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The market development of aviation biofuel: Drivers and constraints

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  • Gegg, Per
  • Budd, Lucy
  • Ison, Stephen

Abstract

Aviation biofuel is technically viable and nearing the commercial stage. In the last ten years, biofuels have moved from relative obscurity to a point where certain types of fuel have become fully certified for commercial use in up to 50% blends with standard jet fuel and commercial partnerships between airlines and biofuel producers are being established. Yet despite numerous successful test flights, aviation biofuels have yet to become widely commercialised. Drawing on the findings of in-depth interviews with leading global aviation biofuel stakeholders undertaken between October and December 2011, this paper identifies and examines the perceived factors that are affecting the market development of biofuels for aviation. The paper illustrates that market development is being driven by the combined effects of rising jet fuel prices, the potential future impact of emissions legislation and concerns about fuel (in)security. However, commercialisation is being constrained by high production costs, limited availability of suitable feedstocks, uncertainty surrounding the definition of the sustainability criteria, and a perceived lack of both national and international political and policy support for aviation biofuel. The implications of these findings for commercial aviation and the future development of global market for aviation biofuel market are discussed.

Suggested Citation

  • Gegg, Per & Budd, Lucy & Ison, Stephen, 2014. "The market development of aviation biofuel: Drivers and constraints," Journal of Air Transport Management, Elsevier, vol. 39(C), pages 34-40.
    • Handle: RePEc:eee:jaitra:v:39:y:2014:i:c:p:34-40
    DOI: 10.1016/j.jairtraman.2014.03.003
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    References listed on IDEAS

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