Renewable Aviation Fuel Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Technology (Fischer-Tropsch (FT), Hydroprocessed Esters and Fatty Acids (HEFA), Synthesized Iso-Paraffinic (SIP), and Alcohol-to-Jet (AtJ)), By End-User (Commercial, Defense, and General Aviation), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 7.39 Billion
CAGR (2026-2031)	48.06%
Fastest Growing Segment	Hydroprocessed Esters and Fatty Acids (HEFA)
Largest Market	North America
Market Size (2031)	USD 77.85 Billion

Market Overview

The Global Renewable Aviation Fuel Market will grow from USD 7.39 Billion in 2025 to USD 77.85 Billion by 2031 at a 48.06% CAGR. Renewable Aviation Fuel, commonly referred to as Sustainable Aviation Fuel (SAF), is a cleaner alternative to conventional fossil-based jet fuel produced from sustainable resources such as waste oils, agricultural residues, or non-biological synthetic sources. The primary drivers supporting the market's growth include stringent government decarbonization mandates, such as the European Union’s ReFuelEU initiative, and the global aviation sector’s commitment to achieving net-zero emissions by 2050. These regulatory frameworks and corporate sustainability goals compel airlines to integrate low-carbon fuels to reduce their environmental footprint and comply with international emission standards.

Despite this regulatory momentum, the market faces significant hurdles regarding supply availability and economic viability. According to the International Air Transport Association, in 2025, sustainable aviation fuel production is expected to reach 1.9 million tonnes, representing only 0.6% of global jet fuel consumption. This restricted production volume exacerbates the challenge of high costs, as SAF currently commands a price premium significantly higher than conventional kerosene, thereby impeding widespread adoption and rapid market expansion.

Key Market Drivers

Implementation of stringent government regulations and carbon blending mandates acts as the primary catalyst for market expansion. Governments are increasingly enforcing legal frameworks that compel the integration of sustainable fuels, thereby mitigating demand risks for producers and ensuring long-term offtake. For instance, the United Kingdom has operationalized aggressive targets to accelerate this transition through legislative means. According to the U.K. Department for Transport, January 2025, in the 'Sustainable Aviation Fuel (SAF) Mandate' guidance, the scheme officially came into force requiring that 2% of all jet fuel supplied to the U.K. must be sustainable, with the obligation scaling to 10% by 2030. This regulatory certainty forces fuel suppliers to adapt their supply chains immediately, driving investment into production infrastructure that would otherwise be considered too risky.

The proliferation of strategic partnerships and long-term offtake agreements is equally critical in stabilizing the market's commercial landscape. Airlines are aggressively securing future supply through multi-year contracts, which provide the revenue visibility necessary for producers to secure financing for new facilities. According to the International Air Transport Association, August 2025, in the 'Growing Airline Engagement in SAF Agreements' report, 81 airlines globally have publicly announced a cumulative total of 170 offtake deals to date. These agreements are essential for verifying the bankability of projects; however, they also highlight the significant economic burden placed on carriers. According to the International Air Transport Association, in 2026, airlines collectively paid a premium of USD 2.9 billion for sustainable aviation fuel in the previous year, underscoring the substantial financial commitment required to support these strategic alliances and drive market scalability.

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Key Market Challenges

The restricted availability of sustainable aviation fuel acts as a substantial barrier to market progress. Current production capacities are insufficient to match the accelerating demand driven by international decarbonization mandates, creating a severe supply-demand imbalance. This scarcity prevents airlines from securing the consistent fuel volumes necessary for regular operations, thereby limiting the practical integration of these renewable resources into existing supply chains.

Consequently, this limited supply exerts upward pressure on prices, rendering the fuel economically challenging for many operators. The high procurement costs required to secure these fuels reduce their competitiveness against established fossil fuel options, forcing airlines to absorb higher operating expenses. According to the International Air Transport Association, in 2024, the cost of sustainable aviation fuel persisted at levels approximately three to five times higher than conventional jet fuel. This significant price premium creates a financial deterrent that hampers widespread adoption and constrains the immediate growth potential of the global market.

Key Market Trends

Commercialization of Power-to-Liquid (PtL) and synthetic e-fuel technologies is fundamentally reshaping the market by addressing the critical feedstock scarcity inherent in biomass-based production methods. Unlike established pathways that rely on finite waste oils or agricultural residues, PtL synthesizes liquid hydrocarbons using green hydrogen and captured carbon dioxide, offering a theoretically unlimited and scalable supply potential. This technological shift is currently attracting substantial institutional capital designed to accelerate industrial-scale deployment and overcome initial cost barriers. According to Infinium, September 2024, in the 'Brookfield to Invest Up to $1.1 Billion in Infinium to Scale Ultra-Low Carbon eFuels' press release, the company secured a strategic funding partnership of up to USD 1.1 billion to expand its proprietary eFuels platform, marking a pivotal advancement in financing synthetic fuel infrastructure.

