France
France is emerging as a global leader in the SAF market, driven by its commitment to decarbonizing air travel and achieving ambitious climate goals. The French government has set progressive SAF incorporation targets, aiming for 1.5% in 2024, 2.0% by 2025 and 5.0% on all flights by 2030. Additionally, the target also includes a mandate of incorporating synthetic fuels as a specific proportion of the fuel blend (1.2% in 2030, 2.0% in 2032 and 5.0% in 2035, to gradually reach 35.0% by 2050) (Air France-KLM Group) (Scaling Up Sustainable Aviation Fuel Supply, 2024).
To further support these objectives, France has implemented policies and incentives to drive SAF development and adoption. These include investing €500.0 million in low-carbon aviation, extending the TIRUERT tax scheme to incentivize SAF use, and supporting research into novel SAF production technologies. Additionally, leading French airlines such as Air France and Transavia, are actively participating in SAF projects and collaborating with fuel producers to optimize SAF use in commercial flights.
GDP (Current Prices) USD (2023) | 3022 Bn |
Real GDP Growth Forecast (2024-2028) | 0.01% |
10-year Govt Bond Yield (12-month rolling average) | 2.99 |
Country Credit Rating | AA |
Average Daily Flights | 3,999 |
Existing Fuel Consumption | 8.85 million metric tons |
Usage Mandate | 1.5% SAF in 2024, rising to 2% in 2025 |
Projected SAF Capacity Under Development (MT/Year) | 888,000 by 2030 |
Policy Support |
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Source: IMF, Fred Economic Data, S&P Global, Knoema, EurocontrolI
Aviation Industry Backdrop
Note: In France, the aviation sector’s share of national emissions has doubled in 25 years
Source: (NATIONAL ACADEMY OF TECHNOLOGIES OF FRANCE, 2023)
France boasts a robust and innovative aviation industry, holding a significant position globally across aircraft manufacturing, airline operations and aerospace technology. The country is home to major industry players such as Airbus, Safran, and Air France-KLM.
In terms of air traffic, France has the 14th largest airline market worldwide based on the number of scheduled seats for 2023. The majority of the traffic is concentrated around Paris, with Charles de Gaulle, Orly, and Beauvais accounting for 56.0% of all departing seats (Cirium Diio, 2023). French airports saw an average of 3,999 flights per day in 2023, representing a 7.0% increase over 2022 (EUROCONTROL, 2024).
Source: OECD.Stat, 2024
Note: Thousand tonnes of CO2-equivalent
Policy Regulation
The French government’s ambitious and progressive SAF incorporation and synthetic fuel blending targets are expected to reduce the carbon footprint of the aviation sector and stimulate job creation and innovation. Towards this end, the country has implemented policies and incentives to curb emissions in the aviation sector and support the development and adoption of SAF.
In June 2023, the French government committed to invest a total of €500.0 million to advance low-carbon aviation (Clean Energy Wire, 2024). The investment includes €300.0 million for research into low-carbon aircraft and engines, €200.0 million to upgrade industrial production of SAF, and a goal to build the first low-carbon plane by 2030 (RFI , 2023) (Reuters, 2023).
To incentivize SAF use, France has extended the Taxe Incitative Relative à l’Utilisation d’Énergie Renouvelable dans les Transports (TIRUERT) scheme to air transport (Lhyfe Heroes, 2024). This tax system penalizes operators who do not meet blending obligations for advanced biofuels (ePURE, 2023). The initial SAF integration target was set at 1.0% for 2023, increasing to 1.5% by January 2024 with non-compliance resulting in a penalty of €168.0 per missing hectolitre. Following amendments to the draft finance bill for 2024, the TIRUERT penalty will be reduced to €125.0 per hectolitre in 2024, and a proposed increase to €280.0 in 2025 has been removed (Senate, 2023). The scheme is expected to drive significant adoption of renewable energy in aviation, with an estimated 80.0GWh to 120.0GWh of renewable electricity to be marketed through TIRUERT in 2024 (Lhyfe, 2024).
These policies and investments demonstrate France’s commitment to decarbonizing aviation and promoting the widespread use of sustainable aviation fuels. The country’s approach combines financial incentives, research and development support, and regulatory measures to accelerate the transition to cleaner air travel.
Market Opportunity
The French SAF market is on the cusp of a transformative journey, driven by collaborative efforts of aviation industry stakeholders, biofuel producers, research institutions, and government bodies. These partnerships are key to scaling up SAF production, improving efficiency, reducing costs, and increasing its availability in the market. by stimulating demand and promoting the industrialization of French production sectors.
