Luxembourg joins coalition to boost sustainable aviation fuel
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Luxembourg, Germany, and Austria are jointly funding initiatives to increase the production of electric synthetic aviation fuel (eSAF) in Europe.
The three countries will provide 2.12 billion euros to support the development and production of this fuel, which aims to make air travel more sustainable. Market research conducted by the German Transport Ministry and confirmed in Luxembourg indicates strong support for accelerating eSAF deployment, but investors need assurance.
The new “eSAF Early Movers Coalition” will address this by helping to bridge the gap between production costs and what buyers are willing to pay. Currently, producers require long-term purchase agreements to justify the significant investments needed for eSAF production, while airlines typically commit to shorter-term contracts. The coalition will guarantee long-term production prospects while maintaining competitive purchase conditions.
Luxembourg’s Economy Minister Lex Delles stated the countries aim to protect the climate, strengthen European industry, and reduce reliance on fossil fuel imports. The funding will be distributed according to each country’s financial contribution, with Germany committing up to 2 billion euros, and Luxembourg and Austria each contributing 60 million euros. European regulations already require increasing amounts of sustainable aviation fuels, and eSAF will play a key role in meeting these targets.
