Abstract:

A substantial volume of sustainable aviation fuels (SAF) is required to mitigate carbon emissions from Europe's aviation industry. Currently, the sole commercially accessible Sustainable Aviation Fuels (SAF) are Hydroprocessed Esters and Fatty Acids (HEFA) derived from fats and oils; however, the waste oils eligible for meeting EU SAF requirements are restricted. To achieve future objectives, particularly in 2035 and thereafter, sophisticated solutions will be required: synthetic e-fuels and cellulosic biofuels derived from agricultural residues and trash. These fuels presently incur costs four to 10 times greater than traditional jet fuel.

This webinar introduces a novel ICCT techno-economic analysis on how the integration of existing national and EU policy tools could mitigate this cost disparity. ICCT experts analyze various strategies in the Netherlands case study and evaluate their efficacy in reducing the SAF cost disparity. These initiatives encompass capital cost assistance in accordance with the most recent state aid regulations, subsidies from the EU Hydrogen Bank, and fuel credits for SAF co-products derived under the Renewable Energy Directive. The revenue certainty measures included in the European Commission’s 2025 Sustainable Transport Investment Plan are not evaluated; however, the findings could guide the necessary level of revenue assistance.