The European Commission has approved a €290 million ($338.61 million) Dutch state aid package to support sustainable aviation fuel (SAF) production and use, it said on July 30.
The two schemes are designed to increase both the supply of SAF and demand for the fuel. They will have a common budget but will provide support at different stages of SAF projects, Biomass Magazine reported.
One scheme will offer investment support for SAF production facilities, while the other will cover some of the costs of preparing projects, including front-end engineering design studies.
Projects using hydroprocessed esters and fatty acids (HEFA) technology will not qualify for the funding. The schemes will instead focus on advanced SAF made without HEFA technology and synthetic aviation fuels, also known as e-SAF.
Funding will be provided through direct grants, with payments made after projects reach agreed milestones. The Netherlands plans to hold up to five funding rounds between 2027 and 2031.
The European Commission estimates that the schemes could support projects capable of producing about 285,000 tonnes of SAF a year.
That volume is equivalent to around 350 million litres of kerosene, or enough fuel for about 3,500 intercontinental flights.
