France has introduced a double-sided auction mechanism to support the development of electro-sustainable aviation fuel (e-SAF), meaning final investment decisions on e-SAF projects are more likely, in its 2027 draft budget.
Double-sided auction mechanisms allow supply and demand to be brought out simultaneously, as they bridge the gap between producers and consumers in uncertain sectors such as e-fuels. Due to inclusion in the budget, the scheme should confirm160,000 tonnes of e-SAF production a year – matching the 2% mandate set by ReFuelEU Aviation for 2032 – and around €3 billion of private investment.
Also within the draft budget is the country’s entry into the Incentive for the Reduction of the Carbon Intensity of Fuels, and a €1.2 billion allocation to finance the second tranche of the mechanism supporting the production of low-carbon hydrogen.
Nicolas Brahy, President of France Hydrogène, commented: “The French hydrogen sector is at a pivotal moment, with major final investment decisions in 2027. The [document] presented by the government provides an adequate response. If these three measures are passed, France’s potential will finally be transformed into industrial investments.”
