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KLM Supports National SAF Fund to Strengthen Dutch Economy

KLM endorses the Wennink report urging a national Sustainable Aviation Fuel fund and €151-187B investment by 2035 to support Dutch economic growth.

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KLM Backs Wennink Report, Calls for National SAF Fund to Secure Dutch Economic Future

On December 12, 2025, KLM Royal Dutch Airlines officially endorsed the findings of the newly released advisory report, “The Route to Future Prosperity” (De weg naar toekomstige welvaart). Authored by former ASML CEO Peter Wennink, the report outlines a strategic roadmap for the Dutch economy, emphasizing the need for significant investment to maintain national competitiveness.

Central to KLM’s endorsement is the report’s recommendation for the Dutch government to establish a national SAF fund. The airline argues that such a financial mechanism is critical to bridging the price gap between fossil kerosene and renewable alternatives, thereby accelerating the aviation sector’s transition to Sustainability without compromising the Netherlands’ economic standing.

The Wennink Report: A Call for Investment

Commissioned to analyze the Dutch Investments climate, the Wennink report warns that the Netherlands risks economic stagnation if it does not increase its annual growth rate to between 1.5% and 2%. According to the findings, maintaining current social standards, including healthcare, defense, and the energy transition, requires a massive capital injection.

The report estimates that an additional €151 billion to €187 billion in investment is needed by 2035 to modernize the economy. It identifies specific high-productivity sectors as essential pillars for future prosperity, including Artificial Intelligence, biotechnology, and aviation.

KLM has aligned itself with these findings, noting that a thriving business climate relies heavily on international connectivity. In its statement, the airline emphasized that the connectivity provided by Schiphol Airport is vital for Dutch trade and for attracting international headquarters to the region.

The Proposal for a National SAF Fund

A key pillar of the aviation Strategy proposed in the report is the creation of a government-backed fund dedicated to Sustainable Aviation Fuel. Currently, SAF is significantly more expensive than traditional fossil kerosene, often three to four times the price, and suffers from limited supply availability.

KLM posits that a national fund would act as a catalyst to solve these market inefficiencies. By subsidizing the cost difference, the fund would make SAF more affordable for Airlines, ensuring they remain competitive against non-EU carriers that may not face similar sustainability mandates. Furthermore, the fund is intended to de-risk long-term investments for energy companies, encouraging the construction of domestic refineries, such as the facilities planned in Delfzijl.

“Such a fund would enable the Netherlands to accelerate the production of alternative aviation fuels and make them more affordable, thereby accelerating the sector’s sustainability.”

— KLM Royal Dutch Airlines

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Strategic Competitiveness vs. Taxation

KLM used the release of the Wennink report to argue against unilateral national taxes or flight restrictions, which have been subjects of recent political debate in the Netherlands. The airline warns that such measures could harm the Dutch economy by reducing connectivity and driving business elsewhere.

Instead, KLM advocates for incentivizing sustainability. The airline suggests that the government must take a more active role in the energy transition rather than relying solely on industry mandates. According to the press release, “Real progress can only be achieved if government and industry work together and if the government takes a more active role.”

AirPro News Analysis

The endorsement of the Wennink report represents a strategic pivot for KLM, moving the conversation from “flight shaming” to economic necessity. By aligning its sustainability goals with the broader “Draghi-style” warnings about European competitiveness, KLM is positioning aviation not just as a transport sector, but as a geopolitical asset essential for the Netherlands’ survival as a trading nation.

However, this call for government funding comes amidst a complex backdrop. In 2024, KLM faced legal scrutiny regarding “greenwashing” allegations, with courts ruling that some “Fly Responsibly” advertisements painted an overly optimistic picture of SAF’s immediate impact. The push for a national fund can be interpreted as a tacit admission that the industry cannot achieve its 2030 and 2050 climate targets through market forces alone; without state intervention to lower the cost of SAF, the “green” transition remains economically unfeasible for legacy carriers.

Frequently Asked Questions

What is the Wennink Report?
Titled “The Route to Future Prosperity,” it is an advisory report authored by Peter Wennink (former CEO of ASML) that analyzes the Dutch investment climate and proposes strategies to boost economic growth and productivity.
Why does KLM want a national SAF fund?
Sustainable Aviation Fuel is currently much more expensive than fossil kerosene. A national fund would help bridge this price gap, making it affordable for airlines to use more renewable fuel while encouraging energy companies to build production facilities in the Netherlands.
How much investment does the report say is needed?
The report estimates that the Netherlands needs an additional €151 billion to €187 billion in investment by 2035 to modernize its economy and maintain social standards.

