Finland has the opportunity to become a pioneer in synthetic aviation fuel

From the reader. The aviation industry will inevitably switch from fossil fuels to renewable fuels. The EU already requires that airlines operating in Europe must use at least two percent renewable fuel, and from 2030 also synthetic fuel. However, the challenge is that the production of synthetic fuel does not yet meet the demand of the coming years.

Norwegian has concretely promoted the use of renewable aviation fuel. The company operates a route in Denmark with a 40 percent SAF mix and Norwegian Defense Forces flights with a 15 percent mix. SAF stands for renewable aviation fuel, whose emissions are up to 80 percent lower during its life cycle than regular fuel. In addition, Norwegian has partnered with a synthetic aviation fuel manufacturer Norwegian e-Fuelin with from 2023.

Good conditions in Finland

In addition to reducing emissions, synthetic fuels play a significant role in energy security. The Nordic countries are still dependent on imported fuels, and supply chain disruptions can quickly weaken society’s ability to function.

Finland now has good conditions for building new industry and strengthening security of supply. The Norwegian company Norsk e-Fuel is currently investing to start the production of synthetic fuel in Imatra, Rauma and Tornio. However, the progress of the projects requires political support. A predictable operating environment is crucial for large investments, and at the same time the green transition must be implemented cost-effectively. This requires market-initiating mechanisms that allow prices to fall as production increases.

That is why it is encouraging that the Finnish government has already committed to this goal by joining the EU’s eSAF Early Movers coalition. The goal of the coalition is to promote the eSAF market with various economic mechanisms that support both production and demand. This range of means can include, for example, competitive support models, such as two-way auctions, which offer producers long-term income security and buyers competitive contracts.

Such actions are exactly what is needed to accelerate the production of synthetic fuel. Regardless of Finland’s economic situation, investments in future growth are essential. Finland now has a great opportunity to take a leading role in the change and attract new investments to the country.

SAF mechanism for emissions trading

One key means is also the development of the SAF mechanism for emissions trading. The current system is not sufficient in terms of volume and does not sufficiently support European production. It should be reformed in such a way that emission rights would be granted based on long-term contracts with priority, and not only after the fuel has been used, which would improve the financing of projects.

By acting in this way, we can together put Finland at the forefront of the green transition and at the same time support the crisis resistance and competitiveness of Europe as a whole.