Catalytic Hydrothermolysis Jet Fuel Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Feedstock Type (Used Cooking Oil, Animal Fats, Tallow, Algae, Others), By Technology (Pure Catalytic Hydrothermolysis Process, CH Integrated with HEFA, CH + Fischer-Tropsch Synthesis), By Application (Commercial Aviation, Military Aviation, Cargo Aviation, Private & Business Aviation), By Region & Competition, 2020-2030F

Market Overview

The Global Catalytic Hydrothermolysis Jet Fuel Market was valued at USD 2.81 Billion in 2024 and is expected to reach USD 6.40 Billion by 2030 with a CAGR of 14.53% during the forecast period.

The global Catalytic Hydrothermolysis Jet Fuel (CHJ) market is emerging as a crucial segment within the broader sustainable aviation fuel (SAF) landscape, driven by the urgent need to decarbonize the aviation sector. Catalytic hydrothermolysis is an advanced thermochemical process that mimics the natural formation of crude oil but accelerates the conversion of renewable lipids, such as used cooking oil, animal fats, and other non-edible oils, into hydrocarbons under high temperature and pressure. The resulting bio-crude is then upgraded to drop-in jet fuel that meets ASTM D7566 standards. This technology is gaining traction due to its feedstock flexibility, compatibility with existing jet engines, and reduced lifecycle carbon emissions—often achieving up to 80% fewer emissions compared to conventional jet fuel. As global regulatory frameworks and carbon-reduction targets intensify, including mandates such as the European Union's ReFuelEU initiative and the U.S. SAF Grand Challenge, demand for technologies like catalytic hydrothermolysis is expected to rise sharply.

Key players such as Aemetis, Applied Research Associates (ARA), Chevron Lummus Global, and World Energy are spearheading commercial efforts to scale up CHJ production. ARA, the original developer of the CH process, has partnered with Chevron Lummus Global to commercialize its CH Jet® technology, forming a strong foundation for market expansion. Meanwhile, Aemetis is constructing one of the world’s largest CHJ production facilities in California, aiming to supply SAF to major airlines and defense clients. In parallel, large energy companies like BP, TotalEnergies, and ExxonMobil are exploring CH as part of their broader biofuel diversification strategies. These developments are supported by rising airline commitments to achieve net-zero emissions by 2050, leading to long-term offtake agreements that improve project bankability for SAF producers.

Despite its promise, the CHJ market faces challenges related to high capital costs, feedstock availability, and regulatory certification barriers for 100% CHJ usage without blending. However, increasing governmental incentives, such as the U.S. Inflation Reduction Act and tax credits for SAF, are reducing financial risks and encouraging investment. Additionally, the scalability of catalytic hydrothermolysis, combined with its ability to produce high-performance jet fuels suitable for both commercial and military aviation, positions it as a pivotal technology in the sustainable aviation transition. As the global aviation industry continues to pursue cleaner alternatives to fossil-based fuels, the catalytic hydrothermolysis jet fuel market is poised for robust growth, driven by innovation, policy support, and increasing environmental awareness across stakeholders.

Key Market Drivers

Rising Aviation Sector Emissions and Decarbonization Commitments

A major driver of the CHJ market is the increasing global pressure to reduce carbon emissions from aviation, one of the most challenging sectors to decarbonize. Commercial aviation contributes around 2.5% of global CO₂ emissions and is expected to triple its output by 2050 if left unchecked. The International Air Transport Association (IATA) has committed to net-zero carbon emissions by 2050, encouraging widespread adoption of Sustainable Aviation Fuel (SAF) technologies like Catalytic Hydrothermolysis.

• Aviation is responsible for 915 million tons of CO₂ annually (IATA, 2023).
• The average lifecycle CO₂ emissions reduction from CHJ fuel is up to 80% compared to conventional Jet-A fuel.
• The ReFuelEU Aviation initiative mandates fuel suppliers to include 2% SAF by 2025, 6% by 2030, and 70% by 2050 in the EU.
• Over 130 countries signed the International Civil Aviation Organization (ICAO) Long-Term Aspirational Goal in 2022, supporting zero aviation emissions by mid-century.
• Airlines such as United, Delta, and Lufthansa have entered offtake agreements with SAF producers, securing over 15 billion liters of SAF supply through 2030.

