Initiatives for sustainable aviation fuel play a significant role in lowering aviation's greenhouse gas emissions and assisting the sector's transition to net zero emissions by 2050. They play a crucial role in the aviation sector's broader commitment to combating climate change. The European Union has established an emissions trading system that enables businesses to buy greenhouse gas emission reductions from other businesses at a discount. To lower their emissions, they are also collaborating with regional administrations. Additionally, lowering emissions can help lower the cost of adjusting to a warmer planet, which can be especially beneficial for emerging and less developed nations. Major growth potential are anticipated to be served by the growing number of partnerships between airlines and SAF producers. Bright market potential for major businesses are anticipated in the near future as the number of passengers flying increases. The American government has committed to spending close to 4 billion gallons over the next five years in order to increase the supply of sustainable aviation fuel.
According to Coherent Market Insights, with a forecasted compound annual growth rate (CAGR) of 61% from 2023 to 2030, the global market for Sustainable Aviation Fuel is expected to reach US$ 460.1 million in 2022.
Major Players in the Sustainable Aviation Fuel Industry:
1. Neste
The firm was started in 1948 and is based in Espoo, Finland. It creates, refines, and sells oil products. It also offers engineering services and production technology licenses. Neste and ITOCHU Corporation increased their collaboration in February 2022 to increase the accessibility of sustainable aviation fuel (or "SAF") in Japan. In 2022, Neste operated renewable diesel refineries in Porvoo, Singapore, and Rotterdam, the Netherlands, as well as conventional oil refineries in Porvoo, Finland.
2. AEMETIS, INC.
The company was founded in 2006 and is based in Cupertino, California, United States. Aemetis, Inc. is a biochemical and renewable fuels firm that specializes in the research, marketing, and acquisition of technologies that can replace conventional petroleum-based goods. Aemetis completed extensive maintenance and upgrades at the 65 MGY California Biofuel Plant, and operations were resumed there in May 2023.
3. Gevo
The firm was founded in 2005 and is located in Englewood, Colorado, United States. The business provides goods that facilitate the development of green chemicals made from renewable resources as well as fuels for the diesel and jet sectors. Gevo, Inc. and Delta Air Lines, Inc. entered into a "take-or-pay" deal in March 2022 under which Gevo, Inc. will provide 75 million gallons of sustainable aviation fuel (SAF) annually for a period of seven years.
4. Shell PLC
The firm was started in 1907 and is based in London, United Kingdom. Petroleum products are explored for and refined by Shell PLC. The company runs service station networks, produces and imports chemicals, lubricants, and fuels. The deal to provide Amazon Air with up to six million gallons of blended SAF, which has the potential to cut carbon emissions by 20%, was reached in July 2020 between Shell and World Energy.
5. Lanza Jet
The company was started in 2020 and is based in Illinois, United States. "LanzaJet is a pioneer in the development of sustainable fuels and is committed to advancing the energy revolution by embracing the circular economy. LanzaJet and Marquis Sustainable Aviation Fuel (Marquis SAF) signed a memorandum of understanding (MOU) in February 2022 to build a 120 million gallon per year integrated sustainable fuels plant in the United States.
6. Sky NRG
The firm was founded in 2008 and is based in North Holland, Netherlands. The leader in the world market for environmentally friendly aircraft fuel is SkyNRG. The business offers services to develop a market for sustainable jet fuel as well as fuel products to the aviation industry
Definition: A type of biofuel called sustainable aviation fuel is similar to regular jet fuel in characteristics but has a much lower carbon footprint. SAF has the potential to significantly reduce life cycle GHG emissions, depending on the feedstock utilized and the technology employed to create it. There are also some new SAF paths with a net-negative GHG footprint.
