eSAF Funding Mechanisms

Germany, Austria and Luxembourg introduced a joint double-sided auction mechanism to accelerate the market ramp-up of electricity-based Sustainable Aviation Fuel across Europe, with Germany providing up to €2 billion in funding alongside €60 million each from Austria and Luxembourg. The mechanism brings eSAF producers and buyers together, with public funding bridging the price gap between long-term production costs and shorter buyer contracts.

Electricity-based Sustainable Aviation Fuel is produced from renewable hydrogen through electrolysis, significantly reducing lifecycle emissions while remaining compatible with existing aviation fuel infrastructure. The three countries, founding members of the eSAF Early Movers' Coalition launched in December 2025, will distribute subsidized fuel volumes proportional to each nation's funding contribution.

The mechanism signals how coordinated public funding across multiple countries could help new eSAF production facilities reach commercial scale faster.