These mandates are pushing refiners and technology developers toward advanced pathways like CHJ, which can meet strict sustainability and performance requirements. Because catalytic hydrothermolysis creates a drop-in fuel, it aligns with airline decarbonization roadmaps without requiring modifications to aircraft engines or fueling infrastructure. As policy-backed emissions targets gain momentum worldwide, CHJ is well-positioned to address the growing need for scalable, low-emission jet fuel solutions.

Technological Superiority and Drop-in Compatibility of CHJ Fuel

Catalytic hydrothermolysis offers a significant technological advantage over conventional SAF pathways by producing fully compatible jet fuel with minimal downstream processing. The CHJ process uses a high-temperature, high-pressure water-based reaction to convert renewable lipids directly into bio-crude, which can then be hydroprocessed into Jet-A equivalent fuel. This bypasses the need for more complex intermediates used in other SAF processes, such as alcohols or syngas.

• CHJ fuel meets ASTM D7566 Annex A5 specifications, allowing for blending up to 50% with conventional jet fuel.
• CHJ-derived fuel exhibits high energy density (~43 MJ/kg), comparable to petroleum-based jet fuel.
• The typical carbon content in CHJ jet fuel is greater than 85%, making it suitable for military aviation, where energy performance is critical.
• The process offers a 5–10% higher fuel yield per unit of feedstock compared to HEFA (Hydroprocessed Esters and Fatty Acids).

These performance metrics make CHJ attractive not only for commercial airlines but also for defense sectors requiring high-specification fuels. Additionally, the “drop-in” nature of CHJ means it can be used with existing jet engines and airport fueling systems, eliminating the need for retrofitting infrastructure. As airlines and governments seek technologically viable SAF options, CHJ stands out for its readiness and compatibility.

Expanding Feedstock Base and Improved Feedstock Economics

The viability of the CHJ market is underpinned by the availability of diverse, low-cost, and sustainable feedstocks. Catalytic hydrothermolysis is highly feedstock-flexible, capable of processing used cooking oil (UCO), tallow, animal fats, and even algae and PFAD (palm fatty acid distillate). This broadens sourcing options and allows producers to adapt to regional feedstock availability, helping reduce operational risk and cost.

• Global UCO production exceeds 29 billion liters/year, with China, the U.S., and the EU as top contributors.
• Animal fat output in North America was approximately 5.8 million metric tons in 2022, a significant potential SAF input.
• PFAD availability is expected to rise with palm oil expansion, exceeding 3 million metric tons globally by 2025.
• Feedstock costs account for 60–80% of SAF production costs, making flexibility critical for profitability.
• CHJ’s tolerance to high free fatty acid (FFA) content allows processing of low-grade oils, reducing input costs by 15–25% compared to HEFA pathways.

Because CHJ can process a wider range of low-cost waste oils, it provides producers with a cost advantage, especially when feedstock prices fluctuate. Moreover, using waste-based inputs strengthens sustainability credentials and helps meet regulatory thresholds for carbon intensity. This ability to balance economic efficiency with environmental compliance makes CHJ an increasingly attractive SAF production method.

Government Policies, Incentives, and Mandates Supporting SAF Deployment

Policy frameworks and financial incentives are accelerating the adoption of SAF technologies, with CHJ poised to benefit. Governments worldwide are introducing mandates, subsidies, tax credits, and carbon trading mechanisms that lower the cost differential between SAF and fossil jet fuel. CHJ, with its high carbon reduction potential and feedstock versatility, aligns well with these support systems.

• The U.S. Inflation Reduction Act (2022) offers up to USD1.75/gallon in tax credits for SAF with at least 50% GHG reduction.
• California’s Low Carbon Fuel Standard (LCFS) gives additional credits for SAF, with CHJ earning 20–30 credits/MT of CO₂ avoided.
• The EU Fit for 55 package includes a SAF blending obligation, starting at 2% in 2025 and increasing to 70% by 2050.

