Germany, Austria, Luxembourg commit over $2.25 billion to back development of eSAF market
In Israel, ESG Today reported that the governments of Germany, Austria and Luxembourg announced the launch of a new electricity-based SAF (eSAF) funding scheme, which will see the countries working together to introduce a new auction mechanism aimed at bringing together buyers and sellers of eSAF backed by public funding, in order to help facilitate investment into new production facilities.
As part of the new initiative, Germany will provide up to $2.25 billion, and Austria and Luxembourg will each provide up to $67 million, to help bridge the price gap between buyers and sellers, according to the report.
Under the new double-sided auction mechanism, bids from eSAF producers and demand from buyers will be determined through a competitive bidding process, with the price gap between the two sides bridged using government subsidies, it added.
Category: SAF
