Global Sustainable Aviation Fuel Playbook for Net Zero Transition, 2035

Market Definition

Sustainable Aviation Fuel (SAF) is a renewable, drop-in alternative to conventional fossil-based jet fuel (Jet-A or Jet A-1), designed to reduce the aviation sector’s carbon footprint. SAF is produced from sustainable feedstocks such as waste cooking oils, animal fats, municipal solid waste, forestry residues, agricultural by-products, and advanced synthetic processes (e.g., Power-to-Liquid using captured CO₂ and green hydrogen).

Unlike conventional biofuels, SAF is specifically developed to meet the stringent performance and safety standards of aviation fuel. It is chemically almost identical to fossil-based jet fuel, meaning it can be blended with conventional jet fuel (up to approved limits, usually 50%) and used in existing aircraft engines, fueling infrastructure, and supply chains without modifications.

Market Insights

The global Sustainable Aviation Fuel (SAF) market is witnessing rapid growth, driven by the aviation industry’s commitment to decarbonization and global net-zero targets. SAF is a bio-based and synthetic alternative to conventional jet fuel, capable of reducing lifecycle greenhouse gas emissions by up to 80% compared to fossil-based fuels.

The SAF market, though at a nascent stage, is expanding at a remarkable pace. According to Syllogist, global SAF production is expected to grow at a CAGR of more than 50% during 2025-2030. The surge in production is largely attributed to increasing investments, policy support, and airline commitments to long-term offtake agreements.

Currently, HEFA (Hydroprocessed Esters and Fatty Acids) is the leading production pathway due to its commercial readiness, cost-effectiveness, and high yield. Other emerging technologies include Fischer–Tropsch (FT) gasification, Alcohol-to-Jet (ATJ), and co-processing techniques, which are expected to gain traction as they mature and scale.

Commercial airlines account for the bulk of SAF consumption, representing over 55% of total demand in 2022. General and business aviation sectors are also adopting SAF, supported by international aviation emission reduction frameworks such as CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).

The aviation industry has been incorporating alternative fuels since 2011, and adoption has grown steadily over the past decade. To date, more than 440,000 commercial flights have operated using SAF. Momentum accelerated significantly in 2021, when companies signed a total of 23 offtake agreements, compared with just five agreements in 2020. The contracted offtake volumes also saw a sharp jump, rising from 415.64 million liters in 2020 to nearly 9.2 billion liters in 2021, reflecting strong industry commitment to scaling SAF adoption.

Market Dynamics: Drivers

Stringent Environmental Regulations and Net-Zero Commitments

Aviation accounts for nearly 2–3% of global CO₂ emissions, and demand for air travel is steadily increasing. This makes the industry a critical focus for decarbonization.

Governments and international organizations are enforcing carbon reduction targets, such as:

• CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) led by ICAO, which requires airlines to reduce or offset CO₂ emissions from international flights.
• The European Union’s ReFuelEU Aviation initiative, mandating a rising share of SAF blending (2% by 2025, 6% by 2030, 70% by 2050).
• The U.S. SAF Grand Challenge, aiming to produce 3 billion gallons per year by 2030 and achieve 100% SAF use by 2050.

Airlines are also voluntarily pledging to reach net-zero by 2050 (e.g., IATA members), which directly boosts SAF demand.

Corporate and Airline Demand (Offtake Agreements & ESG Goals)

Airlines, airports, and corporations are under pressure to reduce their Scope 3 emissions (indirect emissions from travel and supply chains). SAF provides one of the most effective solutions.

This has led to a surge in offtake agreements between airlines and fuel producers. For example:

• In 2021, global SAF offtake agreements reached 9.2 billion liters, compared to only 415 million liters in 2020.
• Major airlines like Delta, United, Lufthansa, and Emirates have signed multi-year SAF procurement contracts.

Corporate buyers like Amazon, Microsoft, and DHL are also partnering with fuel producers to lower their logistics-related emission

Market Dynamics: Challenges

High Production Costs and Limited Supply

SAF is currently 2–4 times more expensive than conventional jet fuel due to high feedstock costs, immature supply chains, and expensive production technologies.

Global SAF production in 2022 accounted for less than 0.1% of total aviation fuel demand (~300 million liters produced vs. ~300 billion liters required annually).

Without large-scale production facilities and continued cost reduction through innovation, airlines may struggle to integrate SAF economically without subsidies.

Feedstock Availability and Sustainability Concerns

Most commercial SAF today is produced via HEFA technology, which relies on waste lipids like used cooking oil (UCO) and animal fats. These feedstocks are limited and highly competed for by other sectors (e.g., biodiesel, chemicals).

Scaling SAF to meet global aviation demand will require diversifying feedstocks, including lignocellulosic biomass, municipal solid waste, and synthetic fuels (Power-to-Liquid).

There are also concerns around land use, food security, and biodiversity if SAF feedstocks are not sourced sustainably.

Market Segmentation

• Based on Feedstock, the Global Sustainable Aviation Fuel market is segmented into
  • Waste Oils & Fats
  • Biomass & Agricultural Residues
  • Sugar & Starch Crops
  • Algae-based feedstocks
  • Municipal Solid Waste
  • Green Hydrogen + Captured CO₂ (for synthetic e-SAF)
• Based on Technology, the Global Sustainable Aviation Fuel market is segmented into
  • HEFA-SPK
  • FT-SPK (Fischer-Tropsch Synthetic Paraffinic Kerosene)
  • ATJ-SPK
  • CHJ (Catalytic Hydro thermolysis Jet)
  • HFS-SIP (Hydro processed Fermented Sugars to Synthetic Iso-Paraffins)
  • PtL / e-SAF
• Based on End Users, the Global Sustainable Aviation Fuel market is segmented into
  • Commercial Flights
  • General Flights
  • Military Aircrafts
  • Unmaned Aerial Vehicles (UAV)
• Based on Type, the Global Sustainable Aviation Fuel market is segmented into
  • Bio-SAF (based on bio-based feedstocks)
  • Synthetic SAF (e-SAF / Power-to-Liquids) (produced using renewable hydrogen + captured CO₂)
  • Blended SAF
  • 100% SAF (long-term vision, still under trials)
• Based on Geography, the Global Sustainable Aviation Fuel market is segmented into
  • Asia-Pacific
  • North America
  • Europe
  • Latin America
  • Middle East & Africa

• All market revenue has been given in US Dollar, while the market volumes are given in million tons.

Historical Year: 2020-2024
Base Year: 2025
Estimated: 2026
Forecast- 2027-2030

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Sustainable Aviation Fuel Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Sustainable Aviation Fuel Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Sustainable Aviation Fuel Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Sustainable Aviation Fuel Market study?