(MENAFN- GlobeNewsWire - Nasdaq) The market presents promising opportunities as aviation pushes toward sustainability. Policies and incentives like the U.S. Inflation Reduction Act and the EU's ReFuelEU program bolster its growth, while innovations and strategic shifts towards advanced feedstocks enhance its potential.Dublin, Sept. 12, 2025 (GLOBE NEWSWIRE) -- The "Ethanol to Jet Fuel Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F" has been added to ResearchAndMarkets's offering.
The Ethanol to Jet Fuel Market was valued at USD 320.64 Million in 2024, and is expected to reach USD 857.51 Million by 2030, rising at a CAGR of 17.64%. As the aviation industry intensifies efforts to reduce its carbon footprint, ethanol-derived jet fuel is emerging as a significant solution within the sustainable aviation fuel (SAF) ecosystem.
Key Market Drivers
Decarbonization Mandates in the Aviation Sector
The increasing urgency to decarbonize the aviation industry is a primary factor fueling the ethanol to jet fuel market. Aviation contributes 2-3% of global CO? emissions, a figure expected to grow alongside air travel demand. To achieve net-zero targets by 2050, international bodies like ICAO and national governments are mandating the use of Sustainable Aviation Fuels (SAF).
Ethanol-based SAF, particularly via the Alcohol-to-Jet (ATJ) process, delivers lifecycle GHG emissions reductions of up to 70% compared to traditional jet fuel. Policy frameworks like the U.S. Inflation Reduction Act offer tax credits of up to USD 1.75 per gallon for qualifying SAF, with ethanol positioned advantageously due to its availability and lower carbon intensity. In the EU, the ReFuelEU Aviation regulation requires a progressive increase in SAF blending, from 2% in 2025 to 63% by 2050, which opens substantial opportunities for ethanol-based fuels.
Key Market Challenges
High Capital and Operational Costs
The ethanol-to-jet fuel market faces significant financial barriers due to high capital and operating costs associated with ATJ technology. Building a commercial-scale ETJ facility demands substantial investments ranging from USD 300 million to USD 600 million, depending on the capacity and technical specifications. In addition to the capital expenditure, the ongoing operational costs remain elevated due to the complex conversion processes, high energy inputs, and maintenance of advanced catalytic systems. Feedstock costs, especially for cellulosic and second-generation ethanol, also add to the expense. While some relief is provided by SAF subsidies and tax credits, their limited duration and scope reduce their effectiveness. Emerging economies lack comparable support mechanisms, hindering global scalability. As most projects are still in pilot or demonstration stages, long-term viability hinges on both technological breakthroughs to reduce costs and the establishment of stable, long-term policy incentives.
Key Market Trends
Shift Toward Cellulosic and Waste-Based Ethanol Feedstocks
An important trend in the ethanol to jet fuel market is the transition toward using cellulosic and waste-derived ethanol as feedstock. Unlike first-generation ethanol sourced from food crops, cellulosic ethanol is derived from non-food biomass such as crop residues, forestry waste, and municipal solid waste. These advanced feedstocks comply with stringent sustainability and carbon reduction guidelines under frameworks like the EU RED II and the U.S. Renewable Fuel Standard. Cellulosic ethanol can deliver GHG reductions of up to 90% over conventional jet fuels, making it highly attractive for SAF production.
Companies like Blue Biofuels and LanzaTech are at the forefront of leveraging lignocellulosic and waste gases to produce ethanol, which is then converted into jet fuel. Technological advances in enzyme efficiency and microbial fermentation are improving conversion yields, while financial incentives for ultra-low carbon fuels are encouraging broader adoption. This trend not only improves environmental performance but also reduces dependency on food-based crops, aligning with circular economy principles.
Key Players Profiled in the Ethanol to Jet Fuel Market:
Honeywell HIF Global Haldor Topsoe Vertimass Gevo Inc. Carbon Clean Solutions LanzaTech Siemens Energy TotalEnergies Masdar
Report Scope
In this report, the Global Ethanol to Jet Fuel Market has been segmented into the following categories:
By Type:
Bio-jet Fuel Synthetic Jet Fuel Blended Jet Fuel
By Feedstock Source:
Corn-based Ethanol Sugarcane-based Ethanol Cellulosic Ethanol Others
By Technology:
Catalytic Conversion Fermentation Gasification & Fischer-Tropsch Synthesis Others
By Application:
Commercial Aviation Military Aviation General Aviation
By Region:
North America United States Canada Mexico
Europe Germany France United Kingdom Italy Spain
South America Brazil Argentina Colombia
Asia-Pacific China India Japan South Korea Australia
Middle East & Africa Saudi Arabia UAE South Africa
Key Attributes
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