These incentives help bridge the cost gap between CHJ and traditional jet fuel, making projects more bankable. In jurisdictions with strong carbon pricing, CHJ producers benefit from monetizing avoided emissions. Policy support not only reduces financial risk but also stimulates demand by requiring fuel suppliers and airlines to integrate SAF into their operations.

Strategic Airline and Defense Sector Demand for Sustainable Jet Fuel

Airlines and defense agencies are becoming powerful demand drivers for CHJ due to its superior performance and compliance with drop-in standards. Commercial airlines are entering long-term offtake agreements to meet sustainability targets, while military entities value CHJ for its similarity to JP-8 and high thermal stability. Both sectors are increasingly focused on fuel diversification and energy security.

• Over 60 airlines have announced SAF procurement agreements as of 2024, many explicitly referencing CHJ-compatible fuels.
• United Airlines committed to purchase 3 billion liters of SAF by 2030, including CHJ-sourced supply from Aemetis.
• The U.S. Department of Defense consumes over 4.5 billion gallons of jet fuel annually, with CHJ being evaluated for military spec use.
• The U.S. Air Force demonstrated CHJ fuel use in F-22 Raptor test flights, validating its performance in high-stress applications.
• SAF blending mandates in airports like Heathrow and Schiphol are pushing airlines toward reliable SAF sources like CHJ.

The ability of CHJ to meet both commercial and military needs gives it a strong market edge. Airlines seek scalable, long-term solutions that align with net-zero goals, while defense agencies prioritize fuel readiness and compatibility. As demand consolidates around high-performance, drop-in fuels, CHJ will increasingly dominate procurement strategies across these high-volume fuel users.

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Key Market Challenges

High Capital and Operational Costs

One of the most pressing challenges for the catalytic hydrothermolysis jet fuel (CHJ) market is the significant capital investment and operating expenses required to build and run commercial-scale production facilities. The CHJ process involves high-temperature, high-pressure hydrothermal treatment, followed by hydroprocessing, which requires sophisticated reactors, corrosion-resistant materials, and energy-intensive operations. Building a single CHJ production plant can cost hundreds of millions of dollars, often limiting investment to companies with substantial financial backing or government support. In addition, feedstock preprocessing and the need for hydrogen during upgrading further raise the operating costs. Compared to conventional fossil jet fuel, CHJ remains 2–4 times more expensive to produce per gallon, creating a cost competitiveness gap that deters adoption in price-sensitive markets. While tax credits and government incentives can help mitigate these costs, they are often region-specific, temporary, and subject to political changes. The dependency on such external financial mechanisms adds risk for investors. Furthermore, CHJ facilities must often be located near reliable sources of feedstock and hydrogen supply, which can restrict location flexibility and increase transportation costs for raw materials and finished products. Until the technology matures and economies of scale are realized through increased global deployment, high capital and operational expenses will continue to pose a barrier to widespread commercialization of CHJ technology. This cost hurdle is particularly problematic for smaller players and emerging markets, which may lack access to affordable financing or government subsidies. Therefore, reducing equipment complexity, improving process efficiency, and securing long-term offtake agreements with airlines or military clients are essential to improving the economic viability of CHJ production.

Limited Feedstock Availability and Competition

Although catalytic hydrothermolysis offers flexibility in feedstock selection, the actual availability of sustainable and economically viable feedstocks is limited. The CHJ process relies heavily on lipid-based feedstocks such as used cooking oil (UCO), tallow, and other waste fats, which are also in high demand from other biofuel sectors, especially for HEFA-based diesel and jet fuel. This intense competition drives up feedstock prices and introduces volatility in supply chains. The global supply of UCO, for instance, is constrained by collection inefficiencies and contamination issues, especially in developing countries where organized recycling systems are lacking. Additionally, animal fats and tallow face logistical, ethical, and regulatory hurdles in several regions, limiting their scalability. Non-edible oils such as jatropha or camelina are not yet cultivated at scale due to low yields, water stress, and land-use conflicts. Furthermore, feedstocks like PFAD (palm fatty acid distillate) raise sustainability concerns and face restrictions in key regions like the European Union due to deforestation-linked environmental impacts. With more countries enforcing strict sustainability criteria for SAF certification, producers must ensure full traceability and compliance with lifecycle emissions thresholds, which adds to procurement complexity and cost. Moreover, feedstock prices can account for up to 80% of the total SAF production cost, leaving CHJ producers vulnerable to fluctuations in commodity markets. The lack of long-term, stable feedstock contracts further exacerbates supply chain uncertainty. To address this challenge, CHJ developers must invest in integrated feedstock sourcing strategies, local collection infrastructure, and explore next-generation feedstocks such as algae, although those technologies are still under research and are commercially unproven. Without a diversified and scalable feedstock base, CHJ production will face bottlenecks that could limit capacity expansion and market penetration.

