The European Commission has approved two Dutch support schemes for the production of sustainable aviation fuel. Together, the schemes have a budget of 290 million euros. A notable aspect of the decision is the choice to support only those production routes that have been the hardest to get off the ground so far, including advanced biofuel from residual streams.
The schemes focus on two technological pathways. The first is advanced bio-SAF that is not produced via the HEFA process, the route in which esters and fatty acids are converted through hydrotreatment. The second is synthetic aviation fuel based on renewable hydrogen and carbon, designated as e-SAF. According to the Dutch notification, support for both pathways contributes to technological diversity in the fuel market in the longer term.
The two schemes share the same budget but cover different project phases. One offers investment support for the production itself. The other reimburses the costs of preparatory work, including front-end engineering studies. It is precisely this preparatory phase that is considered difficult to finance in the sector, because investors find it hard to estimate what an installation will cost before the detailed design is ready.
Terms and duration
The support consists of direct grants that are only paid out once project milestones have been reached. Awards are made on a first-come, first-served basis, via a procedure that the Commission considers objective, non-discriminatory, and transparent. The schemes run from 2027 to 2031 at the latest, with a maximum of five funding rounds, depending on available funds.
Companies receiving support for the production itself must demonstrate that they meet the European criteria for renewable fuels of non-biological origin, or the European sustainability criteria for advanced biofuels. These criteria stem from the 2018 Renewable Energy Directive and set requirements regarding greenhouse gas reduction across the entire value chain, among other things.
The Commission estimates that the supported projects will together produce approximately 285 kilotons of sustainable aviation fuel per year. This corresponds to 350 million litres of kerosene, enough for approximately 3.500 intercontinental flights.
Assessment against the State aid framework
The assessment was carried out pursuant to Article 107(3)(c) of the Treaty on the Functioning of the European Union, in conjunction with the 2022 Climate, Environment and Energy Aid Guidelines and the 2025 Clean Industrial Deal State Aid Framework. The Commission held that the schemes are necessary and appropriate and have an incentive effect, as the studies and investments concerned would not take place without State aid. It also concluded that the Netherlands has incorporated sufficient safeguards to limit distortion of competition and trade within the Union.
The decision aligns with the ReFuelEU Aviation Regulation, which requires fuel suppliers to supply an increasing share of sustainable aviation fuel. This obligation is already in effect, while production capacity for non-HEFA routes in Europe remains limited. The arrangements are registered under case numbers SA.121979 and SA.123605.
Source: European Commission
Photo: chalabala, Adobe Stock
