How traders can win in sustainable fuels
one another and how to keep pace with advances. For example, traders that have a good grasp of the shifting market balances but lack an understanding of the pace of investment in new technology platforms could be at a disadvantage. Given the number of imbalances expected to arise across product categories, traders must develop or enhance several core capabilities to be competitive.
The sustainable-fuel market is poised to ramp up significantly in both scale and complexity. Five interdependent areas will shape the market in the coming years (Exhibit 5). To better identify value creation opportunities and risk, market participants will need to understand how these areas influence
Exhibit 5 Companies in the dynamic sustainable-fuel market can derive value by understanding the interdependencies in five key areas.
Market interdependencies Opportunities and risks
Shifting market balances
Price-clearing point
Scale and liquidity
Changing infrastructure
Scale and pace of investment
Extraordinarily dynamic market
Cost curve maturity
Economic forcing
Technology learning curves and breakthroughs
Subsidy impact
Evolving regulation
McKinsey & Company
Accelerating the journey to net zero
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