EU Commission approves state aid package to accelerate SAF production

The European Commission has approved two Dutch State aid schemes worth €290 million to support the development and production of sustainable aviation fuels (SAF), helping advance the EU’s Clean Industrial Deal and ReFuelEU Aviation objectives. The funding will support SAF production investments and preparatory work such as FEED studies, targeting non-HEFA advanced bio-SAF and synthetic e-SAF technologies. Supported projects are expected to produce around 285 kilotonnes of SAF per year, equivalent to 350 million litres of kerosene. Running from 2027 to 2031, the schemes will provide direct grants linked to project milestones, with the Commission finding the measures necessary, proportionate and capable of accelerating commercialisation while maintaining fair competition across the EU. The European Commission has approved two Dutch State aid schemes worth a combined €290 million to accelerate the development and production of sustainable aviation fuels (SAF), marking another step towards decarbonising Europe’s aviation sector. Approved under EU State aid rules, the measures are designed to support the objectives of the Clean Industrial Deal and the ReFuelEU Aviation Regulation by increasing both the supply of and demand for SAF while helping move the aviation industry towards climate neutrality. The funding package comprises two complementary schemes supporting projects at different stages of development. One will provide investment aid for SAF production facilities, while the second will fund preparatory activities, including front-end engineering design (FEED) studies, helping projects progress towards commercial deployment. Together, the schemes are expected to support projects capable of producing around 285 kilotonnes of SAF annually — equivalent to approximately 350 million litres of conventional kerosene, enough to fuel around 3,500 intercontinental flights each year. Funding will be allocated on a first-come, first-served basis through objective, transparent and non-discriminatory procedures. Aid will be paid as direct grants linked to the completion of project milestones, with the schemes operating between 2027 and 2031. Up to five funding rounds are expected during that period, subject to budget availability. The support targets two emerging SAF production pathways considered critical to expanding Europe’s technology base: advanced bio-SAF produced through non-Hydroprocessed Esters and Fatty Acids (non-HEFA) processes, and synthetic aviation fuels, or e-SAF. By backing both technologies, the Netherlands aims to accelerate their commercialisation while promoting greater technological diversity across the aviation fuel market. Projects receiving production support will be required to demonstrate compliance with EU sustainability requirements, including the criteria for renewable fuels of non-biological origin (RFNBOs) or the sustainability standards for advanced biofuels. In its assessment, the Commission concluded that the schemes are necessary and proportionate, noting that the supported studies and investments would be unlikely to proceed without public funding. It also found that the measures include sufficient safeguards to minimise distortions to competition and trade within the EU while delivering significant environmental benefits. The approval was granted under Article 107(3)(c) of the Treaty on the Functioning of the European Union, together with the 2022 Climate, Environmental Protection and Energy Aid Guidelines (CEEAG) and the 2025 Clean Industrial Deal State Aid Framework (CISAF).