Spanish airlines will pay an additional €234.2 million this year for the use of 2% sustainable aviation fuel (SAF) since the EU’s sustainable aviation fuel mandate came into force on January 1, the Spanish aviation group Asociación de Líneas Aéreas said on January 2, adding that it would be a good idea for Spanish airlines to pay an additional €234.2 million this year for the use of 2% sustainable aviation fuel (SAF).
The Spanish Aviation Association (ALA) has called for production incentives to scale up its development and reduce its price differential with conventional kerosene.
This year will see the start of the implementation of the “ReFuelEU Aviation” directive from Brussels, which establishes quotas for the use of SAF ranging from 2% in 2025 to 70% in 2050.
According to the ALA, the total cost of using 2% SAF in Spain this year alone will be more than €332 million – a figure that is set to rise as SAF shares are gradually increased, especially with the introduction of synthetic SAF (eSAF) generated from renewable energy sources.
The association said that when the SAF quota rises to 6% in 2030 and 1.2% synthetic SAF is introduced, the additional cost to be borne by EU airlines will rise to around €9.5 billion.
This extra cost will have to be added to the cost of trading EU ETS emission credits, which will become more expensive from 2026 when free emission credits disappear, in addition to a gradual reduction in the supply of emission credits, whose price will be pressured by demand.