Panel Highlights Need for Demand Tools and Standard Designs in Europe's e-SAF Development
At the Hyvolution event in Paris, industry leaders underscored the necessity for demand-side tools and standardized designs to advance the development of hydrogen-based sustainable aviation fuel (e-SAF) in Europe. Despite the ReFuelEU Aviation mandate driving demand, no projects have reached final investment decision due to a lack of long-term contracts, with developers seeking 15-20 year offtake agreements. Standardized plant designs, exemplified by Rely and Verso Energy's identical e-SAF plants in France, are deemed essential for reducing costs and risks, potentially attracting lenders through integrated structures.
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At the Hyvolution event in Paris, industry leaders emphasized that Europe's expansion of hydrogen-based sustainable aviation fuel (e-SAF) requires demand-side tools for securing long-term offtake and standardized plant designs to reduce costs and risks. The ReFuelEU Aviation mandate is seen as a key driver for e-SAF demand, yet no European project has reached final investment decision (FID) due to the lack of long-term contracts.
To advance projects, developers require 15-20 year offtake agreements despite existing subsidies. Discussions suggested that the EU's planned double-sided auctions and national revenue-stabilizing mechanisms could further support early movers.
Standardized designs are critical for efficiency, with Rely and Verso Energy developing four identical e-SAF plants in France, each with a capacity of 80,000 t/yr. Integrated structures that include power supply and methanol facilities may also appeal to lenders by lowering counterparty risks.
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