Deutsche Lufthansa AG has joined the eFuel Alliance, reinforcing the organization’s role as a representative for the entire renewable fuel value chain. This collaboration aims to bolster the development and adoption of sustainable aviation fuel (SAF), according to the press release.
Currently, biogenic SAF is produced in limited quantities and at high costs, while electricity-based kerosene is only being generated in experimental facilities. “Sustainable aviation fuel are crucial for the future decarbonization of aviation, yet the market is struggling to take off. Quotas alone are insufficient. Germany and Europe must actively promote the import and production of sustainable fuels,” said Kay Lindemann, Head of Corporate International Relations and Government Affairs at Lufthansa. He emphasized the company’s commitment to achieving industrial-scale production and market introduction of e-kerosene at competitive prices in collaboration with eFuel Alliance partners.
As per the press release, Ralf Diemer, CEO of the eFuel Alliance, noted that the organization provides a platform for companies across various sectors to exchange ideas and enhance the public and political discourse surrounding renewable fuels. “Lufthansa’s active membership strengthens our global platform and adds a key player in the industrialization of the market,” he said.
Under the ReFuelEU Aviation initiative, aviation is the only sector regulated by European lawmakers, with specific blending quotas for renewable fuels set for 2050. Lindemann pointed out that the high costs of SAF create a significant competitive disadvantage for European airlines compared to their global counterparts. “To ensure fair competition, it is essential that all airlines, both in Europe and beyond, contribute to the financing of SAF.”
At the EU level, financing options for e-fuel producers are already in place, including the ‘Hydrogen Bank’ and the ‘Innovation Fund,’ along with a limited number of free emissions trading certificates for aviation to help mitigate the cost differences between renewable and fossil fuels. However, Diemer cautioned that the current regulatory framework may put European airlines and hubs at risk from international competitors. “The necessary implementation mechanisms are lacking. We need solutions that balance climate protection with competitiveness. Together with our members and Lufthansa, which has developed implementation proposals, we aim to assess current strategies and present viable solutions.”