- The sustainable aviation fuel market surges with investor interest, reaching US$1,025.1 million in 2023.
- Macquarie Asset Management leads with a €175 million (US$189.3 million) investment in SkyNRG, aiming to drive SAF growth
Investors are driving the sustainable aviation fuel market, valued at US$1,025.1 million in 2023, towards significant growth, projecting a Compound Annual Growth Rate (CAGR) of 44.5% from 2024 to 2034. They are capitalising on increasing investment opportunities for SAF producers and suppliers.
This is propelled by growing climate change awareness and the imperative for decarbonisation. Macquarie Asset Management’s recent November 16, 2023 investment announcement exemplifies this trend.
Macquarie’s initial investment of up to €175 million (US$189.3 million) in SkyNRG through the Macquarie GIG Energy Transition Solutions (MGETS) Fund aims to propel SAF growth. Macquarie’s Green Investments team leads this investment.
This investment supports SkyNRG’s ambition to become a leading SAF producer. With plans to establish dedicated SAF facilities in Europe and the US by 2030.
The sustainable aviation fuel (SAF) industry experienced a mixed impact from the COVID-19 pandemic. Travel restrictions and lockdowns initially reduced flight operations, impacting SAF demand and production.
However, the pandemic highlighted aviation’s importance in environmental sustainability. They reignited interest in SAF as a critical sustainability component during recovery efforts.
Moreover, the pandemic spurred innovation and collaboration in the SAF sector. Companies accelerated research and development efforts to improve SAF production processes and reduce costs.
Collaborations between airlines, fuel producers, and governments formed to drive SAF adoption and support industry recovery with a focus on sustainability.
Overall, while the initial impact of COVID-19 posed challenges for the SAF industry, investors are catalysing resilience, innovation, and renewed commitment to sustainability. They position SAF as critical to the aviation sector’s long-term sustainability goals.