Europe Sustainable Aviation Fuels Market Research Report Information By Fuel Type (Bio Fuel, Hydrogen Fuel And Power To Liquid Fuel), By Manufacturing Technology (Synthetic Iso-Paraffin From Fermented Hydroprocessed Sugar (Hfs-Sip), Hydroprocessed Fatty Acid Esters And Fatty Acids - Synthetic Paraffinic Kerosene (Hefa-Spk), Fischer Tropsch (Ft) Synthetic Paraffinic Kerosene With Aromatics (FT-SPK/A), Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK), Alcohol To Jet Spk (ATJ-SPK) and Catalytic Hydrothermolysis Jet (CHJ)), By Blending Ca

Europe Sustainable Aviation Fuels Market Overview

Europe's Sustainable Aviation Fuels Market Size was valued at USD 0.15 Billion in 2022. The Sustainable Aviation Fuels market industry is projected to grow from USD 0.22 Billion in 2023 to USD 5.17 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 48.20% during the forecast period (2024 - 2032). The rise in demand for clean and sustainable fuels in both commercial and military aviation industries and supported by government initiatives & tax reductions are the main market drivers anticipated to propel the Sustainable Aviation Fuels market in Europe.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Sustainable Aviation Fuels Market Trends

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  Growing focus on reducing carbon emissions and Government initiatives and incentives is driving the market growth.

  
  

In the third quarter of 2023, greenhouse gas emissions in the EU economy are estimated to be 787 million tonnes of CO2-equivalents, marking a 7.1% decrease compared to the same period in 2022. Over the period from 1990 to 2021, net greenhouse gas emissions in the EU-27, including international aviation, declined by 30%. Current projections from EU Member States indicate a target of achieving a 48% reduction in net emissions by 2030 compared to 1990 levels. Aviation emissions covered by the European Union Emissions Trading System (EU ETS) totaled 49.2 million metric tons of carbon dioxide equivalent (MtCO₂e) in 2022. During Phase 3 of the EU ETS, total verified aviation emissions rose from 84 MtCO₂e in 2012 to a peak of 68.2 MtCO₂e in 2020 before dropping significantly by 63% to 25.3 MtCO₂e the following year.

To address emissions, the European Union has implemented an emissions trading system that allows companies to purchase greenhouse gas emissions reductions from other firms at a low cost. Additionally, they are collaborating with local governments to curb emissions. The reduction of emissions is expected to lower the cost of adapting to a warmer world, particularly benefiting poorer and developing countries. Thus, driving the Sustainable Aviation Fuels market revenue.

Europe Sustainable Aviation Fuels Market Segment Insights

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  Sustainable Aviation Fuels Fuel Type Insights

  
  

The Europe Sustainable Aviation Fuels market segmentation, based on Fuel Type, includes Bio Fuel, Hydrogen Fuel, and Power to Liquid Fuel. The BioFuel segment dominated the market. Biofuels are derived from organic materials, known as biomass, which includes plant materials and animal waste. The raw materials for biofuel production primarily consist of traditional natural biomass like fuelwood, charcoal, and animal dung. Additionally, biofuels can be sourced from various crops, including both conventional food plants and specialized energy crops. Forestry, agricultural, fishery products, and municipal wastes can also serve as sources for biofuels. Despite their diverse origins, biofuels have the potential to match the performance of petroleum-based jet fuels while significantly reducing their carbon footprint.

Figure 1: Europe Sustainable Aviation Fuels Market, by Fuel Type, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Sustainable Aviation Fuels Manufacturing Technology Insights

The Europe Sustainable Aviation Fuels market segmentation, based on Manufacturing Technology, includes Synthetic Iso-Paraffin From Fermented Hydroprocessed Sugar (Hfs-Sip), Hydroprocessed Fatty Acid Esters And Fatty Acids - Synthetic Paraffinic Kerosene (Hefa-Spk), Fischer Tropsch (Ft) Synthetic Paraffinic Kerosene With Aromatics (FT-SPK/A), Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK), Alcohol To Jet Spk (ATJ-SPK) and Catalytic Hydrothermolysis Jet (CHJ). The Hydroprocessed Fatty Acid Esters and Fatty Acids - Synthetic Paraffinic Kerosene (Hefa-Spk) segment dominated the market. The HEFA-SPK pathway uses fatty feedstock, such as vegetable oils or waste fats, which undergoes an oxygenation reaction initially. Subsequently, hydrogen is added to break down the fatty compounds into hydrocarbons. These compounds are then further refined into a mixture of various liquid fuels that can be blended up to 50%.

Sustainable Aviation Fuels Blending Capacity Insights

The Europe Sustainable Aviation Fuels market segmentation, based on Blending Capacity, includes Below 30 %, 30 % To 50 %, and Above 50%. The 30 % To 50 % segment dominated the market. The factor encompasses moderate blend capacity, the presence of drop-in facilities in existing fuel systems, and a well-developed supply logistics infrastructure. Additionally, the expansion of research and development facilities is also driving demand for the segment across the region.

