Study: SAF Will Be $10 Billion Industry by 2029

 - April 11, 2023, 1:38 PM
The sustainable aviation fuel market is anticipated to grow from a $85 million market at the beginning of the decade to one worth nearly $10 billion by 2029. (Photo: Curt Epstein/AIN)

A study released this week projects the sustainable aviation fuel (SAF) market will reach a value of nearly $10 billion by 2029, with a compound annual growth rate (CAGR) of 60.8 percent. The report by Exactitude Consultancy said the SAF market was worth $85 million last year.

SAF is widely considered one of the crucial legs in aviation’s decarbonization plans. While it is currently approved for use only up to a 50 percent blend with conventional jet-A, neat SAF can provide lifecycle carbon emission savings of approximately 80 percent, as well as offer even higher reductions of harmful particulates and sulfur.

While the report noted the higher price of SAF in comparison to conventional fuel is presently a limiting factor of its widespread adoption, governmental initiatives have been or are being emplaced to provide incentives and mandates for its use as SAF production slowly spools up. The Sustainable Aircraft Fuel Act in the U.S. and the EU’s Sustainable and Smart Mobility Strategy promote the creation, use, and distribution of SAF.

According to the study, biomass-derived SAF (biofuel) represented more than 95 percent of the fuel produced in 2021 and will continue to dominate the market throughout the forecast window. The creation of such fuels use plant and animal residues and non-food crops as feedstock.