EU Mandates Green Hydrogen-Based Aviation Fuel, Investment Decisions Still Pending
The EU has mandated airlines to use synthetic aviation fuels derived from green hydrogen, starting at 1.2% in 2030 and increasing to 35% by 2050, under the RefuelEU Aviation regulation. However, investment decisions for large-scale projects are crucial and currently lacking, with concerns about the high costs of e-SAF potentially hindering compliance with the 2030 requirements. Industry leaders warn that Europe will need to import significant amounts of e-SAF to meet future demand.
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The EU has established binding requirements for airlines to use synthetic aviation fuels (e-SAF) derived from green hydrogen, with mandates starting at 1.2% in 2030 and increasing to 35% by 2050 under the RefuelEU Aviation regulation. However, final investment decisions for large-scale projects are lacking.
Cyril Dufau-Sansot, CEO of Hy2gen, warns that without investment decisions in the next two years, there may not be enough e-SAF available to meet 2030 requirements. The main barrier is the uncertainty over who will cover the higher costs of e-SAF, which is estimated to be six to nine times more expensive than conventional fuel.
The EU's Sustainable Transport Investment Plan aims to mobilize billions for e-fuels, including auctions of up to 500 million euros. Hy2gen is developing projects in France and Germany, with production expected to start around 2030, but Dufau-Sansot emphasizes that Europe cannot meet the entire demand alone and will need to import significant amounts.
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