Global Alcohol-to-Jet (ATJ) Fuel Market Size, Forecast and Trend Highlights Over 2025-2037
Alcohol-To-Jet Fuel Market size was over USD 2.83 billion in 2024 and is expected to reach USD 28.06 billion by the end of 2037, witnessing around 19.3% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of alcohol-to-jet fuel is estimated at USD 3.27 billion, fueled by growing emissions from aviation and the increased use of sustainable renewable ethanol and biodiesel in Europe.
The growth of the alcohol-to-jet fuel market can be attributed to the rising demand for biofuel. According to the data published by the U.S. Energy Information Administration in 2023, worldwide biofuel production reached 2.2 million barrels per day. One of the technologically conceivable biofuel technologies is alcohol-to-jet (ATJ). By fermenting sugars into ethanol or other alcohols, it develops jet fuel from sugary, starchy, and lignocellulose biomass, including sugarcane, maize grain, and switch grass.
Additionally, the market is observing significant rapid growth on the back of rising pressure to reduce aviation emissions. Global governments are aiming to use sustainable aviation fuels, including ATJ, to eradicate pollution and meet the climate targets. For instance, in the U.S., the Sustainable Aviation Fuel Grand Challenge set a goal of using almost 3 billion gallons of SAF by 2030, primarily using ATJ. These factors are propelling the market growth during the forecasted period.
Alcohol-to-Jet (ATJ) Fuel Sector: Growth Drivers and Challenges
Growth Drivers
- Surge in adoption in the military: Various countries are including ATJ in the military due to its capability to provide sustainability, energy security, cost stability, etc. For instance, the U.S. Air Force is pioneering in testing and certifying ATJ fuel. For instance, in 2022, the USAF successfully tested the A-10 Thunderbolt II 100% with concentrated ATJ fuel. Also, in the United Kingdom in 2022, the RAF flew a Voyager tanker using unadulterated ATJ for the first time. Also, the Science and Technology Organization published a report in 2023, ATJ could be a viable fuel for military jets.
- Rising technological advancements in feedstock and conversion efficiency: The advancements in technology, such as catalytic process improvement and AI-driven predictive analysis, are reducing the production cost of the ATJ. For instance, Byogy Renewables utilizes machine learning to upgrade ethanol-to-jet conversion efficacy. Additionally, the advanced manufacturing initiative aids AI-optimized biorefineries, enhancing the yields by 16-20%.
- Surge in usage of ATJ in the textile industry: The textile industry is exploring sustainable and eco-friendly alternatives to eradicate carbon emissions, with ATJ fuel a promising option. For instance, the European Union mandates 33% of renewable energy in industry by 2030, encouraging ATJ for textile manufacturing heating processes. Additionally, in 2023, Suzano, a Brazil-based textile industry, invested in ATJ derived from sugarcane ethanol to power the drying process of textiles. This development is expected to replace 15.5% of fossil fuels by 2025 in textile thermal operations.
Challenges
- Dependency on feedstock availability: There is limited availability of waste-based feedstock, such as agricultural residues and municipal waste, which obstructs scalability. The unavailability affects the cost and feasibility of large-scale ATJ fuel production. Also, the transportation of low-density biomass is logistically costly and complex.
- Lack of adequate infrastructure: Various textile mills need boiler upgrades to utilize ATJ efficiently, as the plant requires separate tanks or pipelines to avoid contamination. The exorbitant cost of the dedicated infrastructure poses a challenge to the alcohol-to-jet fuel market growth.
Alcohol-to-Jet (ATJ) Fuel Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
19.3% |
|
Base Year Market Size (2024) |
USD 2.83 billion |
|
Forecast Year Market Size (2037) |
USD 28.06 billion |
|
Regional Scope |
|
Alcohol-to-Jet (ATJ) Fuel Segmentation
Feedstock Type (Lignocellulosic Biomass, Sugar & Starch Crops, Mixed Feedstocks)
The lignocellulosic biomass segment is anticipated to garner 46% revenue alcohol-to-jet fuel market share by 2037, driven by sustainability mandates and rising quest to manage the feedstock waste. The International Civil Aviation Organization (ICAO) incentivized lignocellulosic ATJ fuels to make an effort to convert aviation to carbon-neutral. Global policies are actively supporting lignocellulosic biomass by giving tax credits and funding for research and development. Other than this, in Europe, under the Renewable Energy Directive, lignocellulosic biomass-based feedstock is prioritized over food-based biofuels. According to the U.S. Department of Energy, annual U.S. lignocellulosic biomass potential will reach 1.2 billion dry tons by 2040.
