In Belgium, Reuters reported that the European Union has offered to subsidize airline purchases of more than 200 million liters of sustainable aviation fuels to encourage carriers to swap kerosene for cleaner alternatives.
According to Reuters calculations, based on European Commission data, suggest that the subsidies could trigger a significant boost to airline demand for sustainable aviation fuels, given the volume equates to about 15% of global SAF production.
The EU has earmarked revenue from the sale of 20 million carbon emissions permits to help airlines to cover the price gap between conventional kerosene and more expensive SAF on flights within Europe.
Reuters calculations showed these subsidies would cover purchases of up to 216 million liters of e-fuels- synthetic fuels made using captured CO2 emissions – or as much as 2.6 billion liters of biofuels.
The EU subsidies cover up to 6 euros per liter for e-fuels and 0.5 euros per lier for biofuel.
The EU requires 2% of fuel made available at EU airports to be SAF in 2025, rising to 6% in 2030.
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