Alcohol to Jet (ATJ) Market Size, Share & Industry Analysis, By Feedstock (Ethanol, Methanol, N-Butanol, Iso Butanol), By Application (Commercial Aircraft, Transport Aircraft, Military Aviation, Others), and Regional Forecast, 2024-2032

The global Alcohol to Jet (ATJ) market size was valued at USD 4.18 million in 2023 and is projected to grow from USD 4.67 million in 2024 to USD 13.18 million by 2032, exhibiting a CAGR of 13.84% during the forecast period.

Alcohol to Jet (ATJ) fuel is an upcoming technology for producing sustainable aviation fuel from renewable resources. It involves converting alcohols, such as ethanol, butanol, or methanol, into synthetic hydrocarbons that meet the strict specifications for jet fuel. This process offers a potential solution to reduce the aviation industry's environmental impact, which currently accounts for about 2% of global greenhouse gas emissions. The Alcohol to Jet (ATJ) technology uses various alcohol feedstocks, such as biomass, waste materials, and agricultural residues. Ethanol production, which exceeds 60 billion gallons annually in the U.S. and Brazil alone, is much larger than that of fats and oils used in other SAF processes like HEFA. Converting agricultural wastes to ethanol for ATJ also helps reduce methane emissions from decomposing crop residues. The growing inclination towards clean energy and limiting carbon emission is leading to the surge in the development of Alcohol to Jet (ATJ) market.

During the COVID-19 pandemic, air travel had a negative impact on growth, causing a temporary setback for initiatives such as Alcohol to Jet (ATJ) fuel technology. Airlines were more focused on survival than investing in sustainable technologies. However, as the aviation industry strives to bounce back, there's a renewed interest in eco-friendly options, including ATJ. Airlines are now considering greener alternatives to align with environmental goals in the post-pandemic era. So, despite the initial slowdown, ATJ might play a crucial role in the aviation industry's recovery.

Alcohol to Jet (ATJ) Market Trends

Rise in Concerns Regarding Climate Change Propelling Demand for Alcohol to Jet Fuel

The growth in concern over climate change has triggered a notable increase in the demand for Alcohol to Jet (ATJ). This heightened awareness stems from the aviation industry's earnest efforts to address its environmental footprint. In response to the urgent need for carbon emission reduction, there is a growing emphasis on sustainable alternatives, and ATJ has emerged as a frontrunner.

ATJ's appeal lies in its ability to convert alcohols, such as ethanol or methanol, into synthetic hydrocarbons that meet stringent jet fuel standards. This process aligns with the industry's commitment to a more sustainable future. As airlines and the aviation sector actively seek ways to reduce their carbon impact, the demand for Alcohol to Jet continues to rise, shaping a greener trajectory for the aviation industry.

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Alcohol to Jet (ATJ) Market Growth Factors

Growing Demand for Adoption of Biofuel Is Propelling Market Growth

The increasing adoption of biofuels is driving the market's demand for Alcohol to Jet. As industries and transportation sectors globally seek sustainable alternatives, biofuels have gained importance. ATJ, a synthetic biofuel derived from alcohol, aligns with this growing demand for eco-friendly options.

The global efforts to reduce reliance on conventional fossil fuels and mitigate environmental impact have propelled the adoption of biofuels, and ATJ stands out due to its capacity to meet strict jet fuel specifications. Airlines and the aviation industry, in particular, are accelerating their efforts to integrate biofuels such as ATJ into their operations, contributing to the overall growth of this market. This trend underscores the pivotal role of biofuels, especially ATJ, in shaping a more sustainable future for the transportation sector.

Rise in the Number of Commercial Aircraft is Boosting Market Growth

The increasing number of commercial aircraft is a key driver in propelling the Alcohol to Jet (ATJ) market share. As the aviation industry expands and more airplanes are commissioned, there is a growing demand for sustainable aviation fuels to protect the environmental impact. ATJ's ability to convert alcohols into synthetic hydrocarbons and meet strict jet fuel standards aligns with this need for eco-friendly alternatives.

Airlines, facing pressure to reduce their carbon footprint, are exploring sustainable solutions, and ATJ is gaining traction as a viable option. The rise in commercial aircraft amplifies the demand for ATJ as the industry seeks to balance growth with environmental responsibility, contributing to the overall market expansion of this innovative biofuel.

RESTRAINING FACTORS

Limited Availability of Feedstock to Process ATJ May Hinder Market Development Pace

The limited availability of feedstock significantly constrains the Alcohol to Jet (ATJ) market growth. Feedstock, such as ethanol, butanol, or methanol, is the raw material used to produce ATJ. When the supply of these key ingredients is restricted, ATJ's production capacity is hampered. Competition with other industries for the same feedstock, variations in agricultural production, or supply chain disruptions can lead to feedstock shortages. This scarcity affects the overall production volume of ATJ and may contribute to increased costs, hindering the market's potential growth. Addressing challenges with feedstock availability is crucial to unlocking the full potential of ATJ as a sustainable aviation fuel.

Alcohol to Jet (ATJ) Market Segmentation Analysis

By Feedstock Analysis

Affordable and Convenient Refining Process Assist Ethanol Segment to Lead

Based on feedstock, the market is segmented into ethanol, methanol, N-butanol, and iso butanol.

The ethanol segment took the command in 2023 within the market plays a significant role in advancing sustainable aviation fuels. Ethanol, derived from renewable sources such as biomass or agricultural residues, is a crucial feedstock for producing alternative jet fuels. Adopting ethanol is easy, cheap, and convenient for the best refining process. North America and Europe lead in ethanol-based Alcohol to Jet fuel production, leveraging established ethanol industries and supportive regulatory frameworks.