Application (Commercial Aviation, Military Aviation, Business & General Aviation)
The commercial aviation segment is projected to register 53% of revenue alcohol-to-jet fuel market share by 2037, owing to rising adoption by airlines to meet the Carbon Offsetting and Reduction Scheme for International Aviation targets. There have been stringent decarbonization strategies and favorable government mandates to foster the segment's growth. The U.S. Federal Aviation Administration endeavors for 100% sustainable aviation fuel adoption by 2050. Additionally, the ReFuelEU mandate for the aviation industry in the European Union requires at least 2.1% blending by 2025 and aims to increase it by 70% by 2050. Owing to this, governments are incentivizing ATJ production. Other than this, in 2023, Virgin Atlantic conducted the 1st transatlantic flight using a SAF blend that included ATJ.
Our in-depth analysis of the global alcohol-to-Jet (ATJ) fuel market includes the following segments:
|
Feedstock Type |
|
|
Application |
|
|
Product pathway |
|
|
Blending ratio |
|
Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.
Customize this ReportAlcohol-to-Jet (ATJ) Fuel Industry - Regional Analysis
North America Market
The ATJ fuel market in North America is anticipated to dominate, garnering a 41% of the revenue share, fueled by the robust U.S. federal programs and increasing mandates for clean energy in Canada. In the U.S., companies such as Avina Clean Hydrogen are planning to develop ATJ plants, initiating operations from 2027. Also, the Air Force in the U.S. has started testing ATJ fuels, showcasing military interest in alternative fuels. Additionally, in 2024, the Department of Energy in the U.S. declared a USD 6.5 billion investment to aid almost 34 industrial projects to reduce carbon emissions. These types of investments illustrate a commitment of the government to promote sustainable aviation fuels through policy support. Other than this, in Canada, the ATJ fuel market is flourishing through remarkable government initiatives. In 2024, the federal government joined hands with the Canada Infrastructure Bank and the Province of Manitoba invested USD 12.2 million to conduct a study on sustainable fuel.
Europe Market
The Europe is anticipated to garner almost 38% of the alcohol-to-jet (ATJ) fuel market share, driven by strict environmental regulations and ambitious goals of the government in aviation fuels. The Horizon Europe and Green Deal have allocated remarkable funding for sustainable chemical innovations, with a total investment of USD 1.9 billion in 2023. Other than this, the U.K. government has showcased a strong commitment to conducting sustainable aviation, with the Department for Transport investing USD 19.2 million in 2023 to support the development of SAF plants. Additionally, in 2024, the expenditure from Germany on sustainable chemicals reached USD 3.8 billion, with an 11% surge in demand for green chemical solutions since 2021. These factors are fueling the market growth in the region during the forecasted period. Other than this, France has been actively integrating green economy principles into various industrial operations. In 2023, the government in the country allocated almost 6.2% of its industrial budget to ATJ fuel chemicals development.
Companies Dominating the Alcohol-to-Jet (ATJ) Fuel Landscape
- LanzaJet
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Gevo,Inc.
- Honeywell UOP
- SkyNRG
- TotalEnergies
- Mitsubishi Power
- Cosmo Oil
- Byogy Renewables
- Virgin Atlantic (SAF Ventures)
- Indian Oil Corporation
- Qantas & Jet Zero Australia
The competitive landscape of the alcohol-to-jet fuel market is rapidly evolving as established key players, business giants in the aviation industry, and new entrants are investing in sustainable fuels. Key players in the market are focused on developing new technologies and products that cater to the stringent regulatory norms and consumer demand. These key players are adopting several strategies such as mergers and acquisitions, joint ventures, partnerships, and novel product launches to enhance their product base and strengthen their market position. Here are some key players operating in the global alcohol-to-jet (ATJ) fuel market:
Recent Developments
- In March 2024, Gevo garnered USD 1.52 billion in offtake agreements in South Dakota for establishing a net-zero 1 facility. The plant is projected to produce 65.5 million gallons per year of alcohol-to-jet fuel.
- In January 2024, LanzaJet inaugurated the world’s 1st commercial-scale ATJ plant in Soperton, with a capacity of 10 million gallons/year. The initiative is supported by Microsoft with an investment of USD 50 million as a climate innovation fund.
Author Credits: Dhruv Bhatia
- Report ID: 5070
- Published Date: May 28, 2025
- Report Format: PDF, PPT
