On July 28, the European Commission approved a €36 million ($41.07 million) Danish state aid scheme aimed at promoting the use of sustainable aviation fuel (SAF) on domestic routes. This is the first time the Commission has authorized a state aid scheme specifically to encourage SAF usage in aviation.

The scheme is designed to support at least one domestic air route in Denmark using 40% SAF. Airlines will receive monthly direct grants to cover the additional costs of SAF compared to conventional jet fuel, including related airport infrastructure expenses.

Aid amounts will be determined through a competitive bidding process. The program will support at least 20 commercial one-way SAF-powered flights per week on one or more domestic routes.

To prevent double funding, the scheme explicitly excludes SAF that is already subsidized by Denmark, other EU member states, or non-EU countries. It also ensures that SAF supported under this scheme does not receive overlapping support under the ReFuelEU Aviation regulation or the EU Emissions Trading System directive.

The aid scheme will remain in effect until the end of 2027. It marks a significant step toward Denmark’s green transition in aviation and serves as a potential model for other EU countries to follow.