Global Sustainable Aviation Fuel Report

The Netherlands has emerged as a European frontrunner in the SAF market, being one of the few countries worldwide where large-scale SAF production is taking place. The country’s strong focus on sustainability, existing chemical industry cluster with deep biorefining expertise, and robust logistics infrastructure make it an ideal location for SAF production. The Dutch government’s ambitious goals to blend 14.0% SAF into aviation fuel by 2030 and 100.0% by 2050 have created an environment conducive to SAF innovation and adoption.

The Netherlands’ commitment to SAF is evident through its increasing investment activity and a robust pipeline of SAF projects that are to be developed, constructed, and operated over the next 5 years. The fact that companies like Shell and Neste are increasingly focusing on developing and expanding their SAF production capabilities demonstrates this. While there are significant opportunities, the SAF industry in the Netherlands also faces challenges, including the high cost of production and the need for technological advancements to make SAF more economically viable. However, ongoing investments, government support, and strong industry collaboration are helping to address these challenges.

The Netherlands is committed to reducing its carbon emissions in line with the European Union’s targets and the Paris Agreement. The Dutch government’s target to blend 14.0% SAF into aviation fuel by 2030 puts the country ahead of the already ambitious EU targets to achieve 6.0% SAF by 2030. To support its short- and long-term targets, the government has introduced various policies and incentives (Invest in Holland, 2024).

The national policy focuses on voluntary agreements to limit emissions, restrictions on noise pollution, and the taxation of air travel (Hilbers, 2024). In January 2024, 31 parties active within the Dutch aviation industry presented their joint vision for a Future-Proof Aviation for the Netherlands, including 10 concrete commitments. A constructive discussion was held among the group and members of Parliament and policymakers regarding, among other things, scaling up the production of sustainable fuels (KLM, 2024) (Agreement, 2024).

The Dutch government has introduced tax breaks and subsidies to incentivise SAF adoption. KLM Royal Dutch Airlines, for instance, has taken advantage of these incentives and has committed to using SAF on all flights from Amsterdam to Los Angeles starting 2024. The government has also invested €20.0 million in a SAF plant in Rotterdam, a collaboration with SkyNRG, that will produce 50,000.0 tons of SAF per year once it is fully operational (SAF Investor, 2023).

As part of its efforts to reduce CO2 emissions, the government tripled air passenger taxes starting in January 2023 (€26.43 per passenger, per flight), representing an effective increase of €18.48 over 2022 (Schengen News, 2023). As of 1 January 2024, the travel tax was again revised to €29.05, representing a further increase of €2.62 over 2023 (Transavia, n.d.). The tax increase was approved by the government on 21 December 2023 with the aim of using part of the revenue to make aviation more sustainable and reduce its environmental impact (ch-aviation GmbH, n.d.).

Dutch airport operators are also gradually aligning themselves with national requirements as a result of the Dutch government’s ambitious SAF mandates. Rotterdam The Hague Airport (RTHA) set a minimum goal of blending 8.0% SAF beyond the European target of 6.0% as of 2024 (SAF Investor, 2023). Amsterdam Airport Schiphol is also taking steps to decarbonise its ground operations by 2030. The airport is part of the EU-funded TULIPS project, which aims to reduce carbon emissions from European airports through the implementation of innovative, sustainable technologies (CORDIS, 2024).

The Netherlands provides a robust, synergistic ecosystem to support diverse types of operations and plentiful partnership opportunities. Within the Dutch chemical ecosystem, several companies are already delivering SAF to customers, while others are building projects that are expected to become operational within the next few years ( Netherlands Foreign Investment Agency, 2024).

One key area of opportunity lies in harnessing the Netherlands’ abundant domestic renewable energy resources, particularly offshore wind. The country’s strong focus on renewable energy and extensive infrastructure makes it an ideal location for eFuel technologies like power-to-liquid SAF production. Several projects are underway to leverage this abundant renewable energy for SAF production, thereby presenting opportunities for investors and developers to enter the market.

Another crucial aspect of the Dutch SAF market is research and development. Dutch companies and research institutions are at the forefront of SAF technology development, with organizations like SkyNRG, actively involved in various projects and collaborations. The Dutch government and the European Union are providing substantial funding for SAF research and development projects to drive innovation and improve the commercial viability of SAF, thereby creating opportunities for technology providers and research institutions.

Airline initiatives also play a significant role in the Dutch SAF market. Major airline companies such as KLM and Transavia are actively involved in SAF projects, forming alliances with fuel producers to secure supplies and reduce carbon emissions. For example, in November 2023, KLM invested in DG Fuels to support the development of its Louisiana- based SAF plant, securing an option to purchase up to 75,000.0 tons of SAF annually over a multi-year period beginning in 2029 (Biofuels International, 2023). These airline initiatives present opportunities for SAF producers and suppliers to establish long-term partnerships and secure offtake agreements.

Government and EU funding is another key driver of the Dutch SAF market. The Dutch government, in conjunction with EU funding programs like Horizon Europe and the European Green Deal, is providing substantial financial support to SAF projects. These funds aim to incentivise market operators and stakeholders, ensuring that the Netherlands remains competitive in the global SAF market. This funding support creates opportunities for companies and research institutions to access capital and accelerate the development of SAF technologies and production facilities.

As the SAF industry is still in its early stages, collaborations and partnerships are becoming increasingly common, allowing for the diversification of risk and pooling of resources. The Netherlands’ strong SAF supportive ecosystem makes it an attractive location for such collaborations. Investors and industry players can explore opportunities to form strategic partnerships and joint ventures to accelerate the development and commercialization of SAF in the Netherlands.