Germany to back sustainable aviation fuels with €2 bln by 2039 – govt report

Germany plans to support the market ramp-up of sustainable aviation fuels (SAF) with two billion euros between 2030 and 2039, Handelsblatt reported. According to an upcoming aviation strategy, set to be unveiled at the International Aerospace Exhibition from 10 to 14 June in Berlin, the “strategically important sector” can be a driver of innovation and guarantee value creation, the business daily added.Pursuing the aim to make Germany a leader in future aviation technologies, the government plans to outline support for SAF as well as climate-friendly propulsion systems, for example hydrogen engines, Handelsblatt reported. However, the government added that funding measures are subject to available financing. It also plans to work with European partners to ensure that the sector reduces dependences on raw materials and fuel supply from outside of Europe, it added. The government does not expect hydrogen to be widely used an as aviation fuel in German air traffic in the short term, according to a recent transport ministry report. However, the war in Iran and blockade in the Strait of Hormuz have widely disrupted global supply chains and airlines have warned of potential jet fuel shortages. Germany’s government recently approved to cut air traffic control charges and the air passenger tax to help its struggling aviation sector and boost passenger numbers. Environmental NGOs have criticised the tax reduction as a “fatal signal for the transport transition” given the significant climate footprint of flying. In 2024, a working group on climate-neutral aviation in Germany made up of government officials and industry representatives called for a clear commitment by politicians and industry to the SAF market ramp-up, and other key measures to cut the sector’s greenhouse gas emissions. Biofuels and synthetic jet fuel, known as e-kerosene, made from green hydrogen and CO2 obtained largely from direct air capture, could make the aviation industry fossil-free. However, production is still costly and volumes are relatively low.

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