European Union Approves €290 Million Dutch Aid for Sustainable Aviation Fuel Production

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), reinforcing the European Union's efforts to decarbonise the aviation sector. The funding supports the objectives of the EU's Clean Industrial Deal and the ReFuelEU Aviation Regulation by expanding the supply of low-carbon aviation fuels.

The Dutch schemes will support projects at different stages of development, including investment in sustainable aviation fuel production facilities and preparatory engineering studies needed before construction begins. Together, the projects are expected to produce around 285,000 tonnes of sustainable aviation fuel annually, helping reduce emissions from one of the most challenging sectors to decarbonise.

The funding will focus on advanced bio-based sustainable aviation fuels produced through non-HEFA pathways and synthetic aviation fuels (e-SAF). Financial support will be provided through transparent grant mechanisms between 2027 and 2031, with beneficiaries required to comply with the European Union's sustainability criteria for advanced biofuels and renewable fuels of non-biological origin.

The approval marks the first sustainable aviation fuel programme authorised under the European Union's Clean Industrial Deal State Aid Framework. By supporting early-stage investment and commercial deployment of innovative fuel technologies, the initiative is expected to strengthen Europe's clean aviation industry, reduce greenhouse gas emissions and accelerate the transition towards climate-neutral air transport.

€290 million Dutch state aid for SAF production is a signal that European aviation-fuel supply is being underwritten at member-state level, which changes how airlines and refiners should be sequencing SAF procurement contracts. Our energy-transition and supply-chain-and-operations teams help clients evaluate SAF sourcing, ReFuelEU compliance and disclosure narrative.