GERMANY, AUSTRIA, AND LUXEMBOURG LAUNCH JOINT E-SAF FUNDING SCHEME
Last week, Germany, Austria, and Luxembourg launched a joint funding scheme to accelerate the development and market uptake of electricity-based sustainable aviation fuels (e-SAF) in Europe. The three countries, which are founding members of the eSAF Early Movers’ Coalition, will introduce a double-sided auction mechanism bringing together e-SAF producers and buyers.
The mechanism aims to address the investment gap between producers and buyers. Producers require long-term offtake agreements to support investment decisions, while buyers typically enter into shorter-term fuel contracts. Under the scheme, an intermediary will match supply and demand, with public funding covering the remaining price gap between the two sides.
Germany will provide up to €2 billion, while Austria and Luxembourg will each contribute up to €60 million. The subsidised e-SAF volumes will be placed on the markets of the three countries in proportion to their respective financial contributions. The scheme aims to support new production capacity while establishing more competitive market conditions for e-SAF.
The joint funding programme is subject to approval by the European Commission under EU State aid rules.
More information is available here.