Delray Beach, FL, April 11, 2025 (GLOBE NEWSWIRE) — The report titled ‘US Sustainable Aviation Fuel Market by Fuel Type (Biofuel, Hydrogen Fuel, Power-to-Liquid, Gas-To-Liquid), Biofuel Manufacturing Technology (Ft-Spk, Hefa-Spk, Hfs-Sip, Atj-Spk, Chj), Biofuel Blending Capacity, Platform – Forecast to 2030,’ reveals that the US sustainable aviation fuel market is forecasted to reach USD 6.97 billion by 2030, up from USD 0.86 billion in 2024, demonstrating a robust growth rate of 46.8% CAGR.
The burgeoning US sustainable aviation fuel market is attributed to several driving factors. One of the primary catalysts for this growth is the rising concerns about carbon emissions, pushing both military and civil aviation sectors to transition from conventional fossil fuels to alternative fuels, supporting the movement towards more sustainable aviation solutions.
The commitment by the US government to reduce emissions has led to the introduction of tax credits for sustainable aviation fuel. These incentives aim to stimulate production and encourage adoption of environmentally friendly fuels.
Leading airlines, such as United Air, KLM, and JetBlue, have already begun to integrate sustainable aviation fuel, utilizing it in blends of up to 50% with traditional fuels, showcasing both feasibility and viability of these alternative fuels. Notably, United Airlines achieved a significant milestone by operating the first commercial flight using 100% sustainable aviation fuel, which has demonstrated the effectiveness of the technology and has contributed to its broader acceptance in the industry.
The US sustainable aviation fuel market features several major players, including World Energy, LLC (US), Fulcrum BioEnergy (US), Gevo (US), Red Rock Biofuels (US), WasteFuel (US), and Prometheus Fuels (US).
In 2024, biofuels emerged as the dominant segment in the US sustainable aviation fuel market. According to the report, the market is divided by fuel type into biofuel, hydrogen fuel, power-to-liquid, and gas-to-liquid. In 2024, the biofuel segment led the charge, expected to maintain dominance over the forecast period, with the power-to-liquid segment projected to grow at the highest CAGR.
The established infrastructure for producing and distributing biofuels contributes significantly to their market strength. In addition, government incentives and subsidies boost biofuel production, while their compatibility with existing aviation infrastructure facilitates easier adoption compared to newer alternatives like hydrogen.
Biofuels also offer substantial cost-effectiveness and sustainability, alongside lower carbon emissions, which further reinforce their position in the market.
As advancements in biofuel technologies continue, alongside increased scalability in production processes, demand for sustainable aviation fuel in the US is anticipated to rise.
The report indicates that in the US sustainable aviation fuel market, the segment with above 50% biofuel blending capacity is slated for substantial growth during the forecast period.
Market categorization by biofuel blending capacity includes below 30%, 30-50%, and above 50%. During the upcoming forecast period, the above 50% biofuel blending capacity segment is expected to experience the fastest growth, driven by increased regulatory support and subsidies for higher biofuel blends.
Additionally, the demand for more sustainable and environmentally friendly aviation fuels is likely to propel the adoption of higher biofuel blending capacities.
Factors such as advancements in biofuel production technologies and the scalability of production have made it more cost-effective and practical to blend biofuels above 50% in aviation fuel.
Moreover, commitments from airlines to sustainability and the urgency to meet carbon reduction targets are also contributing to the rising demand for higher biofuel blends in the market.
While the US sustainable aviation fuel market presents several opportunities, it is also faced with challenges, including the significant quantity of SAF that must be produced to increase fuel blends.
Market dynamics indicate a clear driver: the increasing need for reduction in greenhouse gas (GHG) emissions. However, the price disparity between sustainable aviation fuel and conventional jet fuel poses a restraint to its widespread adoption.
As the demand for SAF rises globally, an opportunity for growth emerges for airlines seeking to align with sustainability goals.
In parallel, the Middle East sustainable aviation fuel industry is projected to be valued at USD 1.1 billion by 2030, with a CAGR of 49.9% during the forecast period. The region’s access to abundant renewable resources facilitates efficient sustainable aviation fuel production, further enhancing market potential.
Contracts, agreements, and product launches anticipated in the next five years are expected to offer lucrative opportunities for participants in the market, ensuring sustained momentum in the evolving aviation fuel landscape.
image source from：https://www.globenewswire.com/news-release/2025/04/11/3060098/0/en/United-States-Sustainable-Aviation-Fuel-Market-Valued-at-6-97-Billion-by-2030.html
