Fragmented SAF market struggles for scale
Multiple production routes and regional policy differences hamper nascent sector’s ability to attract investment
The emerging sustainable aviation fuel (SAF) industry is struggling with a patchwork of disparate geographical markets, government policies and production methods—a level of fragmentation that will need to be resolved before investment and demand can scale up, according to aviation and SAF industry executives. SAF is seen as a credible route for decarbonising airline emissions in the short and medium term, as more technologically ambitious alternatives, such as hydrogen and batteries, remain years if not decades away. But SAF makes up less than 1% of the 100b gal of jet fuel consumed by global aviation annually, with North America the biggest market. “It is a highly fragmented market,
Also in this section
21 March 2025
European Hydrogen Bank auction is four times oversubscribed, while industry remains on pause in US amid IRA subsidy uncertainty
21 March 2025
The country is engaging with potential investors from North America and China as it refines its auction process to reflect shifting dynamics in green hydrogen, Hydrom’s managing director tells Hydrogen Economist
13 March 2025
Government awards €1.21b of funding to seven large-scale projects as it chases capacity target of 12GW by 2030
12 March 2025
Speakers at this year’s CERAWeek conference noted the growing interest in green hydrogen, but hurdles such as cost remain to its adoption at scale