To enhance the sustainability and economic viability of biojet fuels, researchers are focusing on developing novel SAF production technologies. With limited biomass feedstock, synthetic jet fuel technology is important to meet the growing demand for SAF (NATIONAL ACADEMY OF TECHNOLOGIES OF FRANCE, 2023). Innovations in feedstock diversity, conversion processes, and lifecycle assessments are also at the forefront of these development efforts.
The French SAF production pipeline is picking up pace, with multiple projects due to come online in the coming years. Once completed, these projects will help to reduce the country’s dependence on imported energy sources and lead to increased exports of SAF.
SAF Initiatives
| Company | Collaborating Entities |
|---|---|
| H2V and Hy2Gen | H2V and Hy2Gen, prominent players in sustainable energy solutions, have united their expertise to establish a pioneering production unit for e-SAF. This partnership, operating as a temporary consortium, aims to establish a production capacity of 50,000.0 tonnes of e-SAF by 2030 (ChemAnalyst, 2024 |
| Engie and Infinium | Engie and Infinium announced plans to build a project called Reuze to develop synthetic fuel production with ArcelorMittal Dunkirk’s factory for air and sea transport. Reuze will utilize 300,000.0 tonnes of CO2 captured at ArcelorMittal’s steel plant to produce 100,000.0 tonnes of synthetic fuels (Industry Decarbonization Newsletter, 2024) (Nord France Invest, n.d.) |
| Engie and Air France | ENGIE partnered with Air France to build a synthetic fuels production unit for air transport and green chemistry. Feasibility studies are underway, with final investment decisions set to be made by 2025. Construction is expected to start in 2026 and upon completion, annual kerosene production will reach approximately 70,000.0 tons (Reuters, 2023) (Haropa Fort, n.d.) |
| Hy2Gen, Technip Energies, Bionext, and Axens | Technip Energies, a strategic shareholder of Hy2gen, through its subsidiary Hy2gen France is aiming to deploy BioTfueL technology on an industrial scale as part of the Hynovera project. The project cost is estimated at €460.0 million and feasibility studies are underway. The final investment decisions are set to be made by Q2 2026, with a target of starting commercial operations by Q4 2029. Once completed, production is estimated to reach 32,000.0 tons per year for e-SAF, and 700.0 tons per year for e-Diesel (hy2gen, n.d.) (Offshore Energy, 2022) |
| Elyse Energy and Khimod | Elyse Energy and Khimod entered into a partnership to produce power-to-liquid sustainable fuels for air transport through the AVEBIO collaborative project. The funding is being provided by Hy24, a clean hydrogen infrastructure fund, and Mirova, an investment management company specializing in sustainability financing. The funding will support Elyse’s plans to produce 200,000.0 metric tons of SAF and 1.0 million tons of e-methanol per year (Aviation Week Network, 2023) |
| Total Energies | TotalEnergies, has committed to producing SAF at its refineries. The company aims to produce significant quantities of SAF by converting its existing facilities to support biofuel production, leveraging advanced technologies to ensure high efficiency and sustainability (TotalEnergies, 2023) |
| Engie | Engie is investing in SAF production through partnerships with technology providers and research institutions. Engie plans to utilize its extensive refinery network to produce SAF, contributing to the country’s overall production capacity (ENGIE, 2023) |
| Carbios | Carbios is developing a commercial-scale plant in Longlaville, France, focusing on enzymatic recycling of PET plastics. While not directly related to SAF, the technological advancements and expertise gained from this project are expected to contribute to the development of sustainable fuel production in France (Chemical Engineering, 2024) |
Airline Initiatives: Leading the charge in this green revolution are airlines such as Air France and Transavia, actively participating in SAF projects and forming alliances with fuel producers. These collaborations often involve long- term purchase agreements and joint research efforts to optimize SAF use in commercial flights. For example, Air France-KLM, has signed strategic agreements with Neste and DG Fuels to secure a supply of 1.6 million tonnes of SAF between 2023 and 2036 (Air France-KLM Group).
Outlook
As the aviation industry sets its sights on decarbonisation, SAF is poised to play a pivotal role in this transition. Its production compatibility with existing infrastructures makes its adoption easier. The current decade is crucial for establishing a realistic industrial trajectory to ensure its effective availability on the right scale and at the right time.
France is well-positioned to lead in SAF production, thanks to its largely decarbonized electricity mix from solar, wind, and nuclear power. However, to support this growth, the government must implement a proactive industrial policy to expand low-carbon electricity beyond current needs (NATIONAL ACADEMY OF TECHNOLOGIES OF FRANCE, 2023).
The French SAF market is on the brink of a promising future, propelled by technological advancements, policy support, and industry collaboration. As sustainability and environmental stewardship become increasingly essential, France aims to be at the forefront of the transition towards sustainable aviation fuels, contributing to a greener future for the aviation industry and beyond.