Commission approves €290 million Dutch State aid to support SAF development

The Dutch schemes

The Netherlands notified the Commission of its intention to introduce two schemes to support projects that produce SAF at different stages of their development. Although the schemes share a common budget, one provides investment aid for SAF production, while the other covers the costs of preparatory works for SAF projects including front-end engineering design studies. The approved schemes will support projects estimated to produce around 285 000 tpy of SAF, the equivalent of 350 million l of kerosene, or around 3500 intercontinental flights.

The aid will be awarded on a first-come-first-served basis through schemes that are objective, non-discriminatory, and transparent.

The schemes will provide support to two promising technology pathways: advanced bio-SAF not produced through the Hydroprocessed Esters and Fatty Acids process (non-HEFA advanced bio-SAF), and synthetic aviation fuels (e-SAF). The Netherlands believes that supporting these two types of SAF now will assist their commercial development, fostering technological diversity in the future.

Under the schemes, the aid will take the form of direct grants payable upon the completion of project milestones. The schemes will cover the period from 2027 until 2031 at the latest. Up to five rounds of funding will take place during this period, depending on the available funding. Beneficiaries of the scheme dedicated to support SAF production will have to prove compliance with the EU criteria for the production of renewable fuels of non-biological origin (RFNBOs) or the EU sustainability criteria for advanced biofuels.

Read the full release and the Commission's assessment here.

Read the article online at: https://www.hydrocarbonengineering.com/the-environment/05082026/commission-approves-290-million-dutch-state-aid-to-support-saf-development/