Renewable/Bio Jet Fuel Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Conversion Pathways (Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK), Hydroprocessed Esters and Fatty Acids (HEFA), Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (SIP) and Alcohol to Jet SPK (ATJ-SPK)), By Feedstock (Agriculture Crops, Aquaculture Crops, Energy Crops, Multiple Solid Waste, and Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 21.02 Billion
CAGR (2026-2031)	12.13%
Fastest Growing Segment	Hydroprocessed Esters and Fatty Acids (HEFA)
Largest Market	North America
Market Size (2031)	USD 41.78 Billion

Market Overview

The Global RenewableBio Jet Fuel Market will grow from USD 21.02 Billion in 2025 to USD 41.78 Billion by 2031 at a 12.13% CAGR. Renewable Bio Jet Fuel, commonly referred to as Sustainable Aviation Fuel (SAF), is a liquid fuel derived from renewable biological or synthetic feedstocks, such as waste oils or agricultural residues, which significantly reduces lifecycle carbon emissions compared to conventional kerosene. The market is primarily supported by stringent government decarbonization mandates and the aviation sector’s binding commitments to achieve net-zero emissions by 2050. These fundamental regulatory and corporate obligations create a sustained demand for low-carbon propulsion solutions, operating as distinct forces from temporary technological trends.

However, a significant challenge impeding broader market expansion is the high production cost relative to fossil fuels, exacerbated by the limited availability of scalable feedstocks. This economic disparity creates a price premium that restricts widespread adoption and infrastructure investment. Underscoring this supply constraint, according to the International Air Transport Association, in 2025, global sustainable aviation fuel production was projected to reach 1.9 million tonnes, representing less than 1% of total jet fuel requirements.

Key Market Drivers

The implementation of stringent environmental regulations and decarbonization mandates acts as the primary catalyst for the market, shifting the aviation sector from voluntary adoption to compliance-driven procurement. Governments worldwide are enforcing binding usage targets to ensure consistent demand, thereby de-risking capital-intensive infrastructure projects for producers. This legislative pressure is particularly evident in Europe, where regulatory certainty is accelerating industrial scalability. According to the European Union Aviation Safety Agency, October 2025, in the 'ReFuelEU Aviation Annual Technical Report', the bloc's operational sustainable aviation fuel production capacity reached 1.4 million tonnes, a volume sufficient to meet upcoming binding blending obligations. Such mandates effectively create a guaranteed market mechanism that bridges the gap between ambitious corporate climate goals and the actual logistics of fuel deployment.

Complementing these regulations, the expansion of government subsidies and tax incentives is pivotal in mitigating the significant cost differential between renewable and fossil-based jet fuels. Financial instruments, including production tax credits and infrastructure grants, are stimulating private sector capital allocation toward new refinery construction and feedstock supply chains. According to the U.S. Department of Energy, January 2025, in the 'SAF Grand Challenge Progress Report', federal incentives have catalyzed over $44 billion in announced investments for domestic production capacity. Despite this robust investment landscape, economic hurdles persist; according to the International Air Transport Association, in 2025, the aviation industry faced a cumulative cost premium of approximately $3.6 billion to secure available sustainable fuel volumes, underscoring the continued necessity of fiscal support to achieve price parity.

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Key Market Challenges

High production costs relative to conventional kerosene constitute a primary barrier to the expansion of the renewable bio jet fuel market. This economic disadvantage stems largely from the scarcity of scalable feedstocks, such as waste oils and agricultural residues, which drives up input prices. As producers struggle to secure consistent raw materials, the resulting operational expenses create a substantial price premium for the final product. This pricing disparity makes it difficult for airlines, which operate on thin profit margins, to integrate sustainable fuels into their standard procurement strategies without absorbing significant financial strain.

The financial burden of this price gap directly restricts the volume of fuel that carriers can purchase, thereby stalling infrastructure development. The inability to achieve price parity with kerosene discourages voluntary adoption beyond mandated minimums. Underscoring this economic pressure, according to the International Air Transport Association, in 2025, sustainable aviation fuel prices exceeded fossil-based jet fuel by a factor of two, and by up to a factor of five in certain mandated markets. Such elevated costs limit the ability of the aviation industry to scale consumption, keeping renewable options as a niche component of the global fuel supply mix rather than a mainstream standard.

Key Market Trends

The Commercial Scaling of Alcohol-to-Jet (AtJ) Synthetic Paraffinic Kerosene is emerging as a critical technological shift to overcome the scalability limits of lipid-based feedstocks. Unlike the prevalent Hydroprocessed Esters and Fatty Acids pathway, which relies on finite waste oils, AtJ technology utilizes abundant agricultural residues and ethanol, thereby unlocking a vastly larger raw material base for industrial production. This technological maturation is transitioning from pilot phases to operational reality, directly addressing the chronic supply shortages impeding market growth. According to BioEnergy Times, July 2025, in the 'World's first ethanol-to-sustainable aviation fuel plant set to start operations by September end' article, the LanzaJet Freedom Pines Fuels facility, a flagship project for this pathway, is expected to produce 37.8 million litres of sustainable fuel annually once fully operational.

