EU Approves €290 Million Dutch Push to Scale Up Sustainable Aviation Fuel

The European Commission has approved €290 million in Dutch state aid to accelerate the development and production of sustainable aviation fuels (SAF), strengthening Europe’s efforts to decarbonise one of the hardest-to-abate transport sectors.

The funding will support two complementary schemes in the Netherlands: one providing investment aid for SAF production facilities and another financing preparatory work, including front-end engineering design studies. Together, the schemes are expected to support projects capable of producing around 285,000 tonnes of SAF annually, equivalent to approximately 350 million litres of kerosene or the fuel demand of roughly 3,500 intercontinental flights.

The programmes will focus on two technology pathways: non-HEFA advanced biofuels and synthetic aviation fuels (e-SAF). The Dutch government sees early support for both technologies as a way to accelerate commercial development while maintaining technological diversity in the emerging SAF market.

Funding will be distributed through up to five rounds between 2027 and 2031, with grants released as projects reach defined milestones. Supported producers will also have to meet EU sustainability requirements for advanced biofuels or renewable fuels of non-biological origin.

The Commission concluded that the schemes are necessary to unlock investments that may not proceed without public support, while safeguards will limit distortions to competition and trade within the EU.

The approval aligns with the Clean Industrial Deal and ReFuelEU Aviation Regulation, which aim to expand clean technology investment and increase the availability and uptake of SAF.

As aviation faces growing pressure to reduce emissions, the Dutch programme could help move SAF technologies from development toward commercial-scale deployment while supporting Europe’s broader transition to climate-neutral aviation.

€290 million of Dutch SAF funding signals continued member-state commitment to underwriting aviation fuel decarbonisation, and it changes SAF procurement contracting for airlines flying through Amsterdam. Our energy-transition and supply-chain-and-operations teams help airlines and refiners evaluate SAF-linked strategy and ReFuelEU compliance planning.