France’s government has backed the principle of a “double-auction” mechanism to support the development of synthetic aviation fuels (e-SAF), following a report assessing measures to accelerate the sector. The mechanism would allow a public market intermediary to sign long-term purchase agreements with e-SAF producers and resell the fuel to aviation fuel suppliers through shorter-term contracts, providing greater revenue visibility for large projects.

The government said it will use the coming weeks to design a new public support scheme. The proposal is intended to help projects reach final investment decisions, as France seeks to develop domestic e-SAF production under the EU’s ReFuelEU Aviation framework. The government also highlighted four projects already receiving state support through the €100 million CarbAero programme.

The announcement was welcomed by France Hydrogène after the organisation’s response to France’s 2027 draft budget. The sector group highlighted three measures: the planned e-SAF double-auction mechanism, the entry into force of the IRICC carbon-intensity incentive, and €1.2 billion for the second phase of France’s support mechanism for low-carbon hydrogen production.

France Hydrogène said France has 12 e-SAF projects that could come online between 2030 and 2035, representing more than 800,000 tonnes of potential annual production capacity. The organisation estimates that the planned mechanism could support up to 160,000 tonnes of annual e-SAF production, equivalent to the volume needed to meet the 2% target for 2032 under ReFuelEU Aviation.