Regulatory and Certification Barriers

The global deployment of CHJ fuels is heavily dependent on compliance with stringent aviation fuel standards and sustainability regulations. Although CHJ fuel is approved under ASTM D7566 Annex A5 for blending up to 50% with conventional jet fuel, full certification for 100% CHJ use is still under evaluation. The multi-year process of fuel certification is complex, involving extensive testing, engine compatibility assessments, and emissions profiling. This limits the flexibility of airlines and military users to adopt CHJ fuel without blending, slowing down market adoption. Additionally, producers must also comply with various national and international sustainability frameworks, such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), EU RED II, and the U.S. Renewable Fuel Standard (RFS). These frameworks require full traceability of feedstocks, lifecycle GHG emissions documentation, and third-party certifications such as ISCC (International Sustainability and Carbon Certification). For smaller CHJ developers, meeting these documentation and auditing requirements can be burdensome and costly. Complicating matters further, the regulatory environment for SAF is not harmonized globally. For instance, a feedstock or production method accepted in the U.S. may not be eligible under EU regulations, creating market fragmentation. There are also delays in updating blending mandates or SAF incentives to include newer technologies like CHJ, which may still be categorized under broader biofuel definitions. These inconsistencies add risk and uncertainty for investors, producers, and fuel buyers. Until a globally harmonized and streamlined regulatory framework emerges, with faster inclusion of CHJ in relevant incentive schemes and mandates, the growth trajectory of this market will remain constrained by bureaucracy, certification timelines, and regional policy gaps.

Underdeveloped Infrastructure and Supply Chain Constraints

A significant challenge facing the catalytic hydrothermolysis jet fuel market is the underdevelopment of critical infrastructure needed to support large-scale production, distribution, and use of SAF. Unlike fossil jet fuel, which benefits from decades-old refining and logistics systems, SAF—especially CHJ—requires tailored supply chains from feedstock collection and pre-treatment to upgrading, blending, storage, and delivery to airports. Many potential CHJ production sites are located far from major aviation hubs or feedstock sources, requiring significant investment in transport infrastructure such as pipelines, tankers, and refrigerated trucks. Additionally, blending infrastructure at airports is still limited in most regions, and only a handful of global airports offer regular SAF fueling services. As of 2023, fewer than 100 airports worldwide had SAF infrastructure in place, with the majority concentrated in the U.S. and Europe. Beyond logistics, there is a lack of technical training and awareness among fuel handlers, maintenance teams, and regulators on CHJ-specific characteristics, increasing the risk of operational errors or delays. The absence of centralized SAF storage and certification facilities also creates inefficiencies in quality control and inventory management. In some regions, permitting and land-use approvals for biofuel infrastructure can take years, particularly in developing economies. Additionally, there is insufficient integration between CHJ producers and traditional oil refineries or blenders, which limits scalability and increases delivery time. Until a dedicated SAF logistics and blending infrastructure is developed and harmonized across supply chains, CHJ production will struggle to match the scale and efficiency of fossil fuels. Investments in multimodal transportation, airport fueling upgrades, and feedstock pre-treatment hubs will be crucial to unlocking the full market potential of CHJ fuels.

