A new report predicts the U.S. sustainable aviation fuel (SAF) market will grow to a value of $6.97 billion by the end of the decade. The study by management consultancy MarketsandMarkets appraised the value of the SAF market last year at under a billion dollars.
There are several processes for SAF production, including biofuels (using organic feedstocks, such as waste fats and oils), power-to-liquid (utilizing renewable electricity to produce SAF from synthesized “green” hydrogen and atmospheric carbon dioxide), and gas-to-liquid (converting natural gas to SAF).
Advancements in biofuel technologies and the fuel’s scalability in production are expected to support the increasing demand for SAF in the U.S. While biofuels have thus far dominated the market, the forecast indicates that the power-to-liquid segment is predicted to grow at the highest compound annual growth rate (CAGR) through 2030.
Conventional jet fuel contains aromatic compounds that help fuel system gaskets swell and prevent leakage, while synthetic fuels such as SAF do not. Modern aircraft and engines were designed to account for the lack of aromatics. As it is, SAF is presently only approved for use in blends of up to 50% with conventional jet fuel. Yet the study predicts that the above-50% blend (once approved) will account for the fastest-growing CAGR in the U.S. SAF market, with increased regulatory support and subsidies for higher blends driving the growth.