In Massachusetts, IDTechEx forecasted that the global sustainable aviation fuel market may reach $50 billion in 2036.
IDTechEx also stated that the global renewable diesel and SAF production capacity will exceed 67 million tons annually by 2036, growing at a CAGR of 8.1% between 2026 and 2036.
“The major drivers for sustainable fuel market growth are policy developments, such as SAF fuel mandates in the EU and UK or the US’ 45Z tax credit, as well as a push from vehicle fleet operators and airlines to reduce carbon emissions,” the firm said.
“However, the sector also faces significant challenges associated with overall energy efficiency, feedstock availability, project development issues (long development timelines and significant funding needed) and achieving cost parity with conventional fossil fuels. Together, these drivers and challenges are shaping this rapidly developing market,” it added.
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