Market Competition from Alternative SAF Pathways

The CHJ market faces stiff competition from alternative SAF technologies, many of which are already commercially established or benefit from more favorable policy environments. Chief among them is HEFA (Hydroprocessed Esters and Fatty Acids), which currently dominates global SAF production due to its technical maturity, lower processing complexity, and broader certification acceptance. In 2023, HEFA accounted for over 85% of global SAF output, making it the default option for most airline contracts. Additionally, Fischer-Tropsch (FT) and Alcohol-to-Jet (ATJ) technologies are gaining ground, especially in markets with access to abundant municipal solid waste or ethanol. These pathways often receive preferential treatment in subsidy programs and blending mandates, diverting both investment and attention away from CHJ. Some governments are prioritizing waste-to-fuel technologies due to their circular economy benefits, while CHJ is still viewed in some policy circles as dependent on food-chain-related feedstocks. Furthermore, big energy companies and refiners are more inclined to invest in drop-in HEFA production since it can be easily co-processed in existing refinery units, unlike CHJ, which requires more specialized infrastructure. Even within the military sector—where CHJ has high potential—competing technologies are being tested and deployed in parallel, potentially slowing CHJ’s share growth. In a competitive landscape where capital and policy support are limited, CHJ producers must fight for funding, feedstock access, and regulatory inclusion. To overcome this, developers need to aggressively demonstrate CHJ’s superior carbon reduction, energy density, and feedstock flexibility while lobbying for its distinct recognition in global SAF frameworks. Without greater differentiation and strategic positioning, CHJ may remain a niche technology overshadowed by more established or politically favored alternatives.

Key Market Trends

Strategic Collaborations Between Technology Providers and Refiners

One of the defining trends in the global CHJ market is the formation of strategic collaborations between technology developers, refiners, and engineering firms to scale up production. Catalytic hydrothermolysis, while technically proven, requires significant capital investment, engineering expertise, and regulatory navigation to become commercially viable. As a result, developers are increasingly partnering with established oil and gas companies or refinery operators to de-risk projects and accelerate market entry.

A prime example is the partnership between Applied Research Associates (ARA)—the original developer of the CH process—and Chevron Lummus Global (CLG), which now holds the licensing rights for CH Jet® technology. Together, they offer end-to-end engineering solutions, technology licensing, and integration into existing refinery infrastructure. Similarly, Aemetis is working with top EPC (engineering, procurement, and construction) firms to build a 90 million gallon per year CHJ production facility in California, one of the largest of its kind.

These collaborations are often supported by joint investments, feedstock supply agreements, and offtake contracts with airlines or military agencies. Strategic partnerships help streamline project development timelines, ensure consistent quality, and increase access to subsidies and carbon credit programs. Moreover, partnerships with refiners allow CHJ to be produced or co-processed at existing facilities, reducing the need for greenfield development and lowering costs.

Engineering firms also play a critical role in advancing CHJ technology by optimizing reactor designs, reducing hydrogen consumption, and improving thermal integration. Some partnerships are beginning to explore modular or decentralized CHJ units, allowing for localized production near feedstock sources or airports.

As SAF demand grows, this trend toward multi-stakeholder collaboration is likely to intensify. It offers a pathway to accelerate commercialization, reduce cost barriers, and ensure that CHJ competes effectively against other SAF technologies in both policy-driven and voluntary carbon reduction markets.

Military Sector Endorsement and Testing of CHJ Fuel

The military sector, particularly air forces in countries like the United States, is emerging as a significant trend driver in the CHJ market due to its demand for energy-dense, high-performance, and drop-in fuels. Catalytic hydrothermolysis jet fuel is being actively tested and adopted by defense agencies for its compatibility with tactical aircraft and its ability to meet strict military-grade fuel specifications, such as JP-8.

The U.S. Department of Defense (DoD), the world’s largest institutional consumer of petroleum, has undertaken several test flights using CHJ fuel, including demonstrations in high-performance fighter jets like the F-22 Raptor. The DoD’s Operational Energy Strategy identifies advanced biofuels as a critical component of energy resilience and emissions reduction, with CHJ recognized for its performance in extreme environments. Fuel produced via catalytic hydrothermolysis also exhibits superior thermal stability and cold-flow properties—key requirements for supersonic and high-altitude missions.

Moreover, military bases are exploring on-site SAF production using CHJ and other technologies as part of their broader push for logistics independence and supply chain resilience. In 2023, the U.S. Air Force funded multiple feasibility studies to assess decentralized CHJ production near forward-operating locations. These projects align with Pentagon-wide sustainability goals and help ensure fuel availability in conflict-prone or remote regions.

