SAF Industry at a Glance
Europe | May 2026
The key SAF market developments in May 2026 include:
Crude oil and petroleum product pricing continues to be elevated due to the ongoing conflict in the Middle East. Many governments (including the UK) are beginning to soften and lift sanctions on Russian energy, including crude oil imports and other petroleum-based imports that are Russian oil-derived.
Jet fuel and Brent crude oil spot pricing both saw decreases in the month of May. Jet prices saw a steeper decline compared to Brent pricing, leading to a reduction in crack spread. Crack spreads fell for the second month in a row but are still double what they were before the conflict in the Middle East began.
The European Union updated its Waste Shipment Regulation (RSR) EU 2024/1157. This revision introduces mandatory digital tracking of wastes including used cooking oil across feedstock supply chains to improve traceability and compliance with EU regulations.
The European Commission published a proposal that international carbon credits paid in the goods country of origin, and that comply with Article 6 of the Paris Agreement could be used to offset carbon costs implemented under the EU’s carbon border adjustment mechanism (CBAM).
The European Commission indicated that it is considering measures to align the ETS scheme with the EU's 2040 climate target. Proposed changes include a slower reduction in the supply of emissions allowances, which could see EU ETS allowances remain available into the 2040s rather than the cap reaching zero in 2039.
Despite the ongoing Middle Distillates shortage in Europe linked to the Iran Conflict, European Commission has confirmed that it would not be making changes to the SAF framework.
The Renewable Transport Fuel Association (RTFA) has called for the UK Government to amend the SAF Mandate to allow for bioethanol produced from British crops to be an eligible pathway to SAF via the AtJ route, similar to US AtJ projects.
Alcohol-to-Jet technology provider LanzaTech announced in May that it had selected Ghent, Belgium for its first commercial-scale AtJ SAF plant in Europe. The project will use LanzaTech’s AtJ technology and FLITE development consortium to produce 79,000 tpa of SAF and 9,000 tpa of RD.
Repsol announced the start of its renewable fuels plant in Puertollano, Spain. This plant will produce renewable diesel (200,000 tpa) from UCO and other waste feedstocks.
The Romanian Energy Ministry announced it would consult on a €500m EUR State Aid Scheme for biofuels, of which at least 80% is targeted at SAF and RD – with a max of €133m per project.
Northern Irish developer ClimatHtech Green Flight (part of CATAGEN) announced it had agreed at 15-year offtake with airline Loganair from a planned project using its eSAF and bioSAF modular technology which utilises biomass waste feedstock.
Topsoe announced that it is “hibernating” its SOEC electrolyzer facility in Herning, Denmark as they strategically move away from large-scale electrolyser production in the face of limited demand for green hydrogen.