Germany Launches €2 Billion eSAF Auction to Close 12x Price Gap With Jet Fuel

Germany's Federal Ministry of Transport plans a €2 billion auction to support synthetic aviation fuel (eSAF), using the H2Global double-auction model. The scheme funds the gap between producer purchase prices and distributor resale, aiming to unlock final investment decisions for a sector where no large-scale European project has reached FID. EASA's 2025 reference prices put eSAF at roughly €7,520 per tonne versus €640 for conventional jet fuel — nearly twelve times higher. At that cost, €2 billion would purchase only about 266,000 tonnes, far below Europe's tens of millions of tonnes of annual jet fuel consumption. Transport & Environment counts 41 European eSAF projects with nearly 3 million tonnes of potential annual output; only four are advanced. The auction follows a failed 2022 eSAF pilot that ended without a contract award. Germany's proposal adds a dedicated budget and longer delivery horizon, part of an eight-country Early Movers Coalition targeting at least €500 million for a multinational auction. Qualifying fuel must be ASTM-certified and produced within the European Economic Area, potentially excluding cheaper renewable-power regions.