Other NATO allies are also piloting CHJ fuels in defense applications. The UK’s Ministry of Defence and the German Bundeswehr have announced SAF initiatives compatible with CHJ technologies. Military endorsement not only validates CHJ’s performance but also opens doors for public-private partnerships and federal funding for R&D and scale-up.

As military procurement increasingly favors sustainable fuels, CHJ is positioned to become a preferred SAF pathway for defense applications, offering dual-use benefits that strengthen its commercial case in both civilian and governmental markets.

Regional Policy Support Creating Competitive Growth Zones

Governments are increasingly designing regional SAF policies that favor advanced technologies like Catalytic Hydrothermolysis, creating competitive growth zones around SAF hubs. This trend is particularly visible in North America and Europe, where state and national-level policy instruments are converging to support CHJ development through tax credits, SAF blending mandates, and direct subsidies.

In the United States, the Inflation Reduction Act (IRA) has become a pivotal policy framework, offering SAF tax credits of up to USD1.75 per gallon for fuels with a minimum 50% lifecycle GHG reduction, a criterion well-aligned with CHJ. Simultaneously, states like California and Oregon provide additional incentives through Low Carbon Fuel Standards (LCFS), where CHJ can earn up to 30 credits per metric ton of CO₂ avoided. These layered incentives significantly improve project economics and are drawing investment to key locations like California’s Central Valley.

The European Union has implemented the ReFuelEU Aviation regulation, which mandates SAF blending starting at 2% in 2025, growing to 70% by 2050. EU programs also offer grants and low-interest loans through mechanisms like Horizon Europe and the Innovation Fund, favoring innovative pathways such as CHJ, especially when paired with waste-based feedstocks.

Meanwhile, emerging economies like India and Brazil are developing SAF policies with localized benefits. India’s National Bioenergy Mission, for example, includes funding for second-generation biofuel technologies like CHJ and aims to reduce reliance on aviation fuel imports.

This policy-driven regionalization of SAF markets is giving rise to localized SAF ecosystems centered around feedstock-rich zones, refinery infrastructure, and airport demand clusters. For CHJ, this means project developers can align their investments with policy hotspots to access financial support, reduce risk, and scale production. As more regions adopt tailored SAF frameworks, CHJ will benefit from this policy momentum and expand globally through targeted market entry strategies.

R&D Focus on Process Efficiency and Feedstock Diversification

Another key trend shaping the CHJ market is the increasing R&D focus on improving process efficiency and diversifying feedstocks to reduce costs and environmental impact. As CHJ transitions from demonstration to full-scale commercialization, producers are investing in innovations aimed at lowering energy consumption, enhancing conversion yields, and expanding the types of feedstocks that can be processed.

One area of active research is the optimization of reactor design to improve heat transfer and residence time, which could reduce overall energy requirements by 15–20%. Researchers are also exploring catalyst improvements to enhance the hydroprocessing stage, enabling higher fuel yields and reducing hydrogen demand. These improvements are critical because hydrogen supply remains one of the most expensive components in CHJ operations.

In terms of feedstocks, current CHJ production largely depends on used cooking oil and animal fats, which are limited in supply. R&D programs are now focused on testing microalgae, industrial lipids, and lignocellulosic oils, which could provide a scalable and sustainable alternative. For example, lab-scale studies have shown that algal lipids can be converted via CHJ with yields comparable to traditional fats, but at lower land and water footprints.

Collaborations between universities, national laboratories, and private companies are accelerating this innovation cycle. The U.S. Department of Energy (DOE) and the European Commission have launched multiple R&D funding calls specifically targeting advanced SAF pathways like CHJ.

As CHJ developers pursue cost parity with fossil jet fuel, process innovation and feedstock flexibility will be essential. These advancements not only improve the economics of CHJ production but also enhance its environmental performance, helping meet tightening global sustainability standards. Over the next decade, ongoing R&D will be instrumental in moving CHJ from a niche solution to a mainstream SAF technology.

