Aviation and Marine Biofuels Production Will Reach Nearly $7 Billion in Annual Market Value by 2024

March 11, 2014

Access to capital remains a primary barrier for this fast-developing market, report concludes

Rising prices for crude oil and impending international regulations on emissions from commercial aviation and marine shipping are driving public and private entities to focus on advanced biofuel alternatives to petroleum-based fuels.  These drop-in biofuels, which can be used for aviation and marine applications without change to existing hardware, represent a significant opportunity within the emerging advanced biofuel industry.  Click to tweet: According to a new report from Navigant Research, worldwide revenue from aviation and marine biofuels will reach $6.6 billion annually by 2024.

“With more than 40 commercial airlines around the world flying an estimated 600,000 miles in the last 5 years powered at least in part by biofuels, aviation and marine biofuels remains a fast-growing segment of the global biofuels market,” says Mackinnon Lawrence, research director with Navigant Research.  “Although growth hinges on lowering the cost of finished fuels and access to capital for biorefinery construction, parallel supply chains across all global regions are beginning to mature as a diverse portfolio of potential non-food feedstocks emerge.”

Today, nearly 1 billion gallons per year of nameplate production capacity is in the ground on three continents, exceeding the commercial aviation industry’s target of 1 percent of global jet fuel supply, according to the report.  The speed with which this market has developed has been remarkable, but the capital required to expand capacity to meet current demand is high: a conservative estimate of $30 billion to $40 billion of new capital will need to be invested by 2020 to reach the International Aviation and Transport Association’s target of 6 percent of global jet fuel supply met by advanced biofuels.

The report, “Aviation and Marine Biofuels”, provides forecasts and market sizing for nameplate production capacity and production volumes for advanced aviation and marine biofuels.  Forecasts are segmented by geography, conversion platform, and fuel type.  The total addressable market size for commercial aviation, marine shipping, and U.S. military applications is analyzed, and the report also provides a qualitative analysis of key stakeholder initiatives, market drivers, challenges, and technology developments, as well as profiles of key stakeholders across the value chain.  An Executive Summary of the report is available for free download on the Navigant Research website.

Contact: Richard Martin

+1.303.493.5483

richard.martin@navigant.com

* The information contained in this press release concerning the report, “Aviation and Marine Biofuels,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

Register to Receive Updates

Sign up or login to receive free newsletters, research updates, access to webinars, and other analyst content from Navigant Research.

Research News

Rss
Offshore Wind Capacity Reached Nearly 12 GW by the End of 2015
Key markets include Germany, the United Kingdom, the Netherlands, and China • A recent report from Navigant Research examines the major offshore wind markets, with wind…
Read More »
Global Sales of High-Bay Luminaires and Lamps Are Expected to Total Nearly $20.4 Billion by 2024
The falling prices of light-emitting diode luminaires and lamps are critical to an increasing adoption rate • A recent report from Navigant Research examines the market for industrial and high-bay lighting…
Read More »
Annual Revenue from Outdoor Lighting Controls Is Expected to Reach $1.3 Billion by 2025
Falling LED prices and adoption of intelligent controls are driving growth in outdoor lighting systems • A new report from Navigant Research analyzes the global market for outdoor lighting and…
Read More »
Utility Involvement in the Emerging U.S. Residential Energy Storage Market is Expected to be Crucial to Further Growth
Collaborations between utilities and residential system providers have been one of the key factors in the industry’s growth to date • A new slide-based report from Navigant Research analyzes the U.S. residential energy storage (RES)…
Read More »
View All News

{"userID":"","pageName":"Aviation and Marine Biofuels Production Will Reach Nearly $7 Billion in Annual Market Value by 2024","path":"\/newsroom\/aviation-and-marine-biofuels-production-will-reach-nearly-7-billion-in-annual-market-value-by-2024","date":"9\/27\/2016"}