The oil & gas sector is accelerating its downstream transformation, with a growing focus on low-carbon fuel production through co-processing of existing refinery units. According to a new report, companies are increasingly adopting pathways that integrate renewable diesel, synthetic fuels and sustainable aviation fuel (SAF) into traditional refining operations — a move expected to deliver a robust compound annual growth rate (CAGR) of 19 % for SAF between 2025 and 2030.

Despite some retrenchment in broad renewables investment, major operators are repositioning refining assets to handle mixed‐feedstock input and retrofit their units for clean-fuel output. The co-processing approach offers a faster, lower-cost route to decarbonisation compared with building entirely new facilities.

For downstream and refining-technology stakeholders, this trend highlights three actionable themes: (1) retrofitting existing hydro-treaters and cracking units for renewable feedstocks, (2) building flexible processing lines that switch between fossil and bio-based inputs, and (3) strengthening governance and tracking systems for ESG-compliant fuel production.