Australian e-SAF for the German Aviation Sector

The aviation sectors in Australia and Germany are among the largest globally, making both countries’ net zero targets highly significant. E-SAF produced with green hydrogen and sustainable carbon feedstocks offers a particularly attractive decarbonization solution for the aviation industry, as its feedstocks are nearly unlimited and its usage potentially carbon neutral. Australia has tremendous potential as an e-SAF producer and exporter, while Europe and Germany are important markets, due to existing, ambitious e-SAF quotas. 

This study outlines e-SAF production pathways, existing regulation in Australia, the EU, and Germany, the willingness-to-pay in the EU/ Germany, the potential for an Australian supply chain, and recommendations to overcome current hurdles to e-SAF trade between these countries. Specifically, it recommends (1) providing regulatory certainty regarding ReFuelEU and RFNBO criteria, (2) signalling the need for e-SAF imports to meet German and EI e-SAF demand, (3) providing certainty for Australian projects with regard to industrial point sources, (4) developing Australian demand to advance decarbonisation and decrease dependency on imports, (5) providing planning security for Australian projects using biogenic CO₂ sources, (6) providing financing support for projects, and (7) facilitating the availability of sufficient quantities of low cost renewable power.