EU's ReFuelEU Legislation Mandates Sustainable Aviation Fuel Use

The European Union has implemented the ReFuelEU Aviation regulation, aiming to curb carbon dioxide emissions from air travel. Under this new legislation, at least 2% of the fuel supplied at Union airports must be sustainable aviation fuel (SAF) starting in 2025. This share is set to increase incrementally, reaching 70% by the year 2050.

Sustainable aviation fuels are defined as synthetic fuels, biofuels, or fuels produced from recycled carbon. These fuels are compatible with existing aircraft and fuel distribution infrastructures when blended with fossil jet fuel to meet ASTM specifications, acting as 'drop-in' solutions.

Alexander Kueper, Vice President of Renewable Aviation Business at Neste, a global leader in SAF production, stated that the mandate is a welcome and important signal for the industry, ensuring demand for SAF. Kueper indicated that Neste possesses sufficient production capacity to meet the 2025 requirements, but stressed that all available SAF volumes are crucial for the industry to achieve its emissions reduction targets.

The regulation requires SAF availability primarily at major Union airports, with smaller airports having the option to voluntarily participate. While SAF adoption may necessitate adjustments for airlines and fuel suppliers, significant changes to airport infrastructure are not anticipated due to its 'drop-in' nature.

The regulation includes a flexibility mechanism that allows for the averaging of SAF obligations across Union airports for the first ten years. This provision permits certain airports to exceed their targets, while others may fall short.