The Netherlands is to provide up to €290 million to support the development and production of sustainable aviation fuels (SAF), after the European Commission approved two
funding schemes under EU state aid rules.
The schemes are designed to help accelerate the aviation sector's shift away from fossil fuels and support the EU's wider targets for industrial decarbonisation.
The Dutch government will use the funding to back SAF projects at different stages of development. One scheme will provide investment aid for production facilities, while the other will help cover preparatory costs, including front-end engineering design studies.
Together, the schemes are expected to support projects capable of producing about 285,000 tonnes of SAF a year. That is equivalent to around 350 million litres of kerosene, or enough fuel for approximately 3,500 intercontinental flights.
Funding will be allocated on a first-come, first-served basis under rules designed to ensure the process is objective, transparent and non-discriminatory.
The programmes will focus on two emerging types of sustainable aviation fuel: advanced biofuels that are not produced using the hydroprocessed esters and fatty acids (HEFA) process, and synthetic aviation fuels, known as e-SAF.
The Dutch authorities say supporting both technologies at this stage could help bring them closer to commercial viability while maintaining technological diversity in the future SAF market.
The aid will be provided through direct grants linked to the completion of project milestones. The schemes will operate between 2027 and 2031, with up to five funding rounds planned, depending on the money available.
Companies receiving production funding will have to demonstrate that their fuels meet EU requirements for renewable fuels of non-biological origin (RFNBOs) or the bloc's sustainability criteria for advanced biofuels.
The Commission assessed the measures under Article 107(3)(c) of the Treaty on the Functioning of the European Union, as well as the EU's 2022 guidelines on state aid for climate, environmental protection and energy and the 2025 Clean Industrial Deal State aid Framework.
It concluded that the Dutch schemes were necessary and appropriate to encourage SAF production and that public funding would provide an incentive for investments and preparatory work that might otherwise not go ahead.
The Commission also said safeguards had been included to limit the schemes' potential impact on competition and trade within the EU. Aid levels will be restricted according to the eligible-cost limits set out in the relevant EU state aid rules.
The funding is expected to deliver environmental benefits and contribute to the EU's Clean Industrial Deal, while also supporting the objectives of the ReFuelEU Aviation rules, which aim to increase the supply and use of sustainable aviation fuels across Europe.
The Commission has therefore approved both Dutch schemes under EU state aid rules. Photo by CEphoto, Uwe Aranas, Wikimedia commons.