Segmental Insights

Feedstock Type Insights

Used Cooking Oil segment dominated in the Global Catalytic Hydrothermolysis Jet Fuel market in 2024 due to its widespread availability, cost-effectiveness, and strong alignment with sustainability mandates. UCO, a waste lipid derived from food processing industries, restaurants, and households, offers an ideal feedstock for the CHJ process, which converts fatty acid-rich materials into high-performance, drop-in jet fuel. Unlike virgin oils or food-grade lipids, UCO is a non-food, second-generation feedstock, making it more environmentally and ethically acceptable under global SAF regulations, including CORSIA, EU RED II, and US RFS.

One of the main reasons for UCO’s dominance is its global abundance. As of 2024, global UCO availability is estimated at 29–30 billion liters per year, with major contributions from China, the United States, and Europe. Additionally, UCO feedstock has a lower procurement cost, typically 15–30% cheaper than virgin oils or animal fats, which is crucial given that feedstock accounts for up to 80% of SAF production costs. Catalytic hydrothermolysis is also well-suited for UCO processing, as it tolerates the high free fatty acid (FFA) content commonly found in waste oils, minimizing the need for extensive pretreatment.

UCO also qualifies for the highest levels of carbon intensity reduction credits under programs like California’s Low Carbon Fuel Standard (LCFS) and the U.S. Inflation Reduction Act, making it financially attractive to CHJ producers. Furthermore, collection infrastructure for UCO is expanding globally, driven by increasing regulatory mandates and support for circular economy initiatives. Governments are promoting UCO-to-fuel value chains through subsidies, tax breaks, and mandatory waste oil collection laws.

With its favorable environmental profile, economic viability, and technical compatibility with the CHJ process, UCO remains the dominant feedstock in 2024, reinforcing its strategic importance in scaling sustainable aviation fuel production.

Technology Insights

Pure Catalytic Hydrothermolysis Process segment dominated the Global Catalytic Hydrothermolysis Jet Fuel market in 2024 due to its ability to produce high-quality, drop-in jet fuel with minimal downstream processing. Unlike hybrid or multi-step methods, the pure CH process directly converts lipid feedstocks like used cooking oil into bio-crude, offering higher yield efficiency and lower energy input. Its compatibility with existing refining infrastructure and adherence to ASTM D7566 standards enabled faster commercialization. Additionally, strong support from technology licensors like ARA and Chevron Lummus Global, coupled with growing airline and defense sector demand, positioned the pure CH process as the preferred production route.

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Regional Insights

Largest Region

North America dominated the Global Catalytic Hydrothermolysis Jet Fuel market in 2024 due to a combination of technological leadership, favorable policy frameworks, robust feedstock availability, and active airline and military participation. The region, particularly the United States, is home to pioneering CHJ technology developers such as Applied Research Associates (ARA) and Chevron Lummus Global (CLG), which have successfully commercialized the CH Jet® process. These companies, along with producers like Aemetis, are leading large-scale CHJ projects backed by significant federal and state-level support.

The Inflation Reduction Act (IRA) and the Renewable Fuel Standard (RFS) provide critical financial incentives, including up to USD1.75 per gallon in SAF tax credits for fuels with high greenhouse gas (GHG) reduction. Additionally, California’s Low Carbon Fuel Standard (LCFS) and similar state programs offer valuable carbon intensity credits that improve project economics. This policy environment has created a strong business case for CHJ producers to scale operations rapidly.

North America also benefits from abundant and well-organized waste lipid feedstocks, particularly used cooking oil (UCO) and animal fats. The U.S. alone generates more than 3 billion gallons of UCO annually, ensuring a steady supply for CHJ production. Furthermore, the presence of established refinery infrastructure allows CHJ technologies to be integrated into existing facilities, reducing capital costs and accelerating deployment.

Airlines such as United Airlines and Delta Air Lines, as well as the U.S. Department of Defense, have actively engaged in CHJ offtake agreements and test flights, creating strong downstream demand. The military’s focus on drop-in, high-performance fuels has further validated CHJ’s viability. With a unique mix of innovation, policy support, and market demand, North America has emerged as the global leader in advancing catalytic hydrothermolysis jet fuel production in 2024.

