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SAF Market Set for Explosive Growth as Alternative Fuels Reshape Transport Energy Landscape

By MGN Editorial•June 11, 2026 at 12:00 PM

The sustainable aviation fuel market is projected to surge from $4.86 billion in 2026 to $31.45 billion by 2031, signalling broader momentum in the decarbonisation of transport fuels with implications for the maritime sector.

## SAF Market Poised for 45% Annual Growth Through 2031 The sustainable aviation fuel (SAF) market is on course for dramatic expansion over the next five years, according to a new report from MarketsandMarkets™, with the sector forecast to grow from USD 4.86 billion in 2026 to USD 31.45 billion by 2031 — representing a compound annual growth rate (CAGR) of 45.3%. While the headline figures relate directly to the aviation industry, the trajectory carries significant implications for the broader alternative fuels ecosystem, including maritime shipping, where operators and fuel producers are navigating parallel pressures to decarbonise fleets and comply with tightening international emissions regulations. The rapid scaling of SAF production infrastructure — drawing on feedstocks such as waste oils, agricultural residues, and synthetic pathways including power-to-liquid technologies — is expected to drive down unit costs and accelerate investment in the refining and logistics networks that serve multiple transport sectors. For shipping, this matters: many of the same bio-based and synthetic fuel production facilities under development for aviation have direct relevance to the production of bio-methanol, bio-LNG, and other marine alternative fuels. ### Shared Infrastructure, Shared Opportunity Industry analysts have increasingly noted the convergence between aviation and maritime decarbonisation strategies. Investments in green hydrogen, waste-to-fuel processing, and carbon capture technologies are being pursued by energy majors and independent producers serving both sectors simultaneously. As SAF demand stimulates upstream investment, maritime fuel buyers may benefit from increased feedstock availability and more competitive pricing for bio-based marine fuels. The MarketsandMarkets™ report, which draws on 190 market data tables, underscores the scale of capital now flowing into alternative fuel development — a trend that port authorities, bunker suppliers, and shipowners will be monitoring closely as the International Maritime Organization's 2030 and 2050 emissions targets draw nearer. ### Broader Energy Transition Context Separately, Grounded Lithium Corp. (TSXV: GRD) issued a spring 2026 operational update covering its oil and gas activities and its ongoing partnership with Denison Mines Corp., reflecting continued activity across the conventional and critical minerals energy supply chain — sectors that underpin both traditional bunker fuel production and the battery technologies being explored for short-sea and harbour vessel electrification. Together, these developments reinforce a consistent theme across the energy sector: the transition away from fossil fuels is accelerating across all transport modes, with investment, regulation, and market forces increasingly aligned in the same direction.
#sustainable fuels#decarbonisation#alternative fuels#SAF#bunker fuel#green shipping#IMO 2050#energy transition

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