Germany is planning to impose a penalty of €17,000 per tonne for fuel suppliers who fail to meet their synthetic aviation fuel (e-SAF) quotas, as part of its draft legislation to implement the EU’s revised Renewable Energy Directive (RED III). The proposed fine, revealed in a draft seen by Argus, is aimed at enforcing compliance with upcoming EU rules that require a growing share of hydrogen-based fuels in aviation, reports Argus.
The EU’s ReFuelEU Aviation regulation will require fuel suppliers to begin blending e-SAF starting in 2030. From 2030 to 2031, at least 1.2% of the total aviation fuel supply must be e-SAF on average, with a minimum of 0.7% each year. The blending requirement will increase over time — reaching 2% in 2032, 5% in 2035, and eventually 35% by 2050.
The EU mandates that national penalties for non-compliance be set at no less than twice the price difference between e-SAF and conventional jet fuel. Based on reference prices released earlier this year by the European Union Aviation Safety Agency, the minimum penalty should be around €13,922 per tonne. Germany’s proposed fine of €17,000 would be significantly higher than this minimum and could be adjusted in the future.
E-SAF is made using renewable or low-carbon hydrogen, including hydrogen produced via nuclear-powered electrolysis. While the direct use of hydrogen in aviation is also permitted under EU legislation, this is widely regarded as a longer-term solution.
Germany had previously considered setting its own national e-SAF targets but abandoned those plans following the adoption of the EU-wide rules.
Most e-SAF projects in Europe and beyond are still in early stages of development. Industry stakeholders have long called for clearer regulations, especially around penalties and incentives, to help secure final investment decisions and scale up production.
