Fueling tomorrow
The recently announced Sustainable Transport Investment Plan (STIP) is the European Commission’s latest measure to provide financial support for advanced SAF production. Under the plan, the European Commission will explore and pilot revenue certainty mechanisms, including a double-sided auction that offers long-term contracts to provide revenue certainty to fuel producers as well as short-term contracts on the offtake side.
But revenue certainty isn’t the only support that the EU and Member States can provide for SAF.
Under newly revised state aid rules, Member States have more flexibility to fund advanced SAF directly. The Clean Industrial Deal State Aid Framework (CISAF), which was finalized in June 2025, was designed to accelerate the rollout of renewable energy and low-carbon fuels in the EU via simplified procedures for financial support. For example, state aid rules—put in place to prevent distorted competition that would affect trade within the EU—have required Member States to seek approval from the European Commission to provide funding or subsidies for renewable energy projects such as SAF production. The CISAF reduces administrative burdens, making it easier for Member States to fund these projects.
Under the CISAF, Member State governments can provide financial aid to advanced SAF projects through a competitive bidding process (covering up to 100% of eligible costs) or administratively through calls for proposals (covering up to 45% of eligible costs, with bonuses for small- and medium-sized projects). Member States can also use direct price support schemes, such as contracts for difference or feed-in premiums, to cover costs of eligible investments.
Aid from the CISAF can be combined with other state aid or centrally managed EU funds, such as financing under the Innovation Fund, provided that the aid concerns different eligible costs. If the aid targets the same eligible costs (for example, equipment costs), then funds can still be combined, but the aid amount cannot exceed the highest support intensity. For example, if the Innovation Fund covers 40% of equipment costs and state aid covers 45%, the aid received will be 45% of the costs, not 85%. Importantly, if an e-kerosene producer receives funding from the European Hydrogen Bank auction, which awards a fixed premium for renewable hydrogen projects, it limits the producer’s ability to use state aid for hydrogen production. This can have a big impact on the total cost of support.