Unlocking investments in E-Fuels: Leveraging EU Financial Instruments to drive SAF bankability
The transition to E-fuels is critical for achieving net-zero targets, especially in aviation. However, despite growing demand and some technological advancements, large-scale e-Fuels initiatives still struggle to secure the necessary investments. Our global study on the SAF has identified key economic challenges hindering project bankability, including price volatility, regulatory uncertainty, and inadequate financial incentives. We will present a strategic approach to overcoming these barriers by utilizing existing EU financial instruments. We propose a new, internally developed EU funding mechanism as a part of a new fund designed to integrate also with ReFuelEU, the Industrial Act, ETS penalties, and other existing frameworks. This model aims to channel compliance-based revenues into sustainable investments, creating a self-reinforcing cycle to accelerate e-Fuels deployment.