{"id":8246,"date":"2025-12-05T18:05:45","date_gmt":"2025-12-05T18:05:45","guid":{"rendered":"https:\/\/www.greenairnews.com\/?p=8246"},"modified":"2026-02-16T14:45:18","modified_gmt":"2026-02-16T14:45:18","slug":"eu-states-to-mobilise-500-million-euro-support-for-early-mover-esaf-production-startups","status":"publish","type":"post","link":"https:\/\/www.greenairnews.com\/?p=8246","title":{"rendered":"EU states to mobilise 500 million euro support for early-mover eSAF production startups"},"content":{"rendered":"\n

The European Union has launched the eSAF Early Movers Coalition, which brings together member states that have committed to scaling up the production of synthetic aviation fuels (eSAF). Eight states have so far announced their participation \u2013 Austria, Finland, France, Germany, Luxembourg, Netherlands, Portugal and Spain \u2013 with the intention of mobilising at least \u20ac500 million ($580 million) for large-scale eSAF projects. The coalition members will seek to provide financial support for the organisation of double-sided auctions \u2013 a revenue certainty mechanism for eSAF producers \u2013 with the first auction planned for 2026. The initiative follows the recent release by the European Union of its Sustainable Transport Investment Plan (STIP), a set of measures to accelerate investment in the energy transition of the aviation and maritime sectors.<\/strong><\/p>\n\n\n\n

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The eight states announced their coalition participation<\/a> in the margins of the Transport Council in Brussels and said work would begin immediately \u201cand remains open to all interested member states\u201d.<\/p>\n\n\n\n

Commented Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism: \u201cWith the launch of this coalition, we are strengthening the EU aviation sector\u2019s efforts to reduce emissions. I welcome the dedication of the participating member states. Their financial contributions will stimulate the needed investments and support swift deployment of eSAF in the EU.\u201d<\/p>\n\n\n\n

Under the ReFuelEU Aviation<\/a> regulation, eSAF must account for 1.2% of fuel supplied at EU airports by 2030 and 35% by 2050, a target seen by some as extremely ambitious. To meet targets, 6.8 million tonnes of aviation and maritime e-fuels will be needed by 2035, says the Commission.<\/p>\n\n\n\n

With more than 40 eSAF commercial projects already planned in the EU, none has yet reached the final investment decision (FID) stage, although most are still in very early development. The Commission has recognised this as \u201ca market failure\u201d.<\/p>\n\n\n\n

The STIP<\/a> measures are expected to mobilise at least \u20ac2.9 billion until the end of 2027 for the two sectors. This includes support for the production of hydrogen for sustainable aviation and maritime fuels through the European Hydrogen Bank, R&I projects support under Horizon Europe and mobilisation of \u20ac153 million for synthetic aviation fuel projects under the Innovation Fund.<\/p>\n\n\n\n

\u201cThis ambitious plan shows the Commission\u2019s firm commitment to scaling up renewable and low-carbon fuels in aviation and waterborne transport,\u201d said Tzitzikostas at the STIP\u2019s unveiling last month. \u201cSuccess will depend on close cooperation among member states, industry, financiers and civil society to turn this challenge into a strategic opportunity for Europe.<\/p>\n\n\n\n

\u201cThe STIP sends a clear signal to investors: our targets are stable, and the Commission will support the sector throughout the transition. The next two years are important. Investment decisions and construction must start by 2027, or we will miss the 2030 targets. It is as simple as that.\u201d<\/p>\n\n\n\n

The Commission says double-sided auctions will offer producers long-term revenue certainty and provide buyers with competitive, short-term contracts.<\/p>\n\n\n\n

The Project SkyPower<\/a> collaboration, whose mission is to pave the way for the first large-scale eSAF plants in Europe to reach final investment decision, released a report a year ago that advocated the double-sided mechanism. The intention would be to manage the risk of fuel offtakers, who prefer short-term contracts to reduce future price risk and supply volume risk, against the requirement of producers and financiers that require long-term offtake contracts with creditworthy offtakers to ensure revenue certainty and bankability for their project.<\/p>\n\n\n\n

A government-funded intermediary acts as the counterparty for both the offtaker and the eSAF supplier, which covers all credit risk for the producer and future price risk for the offtaker. The intermediary is capitalised with public funding from, for example, revenues collected from penalties or from other existing industry-generated revenues.<\/p>\n\n\n\n

The move has been welcomed by industry representatives.<\/p>\n\n\n\n

\u201cToday, we have seen eight member states show courage and step up to the plate,\u201d commented Ourania Georgoutsakou, Managing Director of Airlines for Europe<\/a>, in a LinkedIn post. \u201cThe transition to net-zero aviation is a team sport, and we need more players on the pitch to make a functional SAF market a reality.\u201d<\/p>\n\n\n\n

Added Laurent Donceel, Director, Transport and Industrial Policy & Sustainability at Hydrogen Europe<\/a>: \u201cThe launch of the eSAF First Movers Coalition is a statement of resilience and unity, and sets a path which other member states should follow. Through their joint implementation of the recommendations of the Sustainable Transport Investment Plan, these eight countries are accelerating sustainable aviation and strengthening Europe\u2019s ability to adapt and thrive in the face of global challenges, turning innovation into lasting climate leadership.<\/p>\n\n\n\n

\u201cWe hope that political support will swiftly turn into real action with the launch of double-sided auctions that will help airlines sign offtake agreements and low-emission aviation projects reach final investment decision.\u201d<\/p>\n\n\n\n

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Photo: Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism, unveils the eSAF Early Movers Coalition<\/strong><\/p>\n\n\n\n

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Christopher Surgenor<\/strong>
Editor<\/p>\n\n\n

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