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Spain Aviation, Energy Groups Push Madrid to Back European e-SAF Auction

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Over 21 Spanish aviation and energy groups urged Madrid to commit financial support for a European e-Sustainable Aviation Fuel auction before the June EU Transport Council, Transport & Environment said in a Tuesday statement.

The coalition issued a joint letter to the Spanish government urging direct financial support for synthetic SAF, also known as e-SAF.

Apart from T&E Spain, which coordinated the effort, the coalition includes airlines, aircraft manufacturers, renewable power companies, and industrial developers in support of public funding for e-SAF projects.

The signatories, including Airbus, Moeve, AELEC, RIC Energy and the Spanish Airlines Association, proposed a pilot auction backed by a public intermediary under a structure similar to H2 Global.

T&E said Europe imports about 95% of its crude oil, while nearly 30% of jet fuel supplies rely on shipping routes through the Strait of Hormuz.

The coalition said disruptions linked to the Iran crisis more than doubled benchmark jet fuel prices and pushed Lufthansa to cancel 20,000 flights through the autumn period.

International Energy Agency Executive Director Fatih Birol warned Europe may hold only about six weeks of jet fuel reserves after the recent supply disruptions.

T&E estimated geopolitical oil costs added 29 euros ($33.96) per passenger on intra-European flights, compared with just 0.70 euros tied to ReFuelEU compliance requirements.

The gap widened on long-haul flights, where fossil fuel exposure lifted costs by 88 euros per passenger while ReFuelEU rules added only about 3 euros, according to T&E.

T&E Spain Deputy Director Ioan Bucuras said aviation faces greater risks from oil dependence than from climate regulation.

"Every euro invested in e-SAF today is an insurance policy against future energy shocks, and a bet on European industrial sovereignty," he said.

The coalition identified uncertainty over long-term revenues, technology risks and short-term offtake agreements as the main barriers preventing investment in industrial-scale e-SAF facilities.

The groups proposed a two-sided auction system that would guarantee long-term revenues for producers while securing competitively priced fuel supplies for airlines.

Germany has already pledged up to 2 billion euros for an e-SAF auction planned by early 2027, while Luxembourg and Portugal are also weighing participation, according to T&E.

The coalition urged Spain to join the European Commission taskforce shaping the joint e-SAF pilot auction and ensure the framework supports Spanish projects and domestic fuel buyers.

The signatories also asked Madrid to commit funding before the June 26 EU Transport Council by using the Recovery and Resilience Facility and Emissions Trading System revenue, while improving interministerial coordination and stabilizing electricity costs for industry.

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