The European Union’s ReFuelEU Initiative: A Shift Toward Greener Skies

The European Union is embarking on a transformative journey to make aviation more sustainable, as highlighted in the first ReFuelEU Annual Technical Report published by the European Union Aviation Safety Agency (EASA). This report lays the groundwork for monitoring and compliance in sustainable aviation fuel (SAF) usage, marking a significant milestone in EU climate initiatives.

Initial Steps and Reporting

While the primary obligations of the ReFuelEU Aviation Regulation (RFEUA) will officially take effect on January 1, 2025, 2024 served as a foundational year for stakeholders to report on their activities. This initial reporting exercise provided a “dry run” experience for aviation fuel suppliers and aircraft operators, allowing them to showcase their preparedness and identify areas needing clarification and alignment.

Aviation Fuel Suppliers: A Snapshot of Compliance

In 2024, 67% of obligated aviation fuel suppliers—83 out of 123—completed their reporting tasks. These suppliers delivered 32.1 million metric tonnes of aviation fuel to EU airports, with 192,700 tonnes (just 0.6%) classified as sustainable aviation fuel (SAF). Remarkably, this early SAF supply prevented about 714,000 tonnes of CO2 emissions, showcasing a 91% reduction compared to conventional aviation fuels.

Dominance of Aviation Biofuels

Most of the SAF supplied in 2024 was categorized as aviation biofuels (98%), with a majority derived from used cooking oil (81%) and waste animal fats (17%). However, it’s crucial to note that fewer than ten suppliers provided 80% of the SAF output. Additionally, just five Member States—France, the Netherlands, Spain, Sweden, and Germany—accounted for nearly all of this supply, reflecting a concentrated yet early-stage market for SAF in the EU.

Aircraft Operators: Compliance and Fuel Uplift

Turning to aircraft operators, there was a 74% compliance rate with reporting obligations, as 262 out of 351 operators submitted acceptable reports. These operators uplifted 38.8 million tonnes of aviation fuel across EU airports in 2024, exceeding the 90% refueling threshold set at the Union level. However, only 61% of individual airports met this standard, indicating inconsistencies in implementation across different Member States.

In terms of SAF consumption, operators purchased approximately 358,000 tonnes in 2024, representing 0.81% of the total fuel uplifted. Most of this SAF (96.5%) was classified as aviation biofuels, further emphasizing the reliance on traditional sources during the transition.

The State and Growth of the EU SAF Market

EASA’s assessment reveals encouraging developments in SAF production, with 17 Member States actively engaged in production activities in 2024—a significant increase from 12 in 2023. Projections for SAF production capacity by 2030 illustrate three scenarios:

• Operating Scenario: 1.4 million tonnes of SAF from existing facilities.
• Realistic Scenario: 3.6 million tonnes, incorporating facilities that are currently under construction.
• Optimistic Scenario: 5.2 million tonnes of SAF alongside 0.7 million tonnes of synthetic aviation fuels from noteworthy announced projects.

While these projections are promising, it’s essential to note that EU SAF capacities are projected to meet the 2030 minimum SAF shares under RFEUA. However, the development of synthetic aviation fuel production is currently lagging; no synthetic fuel facilities have secured final investment decisions, leading to concerns about achieving future targets.

Global Supply Chains and Reliance on Imports

A significant portion of SAF feedstock is sourced from outside the EU, with 69% of it originating abroad in 2024. China leads this supply, contributing 38%, followed by Malaysia with 12% and Finland providing 10% of the domestic supply. Notably, imports accounted for over 40% of total SAF supply, underscoring the EU’s ongoing dependence on external markets for sustainable fuel options.

Economic Dynamics: SAF Pricing

EASA has also established reference prices for SAF and conventional aviation fuels in 2024. Aviation biofuels fetch a price of €2,085 per tonne, significantly higher than conventional aviation fuel, priced at €734 per tonne. This disparity highlights the economic challenges faced by stakeholders aiming to scale up SAF deployment in the aviation sector.

Setting the Stage for Future Sustainability Efforts

The first ReFuelEU report sets an essential baseline for the EU’s ongoing sustainability efforts in aviation. It reflects significant early progress in SAF supply and emissions reduction while emphasizing critical issues related to market concentration, import dependencies, and the necessity for continued investment in synthetic fuels. As the EU gears up for mandatory SAF use in 2025, along with ambitious targets for 2030 and 2035, this foundational assessment offers crucial insights for regulators, operators, and fuel suppliers in the aviation industry.