Production and market ramp-up

Funding measure:

Market ramp-up of e-kerosene

Based on current knowledge, it will hardly be possible to electrify medium- and long-haul flights in air transport. Therefore, air transport will probably continue to rely on liquid fuels in the long term. However, power-to-liquid kerosene (PtL kerosene) can be used to make it climate-neutral in the future. This funding measure is intended to provide dedicated support for PtL kerosene in Germany.

To counteract the first-mover disadvantage, the Federal Ministry of Transport (BMV) is promoting the market ramp-up of PtL kerosene. To this end, the difference between production costs and revenues is to be reimbursed. Specifically, production facilities with capacities of at least 10,000 tonnes of PtL fuel per year are to be subsidised, with at least 55% of production capacity to be used for PtL kerosene. For technical reasons, PtL kerosene production always generates certain quantities of PtL diesel and PtL petrol, which can be used in particular in shipping and road freight transport.

Background to the funding

The technical processes for producing PtL kerosene have been thoroughly researched, but they have yet to be demonstrated in a fully integrated process chain on an industrial scale. At present, the market ramp-up of PtL kerosene is primarily hampered by its high production costs, which are many times higher than those of fossil fuels. However, it is assumed that production costs will fall sharply as the market becomes more established, which will increase the economic competitiveness of PtL kerosene. However, this expected cost degression also means that stakeholders are currently holding back on investments strategically in order to only enter production once expensive optimisation processes have been developed.

Funding conditions

Detailed information and funding conditions will be announced upon publication of the funding guidelines.

Current information

The BMV is currently planning to promote eSAF in order to cushion the first-mover disadvantage and stimulate investment in eSAF systems, thereby contributing to its establishment on the market.

FAQ on funding

What is being funded?

Funding will be provided for the production of PtL fuels, with a focus on PtL kerosene. The funding design is currently being developed.

Who is eligible for funding?

Commercial enterprises are eligible for funding, with small and medium-sized enterprises (as defined by the EU) particularly encouraged to apply.

How does the selection process work?

The Federal Ministry of Transport (BMV) will commission a project management agency to implement the funding measure. Until this has been decided, NOW GmbH will provide general information on the funding guidelines.