One of the main tasks of KnowledgeAgent’s industry teams is to monitor major market changes in their dedicated business field.
Since the Paris Agreement 2015, all industry sectors face substantial challenges to meet the 1.5-degree Celsius target and related CO2 emission reductions. In the chemical and agricultural industry, this led to the emergence of the biofuels sector.
The rise of the biofuels industry
One major transformation will occur in the aviation industry: To achieve the net zero target by 2050, 65% of the industry’s CO2 emissions have to be eliminated through the substitution of fossil jet fuels with sustainable aviation fuels (SAF).
The KnowledgeAgent Chemicals & Agriculture team continuously monitors this industry and has obtained a comprehensive view on this new market. Among the numerous projects, the team is:
- Tracking SAF regulatory changes
The KnowledgeAgent team provided an in-depth analysis of the current and projected regulatory landscape for SAFs across multiple regional markets. The client gained a detailed understanding of blending mandates in specific countries, national carbon pricing mechanisms, and government subsidies for the production of SAF. A scan of planned or potential future regulation up to 2050 allowed the client to derive conclusions on how much of the regulatory landscape will change in the upcoming years.
- Uncovering all global biofuel investments conducted by O&G companies
The KnowledgeAgent team helped a client gain an understanding of current and future investment activities in the SAF market. The main goal of the project was to understand if traditional O&G companies are already transitioning to biofuel technologies (incl. SAF). The analysis showed that despite the strong regulatory push for SAF, major O&G companies have not committed to SAF, as capital investments or future commitments were limited.
- Analyzing the demand for SAF by airlines and airports
As nearly every airline and some airports set CO2 reduction targets, new market players step into the market to supply the demand with SAF. The KnowledgeAgent Chemicals & Agriculture industry team identified more than 20 SAF suppliers and their contracts with the aviation industry. The analysis yielded a total expected market volume by value and quantity.
- Investigating if high SAF blends will lead to higher airline passenger fares
Use of higher SAF blends is associated with higher airline fare prices, as SAF costs are considerably higher than costs for conventional jet fuel. The KnowledgeAgent team investigated if major airlines worldwide have already implemented new pricing mechanisms to pass on higher SAF costs to passengers, or if airlines have found other possibilities to compensate for higher costs in the future.
Do you want to get a better understanding of recent changes and developments in your market? Get in touch with our Chemicals & Agriculture team to inquire about our comprehensive research services:
- Market size estimation (including future development)
- Analysis of market trends, drivers and barriers
- Overview of current and future regulatory environment
- Competitor analysis
- Supply chain analysis
- Product portfolio comparison of market players
- Competitor profiles of market participants (including financial data, strategic news, SWOT, etc.)
- M&A or general market activity