PARIS—European aviation industry stakeholders are welcoming the adoption of the ReFuelEU Aviation Regulation that paves the way for mandates aiming to boost production of sustainable aviation fuel (SAF) and bring down prices.
SAF is seen as the best short-term way to decarbonize aviation, but production is limited and prices prohibitively high. Lawmakers in Brussels have been engaged in a lengthy process to bring in legislation to mandate SAF uptake and the European Parliament finally voted Sept. 13 to adopt the ReFuel EU Aviation Regulation.
In a joint statement after the vote, Airlines for Europe (A4E), airports association ACI Europe, aerospace and defense manufacturers’ group ASD, air navigation service providers association CANSO Europe, and regional airlines association ERA said, “Today’s adoption of the ReFuelEU legislation lays the foundation for ambitious blending shares of SAF in aviation fuel.”
The aviation industry has long argued that airlines are ready to use more SAF—with many already touting targets that go beyond the ReFuelEU mandates—but a lack of availability holds them back.
While the new legislation, mostly due to come into force by Jan. 1, 2024, should help by providing the demand certainty needed to spur investments, progress is already being made.
Earlier in September, VARO Energy said it would construct a large-scale SAF manufacturing facility at the Gunvor Energy Rotterdam site, investing $600 million. The facility will have a total feedstock capacity of 350 kt p.a., with a SAF production capacity of 245 kt p.a. alongside a mixture of bio-naphtha and bio-propane. Production is expected to begin by the fourth quarter of 2026.
“While EU investors and industrial partners have now received a clear signal to unleash their investments, the EU shall ensure that the required uptake of SAF consumption will boost the European SAF industry,” the associations said. “The international race to become a SAF leader has started, and the ReFuelEU Aviation Regulation should therefore be complemented with further incentives to scale up SAF production and uptake in Europe through their inclusion into the EU Net Zero Industry Act (NZIA) as part of the strategic net-zero technologies, mirroring the U.S. approach in the Inflation Reduction Act (IRA).”
They also said support for SAF should be global. “A robust worldwide climate policy framework for SAF is needed,” the associations said. “The November 2023 ICAO Conference on Aviation Alternative Fuels (CAAF/3) is a unique opportunity to put in place the right milestones and to deliver ambitious targets for SAF deployment worldwide.”
