Final approval given | 1.2% of aviation fuel in EU must be derived from green hydrogen by 2030

The proportion of synthetic aviation fuels will be regularly increased until it reaches a 35% share from 2050

An airplane about to be refuelled with SAF supplied by Cepsa at Seville airport in Spain.
An airplane about to be refuelled with SAF supplied by Cepsa at Seville airport in Spain.Photo: Europa Press/Getty
Synthetic aviation fuel derived from green hydrogen must make up 1.2% of all aviation fuel in the EU by 2030, after member states signed off on the ReFuelEU Aviation directive.

Stay ahead on hydrogen with our free newsletter

Keep up with the latest developments in the international hydrogen industry with the free Accelerate Hydrogen newsletter. Sign up now for an unbiased, clear-sighted view of the fast-growing hydrogen sector.
Sign up now

This EU directive aims to significantly reduce greenhouse emissions from planes by 2050 by forcing flights departing EU airports to use increasing quantities of bio-based sustainable aviation fuels (SAFs) and green hydrogen-based synthetic e-fuels from 2025.

This means that aviation fuel in Europe would need to include a 2% blend of bio-SAF from 2025, rising to 6% in 2030, with increases every five years until the level reaches 70% in 2050.

At the same time, 1.2% of the fuel used by planes leaving EU airports in 2030 and 2031 must be made from synthetic kerosene — which is produced by combining green hydrogen with captured CO2 in the Fischer-Tropsch process — rising to 2% from 2032 to 2034, and to 35% in 2050.

The 1.2% figure is for the average share between 1 January 2030 and 31 December 2031, with a minimum share of 0.7% in each of the two specific years.

Similarly, the 2% figure represents an average share for the three-year period, but a minimum share of 1.2% per year is allowed in 2032 and 2033, although this rises to a minimum 2% share in 2034.

From 1 January 2035, each year must have a minimum share of 5% synthetic aviation fuel, rising to 10% from 1 January 2040, 15% from 1 January 2045 and 35% from 1 January 2050.

The EU expects the demand for aviation fuel at EU airports to reach about 46 million tonnes in 2030 — 1.2% of which is 552,000 tonnes. This amount will require about 92,000 tonnes of green hydrogen, and 460,000 tonnes of captured carbon (or roughly 1.8 million tonnes of CO2).

Aviation fuel suppliers and aircraft operators not meeting the criteria will be fined by yet-to-be-designated “competent authorities” in member states — with the size of the financial penalties to be set in a future report by the European Commission, due to be presented to member states by 1 January 2027 (and every four years thereafter).

“In order to ensure a level playing field of the aviation internal market and the adherence to the climate ambitions of the [European] Union, this Regulation should introduce effective, proportionate and dissuasive penalties on aviation fuel suppliers and aircraft operators in case of non-compliance,” the directive explains.

“The level of the penalties needs to be proportionate to the environmental damage and to the damage created on the level-playing field of the internal market inflicted by the non-compliance.

“When imposing fines and other penalties, the authorities should take into account the evolution of the price of aviation fuel and SAF in the reporting year and may also take into account the degree of non-compliance, for example where there are repeated infringements.”

The document also points out that the gradual decarbonisation of the EU’s aviation industry “should be supported through incentives that reflect the environmental benefit of SAF and make them more competitive for aircraft operators”.

These incentives could be funded, at least in part, by the fines.

“Using revenues generated from the fines, or the equivalent in the financial value of those revenues, to support research and innovation projects in the field of SAF, the production of SAF or mechanisms allowing the price differences between SAF and conventional aviation fuels to be bridged would contribute to the achievement of that objective,” says the directive.

The influential analyst Michael Liebreich stated last week that aviation e-fuel derived from green hydrogen would be four to five times more expensive than conventional fossil-based jet fuel, and will therefore make it unlikely that the 1.2% target for 2030 will be achieved.
The directive will become law 20 days after publication in the EU’s Official Journal.
The separate Renewable Energy Directive was also signed off by the European Council today, which includes mandatory targets for 42% of hydrogen used by industry to be green by 2030 and 1% of all transport fuels to be renewable fuels of non-biological origin (ie, green hydrogen or its derivatives) by 2030. See separate story here.
(Copyright)
Published 9 October 2023, 12:07Updated 9 October 2023, 17:10