Project SkyPower Issues 10 Recommendations for 2026 e-SAF Auction Pilot to Unlock First Commercial-Scale Investments

Project SkyPower, a coalition of aviation ecosystem leaders, today delivered 10 recommendations to the European Commission designed to trigger the first commercial-scale Final Investment Decisions (FID) for synthetic Sustainable Aviation Fuel (e-SAF) in Europe by early 2027.

The recommendations focus on the design of the 2026 double-sided auction (DSA) pilot, a mechanism recently fast-tracked as a cornerstone of the EU’s Sustainable Transport Investment Plan (STIP). The inclusion of DSAs in the STIP marks a critical step forward for the aviation sector, directly addressing a core industry challenge: the mismatch between the long-term revenue certainty required by e-SAF producers and the shorter-term procurement cycles of airlines.

“ReFuelEU remains the backbone of Europe’s e-SAF market, providing the long-term demand signal essential for scale-up. Double-sided auctions are the critical next step – bridging the gap between the long-term revenue certainty producers require and the shorter-term procurement cycles of airlines. DSAs will therefore be critical to kick-start the market, enable FIDs for first-of-a-kind projects, and demonstrate that e-SAF is a bankable asset class this decade.” said Amy Hebert, CEO of Arcadia e-Fuels and Co-Chair of Project SkyPower.

Project SkyPower brings together high-profile CEOs from across the European aviation value chain on an urgent mission to unlock the potential of e-SAF, an innovative fuel which modelling shows could account for the majority of SAF volumes in 2050. In 2026, the coalition is focusing its efforts on delivering the policy and financial conditions that will get the first projects past FID.

The 10 recommendations for a successful 2026 pilot

To ensure the pilot results in at least one commercial-scale FID in 2026 or by early 2027, Project SkyPower’s open letter to DG MOVE outlines ten essential design elements across three areas:

• Eligibility criteria: The pilot should be restricted to producers with commercial-scale, e-SAF-only projects (>25 ktpa) located within the EU or EEA, and to buyers obligated under RefuelEU Aviation. Projects should demonstrate a credible pathway to FID in 2026 or by early 2027 and the development readiness to reach commercial operations date in 2030-2031.
• Auction design: To maximize capital efficiency, Member State funding should be aggregated into common auctions and intermediary risk managed through design safeguards and external guarantees. Contract durations should be standardized (10 years on the supply side, 3 on the demand side) but other bidding dispositions should provide participants with sufficient flexibility and protection. Winning bids should be selected solely based on price.
• Operational set-up: Contracts should be structured around delivery of neat e-SAF, with blending obligations resting with buyers in line with current infrastructure access and operational control. Member States should have the option to designate one or more established, open-access, liquid fuel delivery hubs and to define the geographic scope of uplift (ideally, any airport within the EU or EEA).

Project SkyPower’s members maintain that a successful 2026 pilot will provide the “proof-of-concept” needed to keep the EU’s e-SAF sub-mandates under the ReFuelEU legislation achievable. A successful pilot will serve as the definitive blueprint for a larger-scale EU mechanism from 2028, securing Europe’s leadership in the global clean-tech race.

About Project SkyPower Project SkyPower is a group of committed leaders from across the aviation value chain in Europe, working to make e-SAF a commercial reality this decade. With 14 CEOs and over 80 member organisations, we are coming together to break down the barriers facing e-SAF in Europe and accelerate progress towards scaling this innovative fuel. With representation from across the e-SAF ecosystem, we will leverage our diverse and deep expertise to collectively and collaboratively overcome the challenges faced by e-SAF and will unify our voice to send a clear message to the whole aviation ecosystem that these fuels are vitally important for our industry’s fight to reach our emissions reductions targets. Project SkyPower is an action-oriented initiative. With ambitious plans set within tight timelines, our primary focus is on concrete action and swift generation of valuable insights that can deliver our goals.