Emergence of non-airline corporate offtake agreements for Scope 3 emission reductions is simultaneously establishing a vital parallel revenue stream independent of direct carrier procurement. Through blockchain-enabled 'Book-and-Claim' supply chain solutions, corporations such as financial institutions and technology firms purchase environmental attributes detached from physical fuel delivery to decarbonize their business travel footprints. This model injects immediate liquidity into the sector and validates demand beyond regulatory obligations, effectively de-risking projects for producers. According to the Sustainable Aviation Buyers Alliance, April 2024, in the 'SABA Announces Historic Agreements to Purchase Sustainable Aviation Fuel Certificates' statement, a collective of global corporations committed nearly USD 200 million to purchase high-integrity SAF certificates over five years, demonstrating the growing financial power of the corporate buyer segment.

Segmental Insights

Hydroprocessed Esters and Fatty Acids (HEFA) is projected to be the fastest-growing segment in the global renewable aviation fuel market due to its established commercial viability and technical maturity relative to other production pathways. This method utilizes readily available feedstocks, such as waste oils and animal fats, allowing for efficient integration with current fuel logistics and aircraft engines. Approvals from industry bodies like ASTM International validate its performance, fostering widespread confidence among stakeholders. Consequently, producers are prioritizing HEFA capacity expansion to meet immediate regulatory mandates and airline demand for lower-carbon energy sources, solidifying its leading market position.

Regional Insights

North America holds the leading position in the global renewable aviation fuel market, primarily due to robust supportive legislation and established production infrastructure. The United States drives regional growth through the Inflation Reduction Act, which offers tax credits to producers, and the Renewable Fuel Standard program that incentivizes the adoption of low-carbon fuels. Furthermore, the market benefits from significant private sector engagement, as major airlines actively secure long-term supply agreements to meet decarbonization goals. This combination of favorable government policy and strong corporate demand secures North America’s status as the dominant market region.

Recent Developments

• In November 2025, DHL Express entered into a substantial long-term collaboration with Phillips 66 to procure sustainable aviation fuel for its operations. Under this multi-year agreement, the logistics company secured the delivery of approximately 240,000 metric tons of SAF over a three-year period. The fuel is sourced from the Phillips 66 Rodeo Renewable Energy Complex in California, which underwent a conversion to become a renewable fuels facility. This partnership aims to reduce greenhouse gas emissions across the logistics provider's air cargo network and represents one of the largest SAF supply deals for the air freight sector in the United States.
• In April 2025, Neste commenced the production of sustainable aviation fuel at its expanded refinery in Rotterdam, the Netherlands, following the completion of significant facility modifications. This launch increased the company's SAF production capacity at the site to 500,000 tons per annum, significantly boosting its global supply capabilities. The President and CEO of Neste stated that this achievement would enable the company to better support the aviation sector's transition to lower-carbon fuels and meet the growing demand driven by European mandates. The Rotterdam facility's output is part of a broader strategy to scale the company's total renewable products capacity.
• In April 2024, Boeing announced its largest annual acquisition of sustainable aviation fuel to date, securing 9.4 million gallons of blended fuel to support its commercial operations in the United States. This procurement involved collaborations with major fuel suppliers, including EPIC Fuels and Avfuel, with the SAF produced by Neste and World Energy. The agreement specified a blend of 30% SAF made from waste by-products, such as fats and oils, mixed with 70% conventional jet fuel. This strategic purchase was aimed at reducing carbon emissions from the company's ecoDemonstrator program and other commercial flights, reinforcing the aerospace leader's commitment to growing the global fuel supply.
• In January 2024, LanzaJet inaugurated the world's first commercial-scale ethanol-to-sustainable aviation fuel (SAF) production facility, Freedom Pines Fuels, located in Soperton, Georgia. This facility represents a major technological breakthrough in the Global Renewable Aviation Fuel Market, utilizing a proprietary alcohol-to-jet technology to convert low-carbon ethanol into drop-in jet fuel. The plant was designed to produce 10 million gallons of SAF and renewable diesel annually. The CEO of LanzaJet highlighted that this opening demonstrated the viability of their next-generation technology to scale production and support the aviation industry's decarbonization goals using widely available feedstocks.

Key Market Players

• TotalEnergies SE
• Neste Oyj
• Swedish Biofuels AB
• Red Rock Biofuels LLC
• Gevo Inc.
• Honeywell International Inc.
• Fulcrum BioEnergy Inc.
• Preston Corporation Pte Ltd.
• LanzaTech Inc.
• Shell plc

By Technology	By End-User	By Region
Fischer-Tropsch (FT) Hydroprocessed Esters and Fatty Acids (HEFA) Synthesized Iso-Paraffinic (SIP) Alcohol-to-Jet (AtJ)	Commercial Defense General Aviation	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Renewable Aviation Fuel Market, By Technology:

• Fischer-Tropsch (FT)
• Hydroprocessed Esters and Fatty Acids (HEFA)
• Synthesized Iso-Paraffinic (SIP)
• Alcohol-to-Jet (AtJ)

• Renewable Aviation Fuel Market, By End-User:

• Commercial
• Defense
• General Aviation

• Renewable Aviation Fuel Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE