Press release
Aviation Biofuel Market Key Trends and Forecast Research Report 2017 – 2027
Green Development’ is the first priority for large scale industries around the world, with the purpose of reducing their carbon footprint. The aviation industry contributes 2% in the emission of greenhouse gases, which may rise to 3% in coming future. Air transport, being a fast growing transport medium that carries around two billion people and employs 30 million people, plays a crucial role in accounting for carbon emission. It is thus important for the aviation industry to incline towards green development and switch to biofuels.The aviation biofuel market offers second generation sustainable biofuel as first generation biofuel could not meet cost expectations. The aviation biofuel market offers an alternative for current traditional jet fuel, and it is produced from natural feedstock and plant material, such as algae, jatropha and halophytes without acquiring agricultural land or fresh water resources. Thus, the aviation biofuel market is expected to dominate the aviation market throughout the forecast period, owing to its stability in operational cost and the reduced carbon emission advantage.
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Initiatives taken by the European Commission and by aviation industries involved in aviation biofuel production have introduced advancement in aviation biofuel in the European region, in order to achieve consumption of 2 million tonnes of biofuel in the European Civil Aviation sector over the forecast period. With the availability of sustainable raw materials at low prices, it is expected that the supply of aviation biofuel will be accessible across the Europe and on an international platform by 2030. Thus, aviation biofuel is projected to gain remarkable opportunities over the forecast period.
Aviation Biofuel Market: Drivers and Restraints
In the aviation sector, traditional jet fuel is used, which is extracted from the kerosene fraction of crude oil under stringent regulations. Air transportation accounts for more than 10% in energy consumption on a global level. Among gaseous biofuels, electrification, and liquid biofuels, the most advanced substitute for the aviation sector is liquid biofuel, owing to its high specific energy content. With the objective of reduction in CO2 gas emission, the aviation biofuel market is expected to witness robust growth over the forecast period. The rising demand for bio jet fuel, with increasing international trade are expected to drive the aviation market globally, where hydrogenated esters and fatty acids (HEFA) is expected to become a promising alternative to supple ample amount of biofuel in the aviation biofuel market.
European airlines, such as British Airways, Air France and Lufthansa, in co-ordination with Airbus and European aviation biofuel producers have initiated the endorsement of aviation biofuel in Europe. Also, the U.S. Federal government is evolving as an active promoter and buyer of aviation biofuel. An interagency biofuel partnership has been made between the Department of Defense, the U.S. Department of Agriculture and the U.S. Department of Energy in order to avail biofuel for the U.S. Air Force and the U.S. Navy.
However, strict regulations to maintain standard specifications in producing aviation biofuel may affect growth of the aviation biofuel market. This challenge can be overcome with innovative technologies over the forecast period.
Aviation Biofuel Market: Segmentation
The aviation biofuel market can be segmented based on the certified production technology:
Hydrogenated Vegetable Oil (HVO)
Fischer-Tropsch (FT)
The aviation biofuel market can be segmented based on the feedstock:
Sugarcane
Cassava
Grasses
Industrial and Municipal Waste
Jatropha
Algae
Sweet Sorghum
Aviation Biofuel Market: Region-Wise Outlook
Based on geography, the aviation biofuel market is expected to remain predominant in the U.S. over the forecast period. Being a fast growing region in the aviation market, the U.S. civil aviation sector is estimated to account for a significant value share in the aviation biofuel market over the forecast period. The strategic expansion of aviation biofuel producing industries, along with the Federal Aviation Administration (FAA) are expected to increase the consumption of biofuel by 1 Bn gal/Yr of sustainable aviation biofuel by 2018. Followed by the U.S., European nations are expected to witness robust growth in the aviation biofuel market in the coming decade.
Oslo city, Norway has become world’s first airport to deliver jet biofuel, offering it on-tap to all airlines. Such a trend, of swapping into ‘bioport’ to supply aviation biofuel is anticipated to boost the aviation biofuel market in this region over the forecast period. Other countries, such as Australia are taking initiatives to study the novel concept of bioport. Developing nations in Asia-Pacific region, such as India and China are expected to gain significant opportunities in the supply chain for providing feedstock to produce aviation biofuel in near future. Also, the target of attaining 7.5 billion gallons per year of aviation biofuel promoted by China is expected to offer significant opportunities for the aviation biofuel market in the coming future.
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Aviation Biofuel Market: Market Participants
Examples of some of the market participants in the aviation biofuel market are listed below:
Honeywell International Inc.
Red Rock Biofuels
Targray Technology International Inc.
Vega Biofuels
Argent Energy
GEVO
KFS Biodiesel GmbH & Co. KG
PetroSun, Inc.
Shirke Energy
Archer Daniels Midland Company
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