The methanol segment also holds a significant share in this market due to the rising need for sustainable aviation solutions coupled by the favorable government policies and industry innovations. Methanol can be produced from various renewable sources such as biomass, municipal solid waste, and even directly from carbon dioxide and hydrogen, thus making it a cleaner feedstock for the AVJ production.

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By Application Analysis

Commercial Flight Segment Takes the Lead with the Adoption of Alternate Fuel

Based on application, the market is segmented into commercial aircraft, transport aircraft, military aviation, and others.

The commercial aircraft segment is dominating and growing exponentially due to more frequent people traveling inter and intra cities. The primary goal of these flights is to reduce carbon emissions. Adopting alternative fuel is the major step toward achieving this goal, increasing flight usage.

The military aviation is also holding a notable share in the market due to the rising spending in the defense sector by the government of the different countries. The spending is increasing in different countries such as the U.S., China, India, and many others for powering their defense sector owing to the rising geopolitical tensions.

REGIONAL INSIGHTS

The market is studied geographically across North America, Europe, Asia Pacific and the rest of the world.

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The Alcohol to Jet (ATJ) market exhibits diverse regional dynamics. Europe dominates the global Alcohol to Jet market. The region observes a substantial expansion, primarily due to stringent environmental regulations fostering the adoption of sustainable aviation fuels and increased investments in advanced biofuel technologies.

North America, is the second dominating region in the market due to the supportive governmental policies and collaborative efforts between the aviation and biofuel industries. For instance, in January 2024, LanzaJet unveiled the Freedom Pines Fuels facility in Georgia, U.S., and the world's first commercial plant for producing sustainable aviation fuel (SAF) from ethanol. This facility, supported by the DOE’s Bioenergy Technology Office since 2016, aims to optimize SAF production and reduce costs. In its first year, the facility will produce nine million gallons of SAF and one million gallons of renewable diesel.

Asia Pacific experiences a fastest growth in the market, driven by the expanding aviation sector coupled by the growing air traffic. The rising economic development among the countries of the region, coupled by the surging tourism industry, the demand for commercial aircrafts is growing, further attributing the AVJ fuel demand. According to the Pacific Asia Travel Association, international visitor arrivals (IVAs) to Asia Pacific are projected to rise from 619 million in 2024 to 762 million in 2026, achieving a recovery rate of 111.6% compared to the 2019 level.

In the rest of the world, there is a rising interest in sustainable aviation fuels, particularly in Brazil, and there is an increasing awareness of sustainable aviation fuels, with potential for growth through partnerships among airlines, biofuel producers, and governmental entities.

List of Key Companies in Alcohol to Jet (ATJ) Market

Leading Players such as Gevo are Active across Different Technologies to Produce sustainable aviation fuel (SAF) to Fortify Market Position

The global Alcohol to Jet (ATJ) market is highly competitive, with multiple players active across different distribution channels. Industry participants emphasize introducing new alternative fuels with new technologies to increase efficiency and decrease carbon emissions. Additionally, the organizations enter into merger and acquisition deals to expand their technological horizons.

Numerous companies operate in several countries to cater to the customers' demands. Gevo and Lanza Tech are expected to account for a significant market share due to their extensive product portfolio and strong brand value. Furthermore, these companies are also focused on enhancing its sales, distribution, and marketing channels through partnerships with local associates to fortify its product reach across North America. Additionally, other key participants operating in the industry include Honeywell, skyNRG, Total Energies, Masdars, and Exxon mobil, leading in providing various Alcohol to Jet fuels across different verticals. Consequently, numerous other small and medium players are present across the industry with different capacities to produce alcohol to jet fuel.

LIST OF KEY COMPANIES PROFILED:

• Gevo Inc (U.S.)


• Lanza Tech (U.S.)


• Honeywell (U.S.)


• SkyNRG (Netherlands)


• Total Energies (France)


• Masdar (UAE)


• Thyssenkrupp (Germany)


• ExxonMobil (U.S.)


• KBR, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2023 – Gevo Inc. unveiled its second-quarter financial results, highlighting the increasing production of its Renewable Natural Gas (RNG) business. The company also shifted toward a modularized Alcohol to Jet technology strategy.


• July 2023 – Gevo has recently agreed with a subsidiary of McDermott to provide front end engineering and early planning services for developing multiple sustainable aviation fuel facilities in North America.


• June 2023 – LanzaJet and LanzaTech have been selected by Air New Zealand and the Ministry of Business, Innovation, and Employment to support the second study stage to determine the commercial viability and sustainability of domestic SAF production in New Zealand.


• February 2023 - Axens has launched the Jetanol brand for its Alcohol to Jet Technology, aiming for a project pipeline nearing 3 million tons (1 billion gallons) of Sustainable Aviation Fuel (SAF) per year. This technology has been selected for five industrial-scale projects, now in advanced engineering or early construction stages, with a combined SAF production capacity of over 1.4 million tons (460 million gallons) per year.


• September 2022 – Gevo, a biofuel producer for aviation, initiated the construction of its inaugural large-scale sustainable aviation fuel facility, Net-Zero 1, in Lake Preston, South Dakota. The Lake Preston facility is engineered to convert carbohydrates derived from low-carbon corn into sustainable aviation fuel, specifically jet fuel.

REPORT COVERAGE

The research and business intelligence report offers an in-depth analysis of the market. It further details the adoption of Alcohol to Jet across several regions. Information on trends, drivers, opportunities, threats, and market restraints can further help stakeholders gain valuable insights into the market. The report offers a detailed competitive landscape by presenting information on key players, along with their strategies, in the market.

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