The European Commission has approved two Dutch State aid schemes worth a combined €290 million to accelerate the production of sustainable aviation fuels (SAF), supporting the decarbonisation of the aviation sector and helping deliver the objectives of the EU's Clean Industrial Deal and the ReFuelEU Aviation Regulation.

The funding will support projects expected to produce around 285 kilotonnes of SAF annually, equivalent to approximately 350 million litres of kerosene or enough fuel for around 3,500 intercontinental flights each year.

The Netherlands notified the Commission of two complementary schemes aimed at supporting SAF projects at different stages of development. One scheme will provide investment aid for SAF production facilities, while the second will finance preparatory activities, including front-end engineering design (FEED) studies, to help projects reach the investment stage.

The aid will be awarded through transparent, objective and non-discriminatory first-come, first-served procedures. The schemes will run between 2027 and 2031, with up to five funding rounds depending on the availability of public resources.

The programmes focus on two technology pathways considered key to expanding Europe's SAF industry: advanced bio-based SAF produced through non-HEFA pathways and synthetic aviation fuels (e-SAF). According to the Dutch authorities, supporting both technologies at an early stage will encourage their commercial deployment while promoting greater technological diversity across the sector.

Financial support will be provided as direct grants linked to the achievement of predefined project milestones. Beneficiaries receiving investment aid for SAF production will also be required to demonstrate compliance with the EU sustainability criteria for advanced biofuels or the renewable fuels of non-biological origin (RFNBO) requirements, depending on the technology used.

In its assessment, the Commission concluded that the measures comply with EU State aid rules under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU), the 2022 Guidelines on State aid for climate, environmental protection and energy (CEEAG) and the 2025 Clean Industrial Deal State Aid Framework (CISAF).

The Commission found that the schemes are necessary and appropriate to facilitate SAF production, create a sufficient incentive for investments that would not otherwise proceed, and include safeguards to minimise distortions of competition and trade within the EU. It also determined that the aid is proportionate, as it respects the applicable aid intensities established under the CEEAG and CISAF frameworks.

The approval forms part of the EU's broader strategy to accelerate industrial decarbonisation and expand the production of sustainable aviation fuels, which are expected to play a central role in reducing emissions from one of the hardest-to-abate transport sectors.

The Clean Industrial Deal State Aid Framework, adopted in 2025, enables Member States to provide faster support for investments in clean energy, industrial decarbonisation and clean technology manufacturing while preserving fair competition in the Single Market.

The initiative also aligns with the EU Renewable Energy Directive, which establishes strict sustainability requirements for advanced biofuels and renewable fuels of non-biological origin. Following its 2023 revision, the directive raised the EU's binding renewable energy target to at least 42.5% by 2030, with an ambition to reach 45%, while also setting renewable hydrogen targets for industry of 42% by 2030 and 60% by 2035.