Introduction
The growing vulnerability of fossil fuel supply chains, highlighted by the recent crisis in Iran, is pushing European nations to accelerate the adoption of sustainable aviation fuels (SAF). Spain has now joined this movement, with a broad coalition of over 21 companies, trade associations, and industry bodies urging the Spanish government to back political commitments with concrete economic measures. This call comes ahead of the June EU Transport Council, where key decisions on aviation decarbonization are expected.
The Call for Action
The coalition, representing stakeholders from airlines, fuel producers, and environmental groups, is pressing Madrid to translate its support for synthetic SAF into tangible financial incentives. They argue that without robust economic backing, the ambitious targets set by the EU’s ReFuelEU initiative may remain unattainable.
Economic Commitment Needed
The signatories emphasize that political declarations alone are insufficient. To spur investment in synthetic fuel production facilities, Spain must introduce subsidies, tax breaks, or production mandates. This would align with similar efforts in countries like Germany and France, which have already allocated significant funding for e-fuels (synthetic kerosene produced from renewable electricity and captured CO₂).
The Cost of Fossil Fuel Dependence
The Iran crisis has exposed the fragility of relying on volatile oil markets. The coalition points out that geopolitical instability adds a substantial premium to airline ticket prices.
Geopolitical Premium
According to the coalition’s analysis, the geopolitical oil premium costs passengers up to €88 per long-haul flight. This figure reflects the extra cost airlines incur due to price spikes caused by tensions in oil-producing regions, such as the ongoing Iran situation. This premium is not only a burden on travelers but also a drag on the aviation industry’s competitiveness.
Comparison with ReFuelEU Compliance
The cost of complying with the ReFuelEU mandate—which requires increasing shares of SAF in jet fuel—is far lower. The coalition calculates that the geopolitical premium is 29 times greater than the estimated compliance cost per flight. This stark contrast underscores that investing in domestic SAF production is not only environmentally beneficial but also economically rational.
Broader European Movement
Spain is not alone in this push. Across Europe, a growing number of governments and private stakeholders are advocating for synthetic SAF as a key solution for decarbonizing aviation. The European Commission’s ReFuelEU regulation, part of the Fit for 55 package, sets mandates for SAF blending starting at 2% in 2025 and rising to 70% by 2050. However, synthetic fuels—those produced via power-to-liquid (PtL) processes—are essential to meet the highest blending targets, as biomass-based SAF alone cannot fulfill demand.
Industry Support
Major airlines such as Iberia and Vueling have already announced pilot projects using synthetic SAF. Meanwhile, Spanish energy companies like Repsol are exploring PtL production plants. The coalition is urging the government to create a stable regulatory framework that de-risks private investments, enabling these projects to scale.
Conclusion
The Iran crisis serves as a wake-up call: fossil fuel dependence exposes the aviation sector to unpredictable price shocks and geopolitical risks. By backing synthetic SAF with economic commitments, Spain can lead the transition to a more secure and sustainable aviation fuel supply. The upcoming EU Transport Council is a critical moment for Madrid to turn its political support into action, aligning with the broader European push for synthetic aviation fuel.