T&E: Unlocking eSAF’s potential for EU competitiveness, energy independence

Sustainable aviation fuel (SAF), including eSAF, plays a crucial role in decarbonizing aviation.

According to the European Federation for Transport and Environment (T&E), however, despite a strong regulatory framework under the Fit for 55 package and ReFuelEU aviation, eSAF projects in the EU have yet to reach final-investment decision (FID).

This is due to high capital and operational costs, a lack of long-term offtake agreements and insufficient revenue certainty—a market failure that existing EU mechanisms have not been able to resolve.

The Sustainable Transport Investment Plan presents a unique and timely opportunity to correct this imbalance, T&E stated.

“By focusing its support on the most strategic SAF pathway—eSAF—the STIP can catalyze the deployment of clean aviation fuels while boosting the EU’s industrial competitiveness, energy independence and jobs,” the federation stated.

“To do so, the STIP should embed a comprehensive mechanism, such as a European Hydrogen Clearing House, which would operate through double-sided auctions matching fuel producers and buyers (e.g. airlines) while ensuring price stability and demand aggregation,” the organization explained.

According to T&E, this would de-risk production through long-term contracts and contract for differences for eSAF, enabling scale-up while ensuring alignment with the EU’s competitiveness goals.

“Prioritizing eSAF through the STIP is not only a climate imperative, it is a strategic investment in Europe’s position as a global leader in sustainable aviation fuels and clean energy,” T&E said.

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