KLM endorses Wennink report, calls for national SAF fund in Netherlands

Photo: KLM

KLM announced in December that it supports the call in the Wennink report, “The Route to Future Prosperity,” for the government to invest in a national sustainable aviation fuel (SAF) fund.

Such a fund would enable the Netherlands to accelerate the production of alternative aviation fuels and make them more affordable, thereby accelerating the sector’s sustainability.

Real progress can only be achieved if government and industry work together and if the government takes a more active role.

KLM urged policymakers to adopt this recommendation.

KLM said it fully endorses the report’s conclusions about the crucial importance of aviation to safeguarding prosperity and maintaining the Netherlands’ innovative ecosystem.

Aviation and Schiphol are crucial to the Netherlands’ economic strength: they connect the Netherlands to the world and are essential for trade, employment and its international competitiveness.

“It is therefore vital that we invest collectively in a future-proof aviation sector rather than restrict it or impose additional national charges,” KLM stated. “Doing so would undermine the Netherlands’ competitive position and the global connectivity on which our prosperity depends.”

KLM said it is investing significantly in cleaner, quieter and more fuel-efficient operations.

Alongside fleet renewal, SAF is currently one of the most effective means of reducing aviation CO2 emissions, cutting emissions by at least 65 percent across its entire lifecycle compared with fossil kerosene.

KLM blends more SAF each year than required under the European mandate and has entered into a long-term offtake agreement to support the development of the Netherlands’ first dedicated SAF production facility in Delfzijl.

To achieve the joint ambition of a 14 percent SAF blend in the Netherlands by 2030, however, alternative fuels must become more affordable and widely available, KLM pointed out.

Just as with wind and solar energy, government investment can make a real difference in securing the future of sustainable aviation, the airline stated.

“We fully support the Wennink report’s conclusion that aviation is vital to the Netherlands’ future prosperity,” said KLM CEO Marjan Rintel. “To maintain that position and accelerate our sustainability efforts, the government must invest rather than introduce additional national charges. A national SAF fund would allow government and industry to work together to drive change. KLM is already investing in alternative fuels, but only with an active government role can we achieve the necessary scale and affordability. Now is the moment to position the Netherlands as a leader in sustainable aviation.”

A national SAF fund: Paving the way for SAF made in Holland

The creation of a national SAF fund aligns with European efforts to accelerate the transition to sustainable fuels, including the Sustainable Transport Investment Plan, and would make “SAF Made in Holland” a reality.

In KLM’s view, a national SAF fund should focus on the following:

• Making SAF affordable for airlines—Bridge the price gap between SAF and fossil kerosene through an incentive fund, enabling airlines to actually use SAF and encouraging them to choose sustainable options. Based on current prices, an annual investment of 60-million euros (USD$70.6 million) could already deliver an additional 1 percent SAF blend.

• Accelerating production and access to raw materials—Improve access to sustainable raw materials for SAF production and remove barriers to accelerated SAF infrastructure development. This would allow the Netherlands to make significant progress in scaling up domestic production.

• Investing in eSAF innovation to become a European leader—Support the development of next-generation eSAF technologies and take a leading role in European innovation initiatives. The Dutch government has already taken a promising first step by joining a European pilot within the STIP program.

The national SAF fund could be financed through the revenues from the existing Dutch aviation tax.

This would allow the Netherlands, and Dutch aviation, to take the lead in scaling up alternative aviation fuels and help ensure that the national ambition of a 14 percent SAF blend by 2030 remains within reach.