Sustainable Aviation Fuel Feedstock Market by Feedstock Type (Animal Fat, Used Cooking Oil, Rapeseed Oil), Conversion Pathway (HEFA, ATJ, CHJ, PTL, CO-Processing), form (Biomass-Based, synthetic Based), Region – Global Forecast to 2030
Market Definition
SAF (sustainable aviation fuel) feedstock refers to any renewable, non-fossil-based raw material that can be converted into aviation-grade jet fuel using certified conversion technologies. These feedstocks are selected based on their carbon intensity, sustainability credentials, availability at scale, and compatibility with established SAF pathways such as HEFA, FT, ATJ and PTL among others.
Executive Summary
The global sustainable aviation fuel (SAF) feedstock market is poised for exponential growth, driven by rising regulatory mandates, growing airline commitments to net-zero emissions, and significant R&D investments. As the aviation sector contributes approximately 2-3% of global CO2 emissions, the pressure to decarbonize is mounting. SAF, produced from renewable feedstocks, offers a key solution to reduce lifecycle emissions by up to 80% compared to fossil-based jet fuels.
Market Overview
Sustainable aviation fuel is produced using a variety of feedstocks including used cooking oil (UCO), tallow, municipal solid waste (MSW), algae, and agricultural residues. Each feedstock pathway (such as HEFA, FT-SPK, ATJ, and more) offers varying scalability, cost-efficiency, and GHG reduction potential. Governments and organizations like ICAO and IATA are promoting SAF adoption through initiatives like CORSIA. Commercial airlines have started long-term SAF procurement agreements, encouraging suppliers to ramp up production capacity globally.
Feedstock Segment Analysis
Among all feedstocks, used cooking oil (UCO) and animal fats currently dominate the SAF market due to their commercial readiness and alignment with the HEFA pathway. However, limitations in availability pose a scalability challenge. The emerging use of lignocellulosic biomass and algae-based oils is gaining momentum due to higher yield potential and minimal impact on food supply. Innovation in synthetic biology and metabolic engineering is expected to boost algae’s commercial viability post-2027.
Regional Outlook
North America leads the SAF feedstock market, driven by policy support under the U.S. Inflation Reduction Act and California’s Low Carbon Fuel Standard (LCFS). Europe follows closely with mandates under the EU’s "Fit for 55" package. Asia-Pacific is an emerging market with strong growth anticipated in China, Japan, and Singapore due to rising air travel demand and increasing government incentives. Meanwhile, Latin America and the Middle East are exploring SAF pathways using regional biomass sources like sugarcane residues and camelina.
Competitive Landscape
Key players in the SAF feedstock ecosystem include Neste, World Energy, Gevo, Fulcrum BioEnergy, and LanzaJet, among others. Partnerships between airlines (e.g., United Airlines, Lufthansa), technology providers, and oil majors (e.g., BP, Shell) are reshaping the competitive dynamics. The market is characterized by vertical integration, with companies investing in upstream feedstock development and downstream fuel production to ensure supply security and price competitiveness.
Market Outlook and Forecast to 2030
With strong policy backing, increasing SAF offtake agreements, and a global push for decarbonization, the SAF feedstock market is set to witness transformative growth. However, challenges remain in terms of feedstock availability, cost parity with conventional jet fuel, and production scale. By 2030, the SAF feedstock market will not only be larger in value but also more diversified in terms of feedstock types and regional supply chains. Strategic investments, robust policy frameworks, and technology advancements will be crucial to realizing this growth potential.
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Growth opportunities and latent adjacency in Sustainable Aviation Fuel Feedstock Market