RENEWABLE/BIO JET FUEL MARKET ANALYSIS

Market Challenges And Opportunities

Market Restraints

Inadequate availability of feedstock and refineries to meet SAF production demand

The biological and non-biological resources such as oil crops, sugar crops, algae, waste oil, etc. are the raw materials that play an important role in the entire production chain of alternative aviation fuels such as synthetic fuels, e-fuels, and bio jet fuels. The demand for sustainable aviation fuel can come to a standstill due to the inadequate supply of raw materials required for its production. Also, limitations of refineries that play a major role in the proper utilization of these feedstock’s add to the delay of the overall process of SAF production. The low availability of fuel also becomes a hurdle for the blending capacity of the fuel, leading to less efficiency.

The COVID-19 pandemic disrupted the market severely. The pandemic led to lockdowns to control the virus, which resulted in minimal aviation traffic, thereby declining the demand for aviation fuel. Factors such as government policies and efforts to limit emissions from the aviation industry and increasing growth in air traffic, are some of the major factors driving the market. However, renewable aviation fuel is more expensive than conventional jet fuel, and this cost premium may restrain the market growth during the forecast period.