Global E-Kerosene Market Projected to Reach USD 57.19 Billion by 2032, Exhibiting a CAGR of 32.08% during (2025–2032)

List of key player E-Kerosene market Gevo, Inc., Johnson Matthey, Shell Aviation, HY2GEN, Chevron Lummus Global LLC, eFuel Pacific Limited, Climeworks

PUNE, MAHARASHTRA, INDIA, October 8, 2025 /EINPresswire.com/ -- The global E-Kerosene Market is gaining strong momentum as airlines, fuel producers, and governments accelerate efforts toward achieving carbon neutrality in aviation. E-kerosene, also known as synthetic aviation fuel or power-to-liquid (PtL) kerosene, is produced by combining green hydrogen and captured carbon dioxide through renewable energy sources. As a sustainable drop-in fuel compatible with existing aircraft engines and airport infrastructure, it offers a viable alternative to conventional jet fuel.

Increasing international commitments to net-zero targets, coupled with policy incentives such as the European Union’s “ReFuelEU Aviation” initiative and the U.S. Sustainable Aviation Fuel (SAF) Grand Challenge, are expected to drive large-scale adoption of e-kerosene over the next decade.

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Market Size and Growth Drivers

The global e-kerosene market size was valued at USD 6.14 billion in 2024. The market is projected to grow from USD 8.16 billion in 2025 to USD 57.19 billion by 2032, exhibiting a CAGR of 32.08% during the forecast period.

1. Decarbonization of Aviation: The aviation sector contributes around 2–3% of global CO₂ emissions, and e-kerosene offers a promising pathway to achieve emission reductions without modifying existing aircraft technology.

2. Government Regulations and Incentives: Nations across Europe, North America, and Asia are mandating blending quotas for sustainable aviation fuels (SAFs), providing subsidies and tax credits to fuel producers.

3. Technological Innovations: Advancements in electrolyzer efficiency, direct air capture (DAC), and Fischer-Tropsch synthesis are reducing the cost and energy intensity of e-kerosene production.

4. Corporate Sustainability Goals: Airlines such as Lufthansa, Delta, and Air France-KLM are entering long-term procurement agreements with synthetic fuel producers to meet ESG and emission-reduction commitments.

5. Rising Renewable Power Capacity: The expansion of solar and wind installations globally enhances access to low-cost renewable electricity, a critical input for hydrogen-based fuel synthesis.

Key Market Drivers

1. Net-Zero Commitments by Airlines

• Global aviation players are pledging to achieve net-zero carbon emissions by 2050, creating a robust demand outlook for e-kerosene as a certified sustainable aviation fuel.

2. Expansion of Hydrogen Infrastructure

• The development of large-scale green hydrogen hubs in regions like the Middle East, Europe, and Australia underpins the feedstock supply for e-kerosene synthesis.

3. Supportive Policy Frameworks

• Governments are introducing SAF blending mandates (e.g., 5–10% by 2030 in the EU and U.S.), which are expected to create predictable demand for e-kerosene production.

4. Technological Synergies with Carbon Capture

• Integration of carbon capture utilization (CCU) with e-fuel production provides a dual environmental benefit—carbon recycling and emission offsetting.

5. Growing Investments in Power-to-Liquid Facilities

• Several pilot and commercial-scale projects are underway, such as those by Norsk e-Fuel, Synkero, and HIF Global, signaling the transition from demonstration to industrial production.

Market Segmentation

By Feedstock
• Renewable Hydrogen (Green Hydrogen)
• Captured Carbon Dioxide (Industrial/DAC)
• Bio-Derived Syngas

By Production Technology
• Fischer-Tropsch Synthesis (FT)
• Methanol-to-Jet (MTJ) Conversion
• Reverse Water-Gas Shift (RWGS) Process

By End-Use Industry
• Commercial Aviation
• Military & Defense Aviation
• Cargo and Logistics Aviation

By Distribution Channel
• Direct Supply to Airlines
• Airport Fuel Terminals
• Third-Party Fuel Blenders

Regional Insights

North America

North America represents one of the fastest-growing markets for e-kerosene, driven by strong policy support from the U.S. SAF Grand Challenge and increasing investment by energy majors and airline consortia. The presence of advanced hydrogen infrastructure and carbon capture facilities further strengthens the region’s position.

Europe

Europe leads the global e-kerosene landscape due to stringent EU climate goals, the ReFuelEU Aviation initiative, and large-scale projects in Germany, the Netherlands, and Norway. The European Commission’s SAF blending mandate (2% by 2025 and 63% by 2050) ensures a consistent growth outlook.

Asia Pacific

The region is expected to witness exponential growth led by Japan, South Korea, and Australia, focusing on green hydrogen exports and synthetic fuel production. Rapid aviation growth and government-backed hydrogen strategies make Asia Pacific a strategic hub for future e-fuel trade.

Middle East & Africa

The Middle East is leveraging abundant solar energy and strategic investments in hydrogen production to become a global exporter of e-kerosene. Countries like Saudi Arabia and the UAE are developing integrated e-fuel ecosystems in partnership with European and Asian offtakers.

Latin America

Latin America’s potential lies in Chile’s Patagonian e-fuel projects and Brazil’s renewable energy capacity, which position the region as an emerging player in e-kerosene exports.

Future Outlook and Emerging Trends

1. Scale-Up of Industrial PtL Plants:

• Multiple commercial projects scheduled for commissioning between 2026 and 2030 are expected to bring down costs through economies of scale.

2. Declining Cost of Renewable Hydrogen:

• Rapid advancements in electrolyzer technology and renewable energy expansion will significantly reduce feedstock prices, improving e-kerosene’s competitiveness.

3. Integration with Carbon Markets:

• E-kerosene producers may benefit from emerging carbon credit and offset mechanisms, further enhancing project bankability.

4. Airline Offtake Contracts:

• Long-term agreements between fuel producers and global airlines will secure demand and ensure revenue stability.
5. Digitalization and Process Optimization:

• Use of AI, IoT, and predictive analytics in production facilities will improve yield efficiency and reduce operational downtime.

6. Regional Export Hubs:
• Renewable-rich regions such as the Middle East, Chile, and Australia are likely to emerge as global exporters of e-kerosene to Europe and Asia.

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Competitive Landscape

The global e-kerosene market is moderately consolidated, with participation from both established energy companies and clean-tech startups. Strategic initiatives include technological collaborations, long-term offtake agreements, and joint ventures for large-scale PtL projects.

Key Players in the E-Kerosene Market:

• Gevo, Inc. (U.S.)
• Johnson Matthey (U.K.)
• Shell Aviation (U.K.)
• HY2GEN (Germany)
• Chevron Lummus Global LLC (California)
• eFuel Pacific Limited (New Zealand)
• Climeworks (Switzerland)
• Norsk e-fuel (Norway)
• HIF Global (U.S.)
• LanzaJet (U.S.)

Ashwin Arora
Fortune Business Insights™ Pvt. Ltd.
+1 833-909-2966
sales@fortunebusinessinsights.com

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