Alcohol-to-Jet (ATJ) Fuel Segmentation
Feedstock Type (Lignocellulosic Biomass, Sugar & Starch Crops, Mixed Feedstocks)
The lignocellulosic biomass segment is anticipated to garner 46% revenue alcohol-to-jet fuel market share by 2037, driven by sustainability mandates and rising quest to manage the feedstock waste. The International Civil Aviation Organization (ICAO) incentivized lignocellulosic ATJ fuels to make an effort to convert aviation to carbon-neutral. Global policies are actively supporting lignocellulosic biomass by giving tax credits and funding for research and development. Other than this, in Europe, under the Renewable Energy Directive, lignocellulosic biomass-based feedstock is prioritized over food-based biofuels. According to the U.S. Department of Energy, annual U.S. lignocellulosic biomass potential will reach 1.2 billion dry tons by 2040.
Application (Commercial Aviation, Military Aviation, Business & General Aviation)
The commercial aviation segment is projected to register 53% of revenue alcohol-to-jet fuel market share by 2037, owing to rising adoption by airlines to meet the Carbon Offsetting and Reduction Scheme for International Aviation targets. There have been stringent decarbonization strategies and favorable government mandates to foster the segment's growth. The U.S. Federal Aviation Administration endeavors for 100% sustainable aviation fuel adoption by 2050. Additionally, the ReFuelEU mandate for the aviation industry in the European Union requires at least 2.1% blending by 2025 and aims to increase it by 70% by 2050. Owing to this, governments are incentivizing ATJ production. Other than this, in 2023, Virgin Atlantic conducted the 1st transatlantic flight using a SAF blend that included ATJ.
Our in-depth analysis of the global alcohol-to-Jet (ATJ) fuel market includes the following segments:
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