Spain’s Push For Green Aviation

Could green energy lead Spain’s industrial future?

A recent call from the Airline Association ALA to the new Spanish Government urged them to implement incentives for biofuel production.

The move follows a commitment outlined in the PSOE’s electoral manifesto, which advocated for Spain to become a global leader in sustainable aviation fuel (SAF) exports.

Urgent Call For Government Action

On July 23, the ALA emphasized the necessity of government-backed incentives to bridge the significant cost gap between biofuels and conventional fuels. Currently, sustainable fuels are three to six times more expensive, a problem which is holding back its widespread adoption.

The previous Transport Minister, Raquel Sanchez, supported the initiative, and the PSOE promised to ‘develop an aid plan for the development of sustainable fuel production facilities’ in their electoral program.

The ALA is now pressuring new minister Oscar Puente to implement the plan swiftly. ‘It is a very great opportunity to lead the Spanish industry to lead its export of SAF worldwide,’ stated Carolina Herrero, Director of Communication and Institutional Relations at ALA.

European Mandates And National Goals

The industry’s push coincides with the European Parliament’s ReFuelEU Aviation initiative, which mandates a gradual increase in the use of sustainable fuels in European aviation, starting from two per cent next year to 70 per cent by 2050.

This directive underscores the importance of establishing Spain as a major SAF exporter. In 2019, biofuels constituted a mere 0.1 per cent of the total fuel used, while projections suggest that by 2050, Spanish aviation will require five million tons of SAF annually to meet decarbonization goals.

Global Context And Economic Impact

Globally, the SAF market is gaining traction, with countries like the United States offering significant tax benefits for biofuel producers.

Similarly, the United Kingdom allocated £165 million in 2022 to establish five efficient fuel production plants by 2025.

If Spain follows suit, it is estimated that the construction and production of 32 SAF plants could contribute €56,000 million to the GDP and create 270,000 new jobs.