Berlin, 5 June 2024 – At the International Aerospace Exhibition (ILA) in Berlin, the results of the economic and technical feasibility study “NetZeroLEJ” were presented to German Federal Ministers Volker Wissing (Digital Affairs and Transport) and Robert Habeck (Vice-Chancellor, Federal Minister for Economic Affairs and Climate Action). The study was a collaborative effort by industry partners and Leipzig/Halle Airport, along with the states of Saxony and Saxony-Anhalt. Airbus, DHL, HH2E, and InfraLeuna worked together with Leipzig/Halle Airport to produce this study. The aim of “NetZeroLEJ” is to prepare for and implement the production and use of sustainable aviation fuels (SAF) on an industrial scale.
Robert Habeck commented: “This project to produce SAF in central Germany is a fantastic example of how we can approach the energy transition we are striving for in all areas in Germany while ensuring future prosperity. It clearly shows that producers and consumers – in this case, the energy and transport sectors – must work closely together to achieve our ambitious goals. As politicians, we must listen, engage, and ensure that the right framework conditions are created to keep Germany, and especially eastern Germany, attractive as a production location and reduce dependencies in our energy supply.”
The study provides the following insights for SAF production in Germany:
- Reduction of the Energy Price for Electrolyser Operation: Reducing the electricity price from €55 to €20 per MWh for the production of green hydrogen by electrolysis according to §13k EnWG could lower the SAF price by about 15%. This is because the costs of hydrogen are largely determined by electricity costs. Using excess wind and solar power to produce green hydrogen not only helps reduce the price of PtL-SAF but also decreases the compensations that German energy customers pay to renewable energy producers for energy they could produce but are not allowed to.
- Reduction of Interest Rates for Capital Borrowing: Each reduction of the interest rate by 1 percentage point along the value chain could reduce SAF costs by approximately €180 per tonne. About 20% of hydrogen costs result from capital costs. Lowering the interest rate would reduce capital costs and therefore hydrogen and SAF costs.
- Political Support and Regulatory Certainty: Political instruments and support programs are crucial for implementing the production of sustainable aviation fuels and establishing an efficient market in Germany. Clear guidelines, subsidies, purchase agreements, and legal frameworks reduce the risk for investors, ultimately leading to lower investment, financing, and SAF costs.
Germany has a unique opportunity to position itself as a leading player in the rapidly growing sector of renewable synthetic fuels. The essential prerequisite is to lower the currently high production costs, making SAF a competitive alternative to conventional kerosene. An early market entry is strategically advantageous, not only contributing significantly to CO2 emissions targets but also establishing a stable and resilient supply chain for renewable synthetic fuels. This also creates new jobs along the value chain of a sustainable industry and promotes structural change in the eastern German region of Saxony and Saxony
