The European Union on Friday approved a 290 million euros ($333.7 million) Dutch state aid package to accelerate the production of sustainable aviation fuels, supporting projects.
The funding will support SAF production projects in the Netherlands, including facilities using advanced biofuels and synthetic aviation fuels, with the schemes expected to help deliver around 285 kilotons of SAF per year once operational.
The European Commission said the output would be equivalent to about 350 million liters of kerosene, or enough fuel for about 3,500 intercontinental flights.
The Dutch schemes will provide grants for both SAF production investments and early-stage project development costs, including front-end engineering design studies. Funding will be awarded through transparent, non-discriminatory processes on a first-come, first-served basis.
The Commission said that support will focus on two emerging technology pathways, including advanced bio-SAF produced without the hydro-processed esters and fatty acids process, and synthetic aviation fuels, also known as e-SAF.
The Netherlands said backing these technologies at an early stage would support commercialization and encourage greater diversity in future SAF supply chains.
The grants will be paid when companies achieve agreed project milestones and will run from 2027 until 2031 at the latest, with up to five funding rounds planned depending on available resources.
"The schemes are necessary and appropriate to facilitate the production of SAF," the Commission said, adding that safeguards had been introduced to limit distortions to competition and trade within the bloc.
The approval follows a broader European push to scale up clean energy technologies and reduce industrial emissions.
Under the ReFuelEU Aviation rules, airlines operating in the EU face increasing SAF blending requirements, creating demand for new production capacity.
The EU has also strengthened renewable energy targets through amendments to its Renewable Energy Directive, raising the bloc's renewable energy goal to at least 42.5% of total energy consumption by 2030, with an ambition to reach 45%.