PtX Lab Lausitz hosts high-level dialogue on making eSAF bankable in Europe

Electricity-based sustainable aviation fuels (eSAF) can replace fossil fuels. They are therefore considered a key technology for the defossilisation of aviation. However, their production and the associated market ramp-up face considerable challenges.

Against this backdrop, PtX Lab Lausitz hosted a panel discussion in Brussels on 2 December 2025 and opened a dialogue space on the bankability of European eSAF projects under the guiding question ‘How to Make eSAF Bankable in Europe’.

The event was held under the patronage of MEP Dr Christian Ehler and, based on the European Commission's newly published Sustainable Transport Investment Plan (STIP), highlighted remaining investment gaps and possible solutions to accelerate the market ramp-up of eSAF.

Background: STIP and the investment needed for eSAF

To meet the sustainable fuel quotas set out in the ReFuelEU Aviation and FuelEU Maritime Regulations, a lot of investment is needed. However, despite regulatory progress, final investment decisions (FIDs) are still lacking. With STIP, the European Commission is expanding existing instruments and adding a two-sided auction mechanism. This is intended to remove financing barriers and offer greater planning security.

Exchange with decision-makers in Brussels

In a panel discussion, Felix Schmermer, Head of Section PtX Policy & Market Ramp-up at PtX Lab Lausitz, discussed the adequacy of the proposed financial architecture. Diane Vitry, Head of Aviation at Transport & Environment, Ourania Georgoutsakou, Managing Director of Airlines4Europe, and Felix Wursthorn, financial expert at Ineratec GmbH, provided input.

Since the regulation and financing of eSAF are largely determined at the European level, the head of PtX Lab Lausitz, Dr Harry Lehmann, and the leading PtX speakers Josephine Götze and Daniel Stähr invited experts from EU politics, industry and research to Brussels.

At the heart of European politics, representatives of leading industrial companies and individuals from non-governmental organisations and civil society engaged in direct discussions with political decision-makers. The following questions were used to discuss whether the proposed financial architecture is sufficient to make eSAF projects financially viable in Europe:

• Does the STIP framework enable the bankability of eSAF projects?
• Where do financing gaps remain despite the new instruments?
• What additional political and/or financial instruments will help to overcome existing market barriers?

Statements by the panel guests

• Diane Vitry, Director Aviation, Transport & Environment:

„Europe needs to scale e-SAFs - the only aviation fuels that are truly sustainable, scalable, and strategically aligned with Europe’s energy sovereignty. But despite over 40 announced eSAF projects in Europe, not a single one has reached FID due to high costs, uncertain demand, weak financing tools, and the near-total absence of investment from oil majors. Unless the EU brings regulatory stability, strengthens financing mechanisms, and holds firm against calls to weaken ReFuelEU, Europe risks missing its own targets and losing leadership to the US and China. The solution is clear: deploy robust de-risking tools, reform SAF allowances, recycle some of the ETS revenues to support green e-fuels, and finally get these strategic projects to FID.” 

• Felix Wursthorn, Corporate Finance Manager, Ineratec GmbH:

„Technology is not the real barrier that’s keeping e-SAF from scaling – the challenge today is getting the right framework and offtakes needed to secure financing for new projects. Solid e-SAF mandates alone are not enough to get projects to FID – we need targeted interventions aimed at unlocking offtake and investments.”

• Felix Schmermer, Head of Section PtX Policy & Market Ramp-Up, PtX Lab Lausitz:

„It is important to seize the STIPs potential by adopting a properly tailored double-sided auction mechanism for eSAF. This auction should provide full-cost coverage over a long horizon, for example via a 15-year contract, with an upfront payment component to cover early capital expenditures. Such support will greatly reduce financing risk for first-of-a-kind eSAF projects and ensure their bankability, spurring immediate final investment decisions. This could prove to be the missing piece in the puzzle for unlocking the eSAF market ramp-up. We already have a dependable regulated market signal through the mandate, backed by regulatory certainty and offtake instruments such as SAF Allowances.”