Sustainable Aviation Fuel Market Size 2025 By Top Players - Red Rock Biofuels, Aemetis, Neste MY, Fulcrum BioEnergy

Do you know aviation accounts for over 2% of industry and fossil fuel-related CO2 emissions. This makes sustainability crucial in the aviation industry since it lowers carbon emissions and encourages ethical behavior. As stated in a report by Aviation: Benefits Beyond Borders, the global aviation industry went one step further in October 2021 when it announced that it would reach net-zero carbon emissions by 2050. Therefore, decarbonization of the aviation industry is a key focus by embracing sustainable aviation fuels (SAF) and reducing air travel. SAF is an alternative fuel with comparable qualities to traditional jet fuel but a lower carbon footprint.

For instance, Renewable jet fuel known as SAF can cut CO2 emissions by an average of 79%. Moreover, it is being developed to power aircraft with up to 100% SAF in the future, eliminating the need to blend it with fossil fuels. The global sustainable aviation fuel market is witnessing rapid growth driven by increased environmental awareness, government regulations promoting worldwide green aviation initiatives, and ongoing technological innovations. Going forward, this blog explores the current market trends driving SAF adoption.

1. Airline Commitment and Corporate Sustainability Goals

According to IATA, airlines have pledged to reach net zero carbon emissions by 2050 under the Fly Net Zero initiative. Airlines show their dedication to sustainability by reducing carbon emissions and adopting ecologically friendly procedures. To reach net zero carbon emissions, ten of the most environmentally conscious airlines, including United Airlines, Delta Air Lines, and JetBlue Airways, are lowering emissions and adopting SAF.

In March 2025, JetBlue and its fuel collaborators launched the region's inaugural steady supply of sustainable aviation fuel (SAF) for commercial operations at John F. Kennedy International Airport. Kennedy International Airport (JFK) in New York. In fact, as part of its ongoing efforts to reduce all emissions from its worldwide operations, Delta Air Lines invested around USD 1 billion over the next ten years. Consequently, Delta Air Lines has committed to purchasing over 240 million gallons of sustainable fuel.

2. Growing Regulatory Support

Globally, governments are enacting laws to lessen the environmental effects of aviation. This is greatly accelerating the expansion of markets for SAF. The deployment of SAF depends heavily on government policy since it not only lowers aviation emissions but also boosts economic expansion. Governments can accelerate innovation and drive the widespread adoption of sustainable aviation fuel (SAF) by implementing supportive legislation and strategic policy frameworks. For instance, The Biden administration has established a non-binding goal of producing around 2 billion gallons of SAF annually in the USA by 2030. Adopted in August 2022, the Inflation Reduction Act provides over USD 295 million over five years to help achieve this goal.

Best practices for promoting the development and adoption of sustainable aviation fuel (SAF) can vary across states and regions, reflecting local priorities, resources, and regulatory environments. China's new Sustainable Aviation Fuel policy is a component of the nation's larger goal of becoming carbon neutral by 2060. The goal of the program, as stated by the Chinese Civil Aviation Administration last year, is to make China a leader in the global SAF market by generating over 8 million tons of SAF annually by 2030.

3. Technological Advancements

Technological developments are significantly increasing the productivity of SAF production processes, creating new opportunities for a more environmentally friendly aircraft industry in the future. In April 2024, Honeywell International Inc. launched a new Fischer-Tropsch Hydrocracking technology, FT Unicracking addressing the issues of high production costs and a shortage of conventional SAF feedstocks. FT Unicracking technology generates more SAF at a lower cost and with fewer waste by-products.

This established technological pathway is commercially viable and provides several benefits over other approaches. Moreover, SAF's carbon footprint can be further decreased by utilizing emerging technologies like carbon capture and utilization and offering more choices for environmentally friendly aircraft. Furthermore, biotechnology integration has made it possible to produce SAF from renewable sources, like algae which is a practical and sustainable biofuel production option that can take the place of diesel or petroleum.

4. Collaboration Between Airlines, Governments, and Fuel Producers

The growth of joint ventures and strategic alliances between technology innovators, fuel manufacturers, and airlines are necessary to boost productivity and expand manufacturing to satisfy the rising demand for SAF. Businesses are spending money on innovative SAF production techniques to ensure the availability of SAF in the market.

In November 2024, California Governor Gavin Newsom announced a pioneering partnership between the state and Airlines 4 America (A4A) and the California Air Resources Board (CARB) to promote investment, incentives, and governmental support for SAF to assist climate goals and greener air travel. According to the new agreement, 200 million gallons of SAF will be used by 2035, which would account for almost 40% of intrastate travel demand in the state and more than 10 times the present consumption levels.

By 2037, the sustainable aviation fuel (SAF) sector is projected to surge from USD 1.87 billion in 2024 to an impressive USD 240.6 billion, signaling a transformative shift in the aviation industry's commitment to sustainability. Among the companies actively constantly involved in augmenting the accessibility of SAF across the aviation sector are Aemetis, Inc., Cemvita, DG Fuels, Fulcrum BioEnergy Inc., USA BioEnergy, Shell Aviation, and Neste. These businesses, which are highly competitive and relatively concentrated, use a variety of business tactics, including mergers, acquisitions, and partnerships to meet the increasing need for low-carbon aviation solutions. In December 2024, Neste and Air Canada announced an agreement to deliver 60,000 metric tons of neat Neste MY Sustainable Aviation Fuel (SAF) to the Vancouver marine terminal, marking a significant step toward cleaner aviation operations. This demonstrates their dedication to helping the Canadian aviation sector reduce emissions and the significant impact that policy support can have on boosting the use of SAF.

The SAF market was dominated by North America due to the presence of favorable laws, and ongoing efforts to minimize aircraft emissions. To reach net-zero carbon emissions by 2050, the U.S. is actively working to cut aviation-related emissions, primarily through the increased adoption of sustainable aviation fuel (SAF). According to the U.S. Department of Energy, the U.S. government has started several government-wide programs to help reduce emissions in the aviation sector. One of these is the Synthetic Aviation Fuel (SAF) Grand Challenge, which aims to produce at least 3 billion gallons of SAF by 2030 and 35 billion gallons by 2050, which is sufficient to meet all of the country's yearly aviation fuel needs.

In a Nutshell,

Thus, the adoption of SAF is an important step in the aviation industry for reducing emissions in the 2050 timeframe. SAF can be produced from waste and renewable resources that have the potential to perform similarly to jet fuel derived from petroleum. Governments around the world are passing legislation to accelerate the adoption of SAF. Besides this, both governments and airlines are aiming toward achieving net-zero carbon emissions by 2050. Technological advancements are opening up new possibilities for a future aircraft sector that is more ecologically friendly. Towards the end, with continued investment and collaborations between key market players the future of sustainable air travel looks promising.

Source: https://www.researchnester.com/reports/sustainable-aviation-fuel-market/4881

Noida

Research Nester is a global consultancy dedicated to delivering cutting-edge market research and in-depth analysis to our clients who span multiple industries and geographies. Years of collective experience guiding startups and incumbents in tackling unforeseen challenges and seizing unexpected opportunities have fine-tuned our expertise in the global arena. Our accomplishments include partnering with tech innovators in the transformation of IT infrastructure and implementation of cybersecurity measures; guiding financial institutions through asset management and regulatory compliance; and leading pharma companies along the intricate path of clinical development and sale of novel drugs and treatments, among many others.

This release was published on openPR.