Sustainable Aviation Fuels Blending Platform Insights

The Europe Sustainable Aviation Fuels market segmentation, based on the Blending Platform, includes Commercial Aviation, Military Aviation, Business & General Aviation, And Unmanned Aerial Vehicles. The Commercial Aviation segment dominated the market. Air passenger transportation in European countries is experiencing significant growth. For instance, Germany recorded approximately 54.6 million passengers transported by air between April and October 2022. In 2021, the total number of passengers carried by commercial airlines reached approximately 4.54 billion, marking a 5.58% increase compared to the previous year. Europe accounted for 26.4% of the world's aviation traffic in 2020. The European Union (EU) has proposed a mandate to increase the use of Sustainable Aviation Fuel, starting from 2% in 2025 and reaching 63% by 2050. These initiatives are expected to drive substantial advancements in the adoption of sustainable aviation biofuels in the coming years

Sustainable Aviation Fuels Country Insights

The European Commission aims to increase the adoption of Sustainable Aviation Fuel (SAF) to 40% by 2040 as part of its efforts to mitigate greenhouse gas emissions in the aviation sector. This initiative is anticipated to create significant opportunities within the aviation fuel market. The Aviation Initiative for Renewable Energy in Germany (AIREG) is working towards replacing 10% of Germany's jet fuel demand with sustainable alternative aviation fuels by 2025. The German federal government has committed approximately EUR 1 billion to establish corresponding production facilities in the country. The German Aerospace Center (DLR) will lead the initiative and collaborate with industry and scientific representatives to develop concepts, particularly focusing on advancing the technological development of Power-to-Liquid (PtL) kerosene production. Industrial production facilities are scheduled to be constructed from 2025 onwards. The objective is to swiftly produce sustainable fuel in large quantities and at a competitive price. By 2030, the aim is to produce at least 200,000 metric tons of sustainable kerosene annually for German air traffic, resulting in the reduction of climate emissions equivalent to one-third of all domestic flights in Germany. Additionally, the share of sustainable aviation fuel in kerosene is targeted to reach at least 0.2% by 2026 and increase to 2.0% by 2030.

Figure 2: Europe Sustainable Aviation Fuels Market Share By Country 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Sustainable Aviation Fuels Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Sustainable Aviation Fuels market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Sustainable Aviation Fuels industry must offer cost-effective items.

Major players in the Sustainable Aviation Fuels market are attempting to increase market demand by investing in research and development operations, including Neste, Gevo, VELOCYS, Fulcrum BioEnergy, SkyNRG, Prometheus Fuels, World Energy, and Avfuel Corporation.

Key Companies in the Europe Sustainable Aviation Fuels market include

• Neste


• Gevo


• VELOCYS


• Fulcrum BioEnergy


• SkyNRG


• Prometheus Fuels


• World Energy


• Avfuel Corporation

Europe Sustainable Aviation Fuels Industry Developments

March 2022:Neste partnered with DHL Express to announce one of the largest sustainable aviation fuels (SAF) deals to date. This agreement represents Neste's largest SAF deal to date and is among the aviation industry's largest. Through this collaboration, Neste aims to expand its current network and provide seamless connectivity worldwide.

March 2022:BP Ventures invested £3 million in Flylogix, an innovative unmanned aerial vehicle (UAV) company specializing in methane detection using drones. This investment by BP Ventures aligns with its strategy to foster growth in new energy businesses and enhance its global network connectivity.

Europe Sustainable Aviation Fuels Market Segmentation

Sustainable Aviation Fuels Fuel Type Outlook

• Biofuel


• Hydrogen fuel


• Power to liquid fuel

Sustainable Aviation Fuels Manufacturing Technology Outlook

• Hydroprocessing Fatty Acid Esters and Fatty Acids - Synthetic Paraffinic Kerosene (HEFA-SPK)


• Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)


• Synthetic Iso-Paraffin from Fermented Hydroprocessed Sugar (HFS-SIP)


• Fischer Tropsch (Ft) Synthetic Paraffinic Kerosene with Aromatics (FT-SPK/A)


• Alcohol to Jet Spk (ATJ-SPK)


• Catalytic Hydrothermolysis Jet (CHJ)

Sustainable Aviation Fuels Blending Capacity Outlook

• Below 30 %


• 30 % To 50 %


•  Above 50%

Sustainable Aviation Fuels Blending Platform Outlook

• Commercial Aviation


• Military Aviation


• Business & General Aviation


• Unmanned Aerial Vehicle

Sustainable Aviation Fuels Regional Outlook

• Asia Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Indonesia
  
  
  • Thailand
  
  
  • Vietnam
  
  
  • Malaysia
  
  
  • Singapore
  
  
  • Rest of Asia-Pacific