Today : Jan 15, 2025
Climate & Environment
15 January 2025

Portugal Advances Toward Sustainable Aviation Fuel Production

Government plans to lead the way in sustainable aviation fuel as part of decarbonization efforts.

LISBON - Portugal's government is embarking on significant strides toward sustainable aviation with plans to produce sustainable aviation fuel (SAF). Energy Minister Maria da Graça Carvalho has shared insights indicating Portugal's potential to emerge as a frontrunner within this growing sector.

The production of SAF is deemed integral for promoting decarbonization within civil aviation. Carvalho articulated the advantages Portugal possesses, such as ample renewable energy resources available at competitive prices. This initiative has already garnered interest from numerous companies eager to engage with the government, reflecting optimism surrounding Portugal's capabilities.

The push for sustainable fuel production aligns with broader European initiatives, such as the European Green Deal, which sets forth ambitious goals for net-zero emissions by 2030. To realize this vision, the Portuguese government is enhancing regulations and incentives. The latest rules, approved by the Cabinet in October 2024, will see the transfer of up to €40 million from carbon tax revenues to aid decarbonization efforts within the aviation sector.

Under the National Roadmap for Aviation Decarbonisation (RONDA), which targets execution by 2026, the funds will support the development of SAF and sustainable aviation electricity fuels (ISAF). According to Minister Carvalho, the establishment of the Climate Agency is expected to play a pivotal role, with plans to launch production tenders as soon as early 2025. "The Climate Agency should already be up and running, and one of the first priorities will be to launch this tender," she noted.

Currently, airlines are mandated to use 2% SAF since January 2023, with the target poised to increase over the years, culminating with significant usage by 2050. This requirement places additional pressure on the aviation industry, which has shown concern over the scarcity of SAF production capabilities, leading to increased fuel prices for consumers.

The Minister discussed the challenges posed by the limited availability of SAF, which is chiefly derived from materials such as used cooking oil. Companies, including the state-run TAP Air Portugal, have begun to implement surcharges due to these elevated fuel costs, impacting the pricing of air travel. This scenario emphasizes the government's urgent need to bolster domestic production capabilities and ease constraints faced by the aviation industry.

Through these efforts, Portugal aims to not only reduce its carbon footprint but also position itself as a key player in the sustainable aviation fuel market globally. This aligns with broader European objectives, showcasing Portugal’s commitment to innovation, sustainability, and collaboration to meet pressing climate goals.

The continuous development of regulatory frameworks and financial support mechanisms is expected to pave the way for ambitious production goals. With the backing of both government initiatives and private sector engagement, Portugal is set to make substantial contributions to the aviation sector's transition to greener fuels.

Investments and initiatives such as these position Portugal as not just passive observers but active contributors to the international discourse on climate change and sustainability. This proactive approach will have far-reaching effects, enabling the country to realize its emissions targets effectively and fostering meaningful progress toward achieving net-zero emissions.

Moving forward, keeping the pressure on for innovation, efficiency, and sustainability will be key, as the aviation sector navigates the headwinds of climate responsibilities. The path to producing sustainable aviation fuel stands as both imperative and promising, as the global community watches with growing anticipation.