Emerging Region

Europe is the emerging region in the Global Catalytic Hydrothermolysis Jet Fuel market in the coming period due to its strong regulatory push for sustainable aviation fuel (SAF) adoption and aggressive climate targets. The ReFuelEU Aviation mandate requires 2% SAF blending by 2025, increasing to 70% by 2050, driving demand for advanced SAF technologies like CHJ. Additionally, funding from the EU Innovation Fund and Horizon Europe supports CHJ R&D and commercialization. Europe’s growing network of SAF-ready airports, rising used cooking oil availability, and active participation of airlines and refiners in green fuel partnerships are further accelerating regional market growth.

Recent Developments

• In May 2025, General Index (GX) and ATOBA Energy announced a strategic partnership aimed at redefining Sustainable Aviation Fuel (SAF) benchmarking. The collaboration introduces tailored SAF indices aligned with the distinct cost structures of various production technologies. This data-driven approach supports aviation’s net-zero targets by delivering greater market transparency and actionable insights. The initiative reflects a shared commitment to supporting SAF scale-up through customized pricing intelligence, critical for navigating the evolving economics of decarbonized air transport.
• In April 2025, International Airlines Group (IAG) and Microsoft extended their 2023 SAF co-funding agreement by five years, marking the industry’s largest and longest Scope 3 SAF partnership to date. Microsoft will co-fund an additional 39,000 tonnes of SAF, reducing lifecycle carbon emissions by approximately 113,000 tonnes. This agreement allows Microsoft to address Scope 3 emissions across its value chain while enabling IAG to lower its Scope 1 emissions, reinforcing the strategic role of corporate partnerships in aviation decarbonization.
• In May 2025, Wheels Up Experience Inc. launched a new SAF initiative, enabling private charter customers to directly contribute to aviation decarbonization. Through a partnership with Delta Air Lines, clients can support SAF purchases regardless of aircraft operator or departure airport. This program enhances customer engagement in sustainability efforts while advancing SAF accessibility within private aviation, aligning Wheels Up’s service offering with broader environmental targets and rising demand for low-carbon travel alternatives.
• In February 2024, Airbus and TotalEnergies entered a strategic partnership to accelerate aviation decarbonization through expanded use of Sustainable Aviation Fuel (SAF). Aligned with the industry's 2050 net-zero objective, the partnership focuses on integrating SAF into Airbus operations. TotalEnergies’ SAF, capable of reducing lifecycle CO₂ emissions by up to 90%, strengthens Airbus’s sustainability framework and supports its goal of reducing reliance on fossil-based fuels across its aircraft platforms and testing operations.
• In October 2024, the California Air Resources Board (CARB) and Airlines for America (A4A) reached a landmark agreement to significantly increase intrastate SAF usage. The goal: 200 million gallons annually by 2035—roughly 40% of California’s domestic aviation fuel demand. This tenfold increase underscores California’s leadership in climate policy and demonstrates industry alignment with net-zero commitments. The agreement represents a strategic public-private effort to scale SAF supply while enhancing air quality and advancing the state’s decarbonization targets.

Key Market Players

• Aemetis, Inc.     
• Applied Research Associates, Inc.
• Neste Oyj
• Chevron Lummus Global
• World Energy
• Gevo, Inc.
• Honeywell UOP
• LanzaJet
• SkyNRG
• Fulcrum BioEnergy        

Report Scope:

In this report, the Global Catalytic Hydrothermolysis Jet Fuel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•  Catalytic Hydrothermolysis Jet Fuel Market, By Feedstock Type:

o   Used Cooking Oil

o   Animal Fats

o   Tallow

o   Algae

o   Others

• Catalytic Hydrothermolysis Jet Fuel Market, By Technology:

o   Pure Catalytic Hydrothermolysis Process

o   CH Integrated with HEFA

o   CH + Fischer-Tropsch Synthesis

• Catalytic Hydrothermolysis Jet Fuel Market, By Application:

o   Commercial Aviation

o   Military Aviation

o   Cargo Aviation

o   Private & Business Aviation

• Catalytic Hydrothermolysis Jet Fuel Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  Germany

§  France

§  United Kingdom

§  Italy

§  Spain

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Asia-Pacific

§  China

§  India

§  Japan

§  South Korea

§  Australia

o   Middle East & Africa

§  Saudi Arabia

§  UAE

§  South Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Catalytic Hydrothermolysis Jet Fuel Market.

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Company Information

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