Concurrently, the Proliferation of Long-Term Offtake Agreements by Commercial Airlines is reshaping the market's commercial structure by establishing guaranteed demand channels that transcend spot market volatility. Carriers are increasingly entering into multi-year contracts with producers to lock in future supply volumes, a strategy that provides the necessary revenue certainty for developers to secure financing for capital-intensive refinery projects. This trend represents a proactive move by airlines to hedge against future price spikes and ensure volume availability amidst tightening competition for renewable fuels. According to the International Energy Agency, January 2025, in the 'Aviation' report, the cumulative volume of signed sustainable aviation fuel offtake agreements globally reached over 40 billion liters, reflecting the intensifying scale of these commercial commitments.

Segmental Insights

The Hydroprocessed Esters and Fatty Acids segment is projected to be the fastest-growing category in the global renewable bio jet fuel market due to its established commercial viability and regulatory acceptance. This pathway represents the most mature technology currently certified by ASTM International, enabling immediate application in existing turbines without requiring engine modifications. Furthermore, rising mandates for carbon reduction from the International Civil Aviation Organization drive demand for this fuel type, as it efficiently utilizes waste fats and oils to meet strict environmental sustainability standards.

Regional Insights

North America maintains a leading position in the global renewable bio jet fuel market due to strong policy frameworks and established production infrastructure. The United States Environmental Protection Agency actively supports market expansion through the Renewable Fuel Standard program, which incentivizes the integration of renewable fuels into the transportation sector. Furthermore, federal initiatives such as blender tax credits significantly reduce production costs, encouraging continuous private investment. This combination of consistent regulatory support and rising demand from major regional airlines creates a stable environment for industry development, securing the region's status as the primary market for renewable aviation fuel.

Recent Developments

• In May 2025, United Airlines announced a strategic investment in Twelve, a carbon transformation company, to support the commercial production of E-Jet sustainable aviation fuel. This collaboration focused on advancing Twelve's AirPlant One facility in Washington, which utilizes a power-to-liquid technology to convert carbon dioxide and renewable energy into jet fuel. This investment underscored a shift in the Global Renewable/Bio Jet Fuel Market toward diverse technological pathways, moving beyond traditional biomass feedstocks. The partnership aimed to scale the availability of low-carbon fuels and reduce lifecycle greenhouse gas emissions for the airline's future flights.
• In November 2024, Neste and Air Canada finalized a purchase agreement for the supply of 60,000 metric tons of neat Neste MY Sustainable Aviation Fuel. This transaction marked the first time Neste’s renewable fuel was supplied to Canada and represented the airline's inaugural commercial import of SAF. The fuel was scheduled for delivery to the Vancouver marine terminal starting in December 2024, with further shipments planned throughout the following year. This development expanded the reach of the Global Renewable/Bio Jet Fuel Market into North America, supporting the airline’s objective to integrate sustainable fuels into its regular operations.
• In February 2024, TotalEnergies and Airbus entered into a strategic partnership to advance the decarbonization of the aerospace sector through the use of sustainable aviation fuel. Under this agreement, TotalEnergies committed to supplying more than half of the fuel needs for Airbus in Europe. Furthermore, the two companies agreed to launch a joint research and innovation program aimed at developing 100% sustainable fuels tailored to the design of current and future aircraft. This collaboration directly strengthened the Global Renewable/Bio Jet Fuel Market by securing supply chains and fostering technical research into high-blend renewable fuels.
• In January 2024, LanzaJet celebrated the grand opening of its Freedom Pines Fuels facility in Soperton, Georgia, representing a significant milestone in the Global Renewable/Bio Jet Fuel Market. This plant was recognized as the world's first commercial-scale ethanol-to-jet sustainable aviation fuel (SAF) production facility. The opening event, attended by government officials and industry partners, marked the transition of ethanol-based SAF technology from demonstration to commercial reality. The facility was designed to produce 10 million gallons of SAF and renewable diesel annually, utilizing low-carbon, sustainable ethanol to help the aviation industry meet its decarbonization targets.

Key Market Players

• Gevo, Inc.
• Red Rock Biofuels LLC
• Honeywell International Inc.
• Virent Inc.
• Fulcrum BioEnergy, Inc.
• Neste Oil Corporation
• AltAir Paramount LLC
• S.G. Preston Company
• Eni SpA Total S.A.
• BP PLC

By Conversion Pathways	By Feedstock	By Region
Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK) Hydroprocessed Esters and Fatty Acids (HEFA) Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (SIP) and Alcohol to Jet SPK (ATJ-SPK)	Agriculture Crops Aquaculture Crops Energy Crops Multiple Solid Waste Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• RenewableBio Jet Fuel Market, By Conversion Pathways:

• Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)
• Hydroprocessed Esters and Fatty Acids (HEFA)
• Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (SIP) and Alcohol to Jet SPK (ATJ-SPK)

• RenewableBio Jet Fuel Market, By Feedstock:

• Agriculture Crops
• Aquaculture Crops
• Energy Crops
• Multiple Solid Waste
• Others

• RenewableBio Jet 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