Concrete Chemicals receives 350-million euros in funding for eSAF project in Germany

Enertrag announced Jan. 29 that its joint venture with Zaffra, Concrete Chemicals GmbH, has secured 350-million euros (USD$418.9 million) in public funding to realize what Enertrag said will be the largest industrial-scale production facility for electro sustainable aviation fuel (eSAF) in Germany.

The funding has been approved at national and regional level, with the European Commission review now in its final phase.

Under the Climate Energy and Environmental Aid Guidelines framework, this funding is aimed at accelerating the build-out of a competitive clean-hydrogen economy while boosting the EU’s energy sovereignty.

This strategic project represents a major industrial milestone on the path to decarbonizing European aviation, according to Enertrag, marking a turning point in the race to meet climate targets in the transport sector.

The announcement highlights Germany’s and Brandenburg’s commitment to strengthening domestic eSAF production capacity, with the project planned in Schwedt as an industrial location.

As a cornerstone of the EU’s energy and climate strategy, Enertrag said Concrete Chemicals directly supports the blending mandates defined in the ReFuelEU aviation regulation.

“The project demonstrates how innovation, renewable energy and climate policy can be tightly integrated to support the long-term development of European aviation fuel supply chains, while contributing to regional economic development and high-value industrial jobs,” Enertrag stated.

Using biogenic CO2 and renewable hydrogen, Concrete Chemicals will produce synthetic kerosene through a power-to-liquid (PtL) process.

The consortium plans to source local CO2 through cooperation with LEIPA Georg Leinfelder GmbH, a leading manufacturer of recycled paper and cardboard products based in Schwedt.

The planned production capacity of more than 37,000 metric tons (30,000 tons of eSAF and 7,000 tons of eNaphtha) per year is expected to result in an annual reduction of at least 100,000 tons of fossil CO2 for the aviation industry.

“With Concrete Chemicals, we are showing that the energy transition does not stop at electricity—it is now taking off in the skies,” said Gunar Hering, CEO at Enertrag. “Our expertise in renewables enables the cost-efficient use of green hydrogen to power the aviation fuels of the future.”

The project is designed in alignment with Germany’s emerging hydrogen-infrastructure planning and the objectives of the IPCEI hydrogen framework.

Its location and system design allow for future connection to the national Hydrogen Core Network (H2-Kernnetz), subject to the completion of relevant infrastructure and regulatory approvals, supporting scalability and long-term integration into the European hydrogen market.

The project will improve the resilience of Germany and Europe’s energy sector, making the country more resilient to future shocks, Enertrag stated.

This initiative, according to the company, delivers measurable impacts at both the EU and German state level:

• It will support the delivery of the EU blending submandate on eSAF (starting at 1.2 percent) in 2030, while playing a vital role in fulfilling EU climate targets.

• It will support the 55 percent reduction in greenhouse-gas (GHG) emissions by 2030 and full climate neutrality by 2050.

• The initiative will contribute to the German federal government’s sustainable aviation strategy and support the delivery of the German government’s blending requirements for eSAF under ReFuelEU in 2030.

“Zaffra and its partners are delivering the kind of frontier industrial innovation Europe urgently needs,” said Jan Toschka, CEO of Zaffra. “This project proves that it is possible to marry innovation with energy resilience, climate ambition and economic competitiveness—all with European technology, German infrastructure and Brandenburg-based jobs.”

The technical-planning phase begins immediately, according to Enertrag, with a final-investment decision (FID) targeted by 2027 and production expected to support the 2030 mandates.