Germany, Austria and Luxembourg have launched a joint funding scheme to speed up the market ramp-up of electricity-based sustainable aviation fuel, or eSAF, for use in European aviation. Germany will provide up to €2 billion, while Austria and Luxembourg will each contribute up to €60 million under a state-backed auction mechanism designed to narrow the price gap between producers and buyers.
The programme uses a double-sided auction model that brings fuel makers and buyers into the same process, with public support covering the difference where market prices do not yet meet. The subsidised volumes are intended for the three participating markets and will be allocated in line with each country’s funding share. The initiative is aimed at helping new eSAF production move towards commercial scale and supporting demand for synthetic jet fuel across the region.
The scheme still requires approval from the European Commission under state aid rules before it can move ahead.