Substantial Growth Expected for the Sustainable Fuel Market, Forecasts New IDTechEx Market Report
BOSTON, October 8, 2024 (Newswire.com) - Electrification is widely regarded as a leading solution for decarbonizing the on-road transport sector. However, for certain industries, electrification may not be the most viable option, leading to the growing interest in alternative low-carbon fuels like hydrogen, ammonia, biofuels, and e-fuels. Biodiesel and bioethanol have historically dominated the biofuel market, but sustainability concerns, including land-use change and food production competition, are driving producers to explore advanced fuels like renewable diesel and sustainable aviation fuel (SAF), made from second-generation feedstocks and new process technologies.
Chingis Idrissov, author of the new sustainable fuel market report from market intelligence firm IDTechEx, explains that this has influenced the rise of renewable diesel, especially in regions like the US, Europe, and parts of Asia, such as China, which supply these fuels to global markets. While renewable diesel was initially produced from virgin oils, there is now a strong shift toward more sustainable feedstocks like used cooking oil, waste oils, and animal fats. These alternative sources are also gaining traction in the production of sustainable aviation fuel (SAF), offering a lower environmental footprint.
Idrissov observes, “Despite the variety of existing technologies, both the advanced biofuel and e-fuel markets are still in relatively early stages of development compared to bioethanol and biodiesel. A dominant factor driving the growth of this market is regulation and policy support in key regions like the EU and the US. However, the introduction of new or improved process technologies will also cause a significant shift in the future production landscape.”
The sustainable fuel market is poised for substantial growth in the coming years. IDTechEx forecasts that global production capacity for renewable diesel and SAF will exceed 57 million tonnes annually by 2035. This rapid growth underscores the increasing importance of sustainable fuels in the global energy mix. While regulation will be the primary driver, growing interest from fuel end-users, such as airlines, and continued advancements in production technologies will play an increasingly significant role in shaping the market.
IDTechEx’s new report, “Sustainable Biofuels & E-Fuels Market 2025-2035: Technologies, Players, Forecasts”, provides more detailed insights and market forecasts. For more information, visit www.IDTechEx.com/Biofuels.
About IDTechEx
IDTechEx provides trusted independent research on emerging technologies and their markets. For more information, contact research@IDTechEx.com or visit www.IDTechEx.com.
Source: IDTechEx
