E-SAF made in Europe - A source of jobs, growth and energy security
E-SAF can play a key role in reducing European aviation emissions. While the climate benefits of e-SAF are well understood, much less attention has been paid to what scaling up European production could mean for Europe’s economic growth, jobs and energy security.
Currently, the EU relies on imports for more than 95% of its jet fuel supply, with heavy reliance on the Middle East. The consequences of this are evident in the drastic increase in European jet fuel prices in recent weeks due to the crisis in the Middle East.
The new report commissioned to ERM, finds that scaling up e-SAF production could reduce this dependence and enhance Europe’s energy sovereignty. Furthermore, the report shows that e-SAF production in Europe would represent a major industrial opportunity:
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Up to 85% of investments into European e-SAF plants could stay in Europe
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€20 billion gross value added from building European e-SAF plants to meet the ReFuelEU and UK SAF mandate 2030 targets
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4,000 jobs could be supported by operational e-SAF plants required to meet ReFuelEU and UK SAF mandate 2030 targets
To meet the ReFuelEU and UK SAF mandate 2030 e-SAF targets through domestic production, Europe would need to build around nine e-SAF plants, each with 75 kt e-SAF annual production capacity. These facilities require significant upfront investment but could deliver substantial long-term economic and social returns. The analysis shows that a large share of this value can be captured within Europe if domestic production and technology is prioritised over imports.
Key recommendations
The socio-economic benefits outlined above are not automatic. They depend on where e-SAF is produced and how much of the supply chain is located in Europe. Capturing these benefits therefore requires deliberate policy choices to support European production and reduce over-reliance on imports. To help achieve this, T&E recommends the following:
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1
Preserve the e-SAF sub-targets under ReFuelEU Aviation and the UK SAF mandate.
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2
Use the market intermediary and SAF allowances to prioritise made-in-Europe e-SAF.
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3
Accelerate implementation through Member State funding of the e-SAF pilot auction.
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