The European Commission has approved two Dutch schemes worth a combined $335 million to support sustainable aviation fuel (SAF) production and the development of new SAF projects as the European Union seeks to expand supplies of lower-carbon aviation fuels.
The schemes, approved under EU State aid rules, will provide funding for SAF production facilities as well as early-stage project development, including front-end engineering design studies, ESG News reported.
The Commission said the measures are aligned with the EU’s Clean Industrial Deal and will support the implementation of the ReFuelEU Aviation Regulation, which aims to increase the use of SAF in the aviation sector.
Projects receiving support are expected to produce around 285 kilotonnes of SAF annually, equivalent to about 350 million litres of kerosene or the fuel required for roughly 3,500 intercontinental flights.
One of the schemes will provide investment aid for SAF production facilities, while the other will fund preparatory activities for projects. Both will draw from the same overall funding allocation.
The aid will be provided as direct grants after beneficiaries meet specified project milestones. Applications will be assessed on a first-come-first-served basis, with the Commission requiring the process to be objective, transparent and non-discriminatory.
The schemes will operate from 2027 until 2031 at the latest, with up to five funding rounds possible depending on the availability of funds.
The Netherlands is targeting two SAF technologies that are at an earlier stage of commercial development. These include advanced bio-SAF produced through pathways other than the widely used Hydroprocessed Esters and Fatty Acids (HEFA) process, as well as synthetic aviation fuel, or e-SAF.
Dutch authorities expect early public support to help these technologies move towards commercialisation while maintaining technological diversity as demand for SAF grows across Europe.
Projects receiving production support will have to meet EU sustainability requirements applicable to renewable fuels of non-biological origin and advanced biofuels.
The Commission said the schemes would help strengthen SAF production capacity while supporting Europe’s broader efforts to reduce emissions from aviation and develop a competitive low-carbon industrial sector.
