eFuels in aviation

With 13 %, aviation makes up for a significant share of EU transport emissions. Although technological improvements have already led to increased efficiency, the demand for flights keeps increasing. In order to make flying sustainable, the root cause of emissions must therefore be tackled: The fossil fuel. By gradually switching to sustainable aviation fuel (SAF), which include both bio-based as well as synthetic fuels, aviation can reduce its emissions substantially and pave the way to climate-neutral flying.

eFuels, synthetic fuels produced using green energy, offer a promising solution to this challenge. Thanks to the availability of renewable energy, they are easily scalable. Moreover, eFuels can be blended at high ratios with conventional fuels, positively impacting air quality due to their favorable combustion properties. Already, blending of SAF and fossil kerosene of up to 50% is permitted, with countless companies in aviation already working on certifying 100% SAF usage.

ReFuelEU Aviation

The ReFuelEU Aviation regulation represents a major opportunity to defossilize aviation. It requires jet fuel suppliers in the EU to guarantee a blending of at least 2% sustainable aviation fuels (SAFs) in 2025, which are defined in the Renewable Energy Directive (RED) as advanced biofuels from wastes and residues, renewable fuels of non-biological origin (RFNBO) as well as low-carbon fuels. In 2030, the quota increases to 6% and includes a 1.2% sub-quota for synthetic fuels in order to specifically support the production of eFuels. The quota increases further to 70% SAFs, with a minimum of 35% synthetic fuels, in 2050.

The ReFuelEU Aviation regulation gives the aviation industry as well as fuel producers and suppliers a long-term roadmap for the ramp-up of SAF. In the coming legislative period, the aim must therefore be to address remaining issues in implementation and to adapt it to the 2040 climate targets.

Guaranteeing an offtake market for eKerosene with quotas

The main obstacle to widespread eFuel usage is their higher cost compared to fossil as well as bio-based sustainable aviation fuels, making policy measures like the ReFuelEU Aviation regulation essential to bring these fuels to market.

Already now, projections on eSAF production show the impact of these quotas: In 2030, the first eKerosene quotas from the ReFuelEU Aviation regulation will begin with a supply obligation of 1.2%, which translates to 0.6 million tonnes of eKerosene. A significant ramp-up in production is anticipated starting from 2030: According to the SAF Monitor, the eSAF production for 2030 is expected to reach 5.9 million tonnes per year, surpassing the mandatory average requirement of the ReFuelEU Aviation regulation. Realizing even a share of the announced eSAF projects could enable the EU to meet their early eSAF targets and lay the foundation for the subsequent scaling up of production necessary for the following quotas.

Global competitiveness and SAF introduction must go hand in hand

The eFuel Alliance welcomes the ReFuelEU Regulation for aviation as an important step towards the decarbonization of aviation and as an important instrument to support the necessary market introduction of synthetic fuels and to promote further investment in renewable fuels. However, it is important to point out that the aviation sector is a global sector and its competitiveness must be maintained at international level in order for the European aviation industry to thrive.

There are several ways to support this transition. 20 million SAF allowances under the EU Emissions Trading Scheme (EU ETS) will be available to airlines to cover the cost difference between SAF and fossil fuels between 2024 and 2030, which the eFuel Alliance has lobbied for together with the aviation industry. However, these allowances only apply to flights under the EU Emissions Trading Scheme, i.e. flights within the EU, and are difficult to calculate for airlines and fuel manufacturers alike. This highlights the importance of financial incentives and support on the production side of eFuels, especially in the early stages, to close the cost gap between fossil fuels and eFuels, and instruments such as the Hydrogen Bank and the Innovation Fund are crucial for this purpose. Such financial incentives for production are essential to ensure that domestic transportation companies and major European hubs operating in a globally competitive environment are not unduly burdened by the ambitious SAF deployment targets. The recovery of one industry must not come at the expense of the other - only if competitiveness and green transition go hand in hand will we be able to successfully make the transport sector climate neutral.