Business · Energy & Commodities · 2 hrs ago
Most Spanish projects for alternative fuels lack launch plans
An Ecodes analysis found that Spain allocated €1.67 billion in public support to 24 projects making synthetic fuels and biofuels between 2021 and 2026.
The money came mainly from European funds, and only two of 20 synthetic-fuel projects are set to start: HyBizkaia and Luxia.
The other 18 face obstacles including high costs, uncertain demand and limited access to networks and supplies.
Synthetic fuels could help cut emissions from aviation, shipping and heavy road transport, but they can cost up to seven times more in early stages.
The European Union relies on imports for more than 95% of its aviation fuel and requires sustainable fuel to reach 6% of supply in 2030 and 70% by 2050.
The EU currently has no e-SAF plants, and meeting its 2030 target is estimated to require about nine.
Companies that fail to meet project milestones may have to repay their public funding.
An Ecodes analysis found that most Spanish projects for synthetic and biofuels have not secured the conditions needed to launch.
The analysis identified €1,668.9 million in public support for 20 synthetic-fuel projects and four biofuel projects between 2021 and 2026.
Only two synthetic-fuel projects, HyBizkaia and Luxia, have secured their launch, while the other 18 have not met the required conditions.
Ecodes cited economic viability, limited demand, high fuel costs, social acceptance, grid access and access to inputs as obstacles.
The projects are intended to support lower-emission transport, while the EU requires aviation fuel suppliers to increase the share of sustainable fuels over time.
- Who
- Ecodes, the Spanish foundation that analysed public support for fuel projects.
- What
- Most of the projects examined have not secured the conditions needed to launch.
- When
- The public support covered 2021 to 2026; the analysis was published on 28 October 2026.
- Where
- Spain.
- Why
- Projects face barriers including economic viability, limited demand, high costs, social acceptance, grid access and access to inputs.
This story does not have two clearly opposing sides.
Public support was linked to 20 synthetic-fuel projects and four biofuel projects in Spain.
La Vanguardia reported on Ecodes’ analysis of public support for the projects.
The Next Generation EU funds are due to end.
- Total public support
- €1,668.9 million
- Synthetic-fuel projects
- 20 projects received €1,254 million; two, HyBizkaia and Luxia, have secured their launch.
- Biofuel projects
- Four projects received €414.9 million.
- Aviation fuel
- The EU imports more than 95% of its aviation fuel supply.
- EU sustainable aviation fuel target
- 6% by 2030 and 70% by 2050
What people are saying
The other 18 projects have not met the conditions needed to launch, that is, their economic viability, often because of a lack of demand from airlines and shipping companies, influenced largely by the cost of synthetic fuel, which can be up to seven times higher in early stages, but also by social acceptance, lack of grid access and inputs.