Spain Joins Growing European Push for Synthetic Sustainable Aviation Fuel as Iran Crisis Exposes Fossil Fuel Vulnerability

Spain is intensifying its commitment to synthetic sustainable aviation fuel (eSAF) amid growing concerns over fossil fuel dependency highlighted by the recent Middle East crisis. A coalition of more than 21 Spanish organisations, including airlines, manufacturers, and renewable energy producers, has urged the Spanish government to back its political support for eSAF with a concrete financial commitment ahead of the EU Transport Council meeting in June 2026. This unified call aims to secure Spain’s participation in the first European eSAF pilot auction, which is designed to stimulate industrial-scale production and reduce aviation’s reliance on fossil fuels. The urgency of this push is underscored by the geopolitical risks exposed by the Iran crisis, which disrupted oil supply routes through the Strait of Hormuz and caused jet fuel prices to more than double. The crisis revealed Europe’s vulnerability, with around 30% of its jet fuel supply dependent on this corridor. Transport & Environment (T&E) analysis highlights that the added cost from fossil fuel market instability far exceeds the incremental costs imposed by European climate policies, with passengers on long-haul flights facing a fuel price premium up to 29 times higher than the cost of complying with ReFuelEU mandates. This situation has prompted calls for eSAF investment as a strategic hedge against future energy shocks and a step toward European energy sovereignty. The coalition identifies three main barriers to private investment in eSAF production: uncertainty over long-term revenue streams, technological risks associated with pioneering projects, and the mismatch between the long asset life of eSAF plants and shorter buyer contracts. To overcome these challenges, they propose a two-sided auction mechanism managed by a publicly backed intermediary, similar to Germany’s H2 Global model. This approach would provide predictable revenues for producers and competitive prices for airlines, effectively reducing investment risks and accelerating market development. Spain’s participation in the eSAF Early Movers Coalition signals political intent, but the coalition stresses that this must be matched by budgetary commitments. Germany has already pledged up to €2 billion towards launching an eSAF auction, with Luxembourg and Portugal also showing interest. The coalition warns that without financial backing before the June EU Transport Council, Spanish projects risk exclusion from the pilot auction. They call on the government to actively engage in shaping the auction design, allocate funding from EU recovery and emissions trading revenues, and ensure cross-ministerial coordination to unlock necessary resources. The coalition’s appeal reflects Spain’s growing industrial activity in eSAF development, supported by existing allocations from the European Hydrogen Bank for maritime and aviation projects. Their coordinated effort aims to position Spain as a key player in Europe’s transition to sustainable aviation fuels, securing both environmental benefits and industrial competitiveness. The upcoming EU Transport Council meeting represents a critical juncture for Spain to convert political support into tangible financial commitment and help drive the continent’s clean aviation ambitions forward.