Sources

Photo Credit: KLM

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Sustainable Aviation

Asia-Pacific Aviation Growth and Sustainable Aviation Fuel Initiatives 2026

Asia-Pacific aviation growth faces decarbonization challenges with new SAF mandates and Airbus’s just transition strategy at Singapore Airshow 2026.

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This article is based on an official press release from Airbus and additional industry reporting regarding the Singapore Airshow 2026.

Asia-Pacific Aviation at a Crossroads: Balancing Growth with a “Just Transition”

As the aviation industry gathers for the Singapore Airshow 2026, the Asia-Pacific (APAC) region stands as the focal point of global aerospace growth. According to recent industry forecasts, APAC is projected to account for over 50% of global aviation growth between 2025 and 2026. However, this rapid expansion presents a critical challenge: reconciling a forecast 7.3% increase in passenger traffic with urgent decarbonization goals.

In a press release issued on February 2, 2026, Airbus outlined a strategy focused on a “just transition.” The European manufacturer argues that the adoption of Sustainable Aviation Fuel (SAF) in Asia-Pacific offers more than just environmental compliance; it presents a pathway for regional socioeconomic development and energy sovereignty.

The Socioeconomic Case for SAF

While the primary driver for SAF adoption globally has been carbon reduction, Airbus emphasizes that for the APAC region, the benefits are deeply tied to local economic resilience. The region possesses abundant feedstock potential, including agricultural residues, used cooking oil, and palm oil waste.

Turning Waste into Wealth

According to the Airbus announcement, utilizing agricultural waste for fuel production addresses multiple local issues simultaneously. In many parts of Asia, the burning of agricultural fields contributes significantly to seasonal air pollution. By converting this biomass into SAF, the region can reduce local smog while creating new revenue streams for rural communities.

Airbus describes this approach as a “just transition,” ensuring that the shift to green energy supports developing economies rather than hindering them. The manufacturer notes that developing local production capabilities also boosts “regional energy sovereignty,” reducing the reliance on imported fossil fuels.

“Given the broad socioeconomic diversity… Asia-Pacific is a prime place to demonstrate the possibilities for a just transition. Leveraging co-benefits could open opportunities to build community resilience.”

, Airbus Press Release, February 2, 2026

Regulatory Momentum and National Mandates

Beyond manufacturer initiatives, government policy in the region is hardening. Data released in conjunction with the Singapore Airshow highlights a wave of new mandates and targets aimed at accelerating SAF uptake.

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Most notably, Singapore has confirmed the introduction of a SAF levy for all flights departing from Changi Airport starting October 1, 2026. This levy is designed to fund a national 1% SAF target by the end of the year, with plans to scale to 3-5% by 2030.

Other regional developments include:

  • Japan: A set ambition for 10% SAF usage by 2030.
  • South Korea: A mandate of 1% SAF starting in 2027, rising to 10% by 2035.
  • India: A 1% mandate for international flights beginning in 2027.
  • Australia: A government commitment of AUD 1.1 billion in production incentives for low-carbon liquid fuels.

Technological Milestones at Singapore Airshow 2026

The push for decarbonization is also visible on the tarmac. During the Singapore Airshow, an Airbus A350-1000 is performing flying displays powered by a 35% SAF blend. The fuel, supplied by Shell Aviation, was produced via the HEFA-SPK pathway using used cooking oil and tallow.

New Partnerships

In a significant move for propulsion technology, Airbus, CFM International, and the Civil Aviation Authority of Singapore (CAAS) signed a Memorandum of Understanding (MOU) on February 2. This agreement establishes Singapore as the world’s first airport testbed for the “RISE” (Revolutionary Innovation for Sustainable Engines) program. The initiative aims to test “Open Fan” engine architecture, which targets a 20% improvement in fuel efficiency.

Additionally, Airbus and Cathay Group have reiterated their commitment to a US$70 million joint investment, originally announced in late 2025, to accelerate SAF production projects with commercial viability in the region.

AirPro News Analysis

While the regulatory and technological momentum is palpable, a stark reality remains. Industry data indicates that global SAF output reached only 1.9 million tonnes in 2025, representing a mere 0.6% of total jet fuel demand. With APAC passenger traffic expected to grow by 7.3% in 2026, the gap between demand for travel and the supply of green fuel is widening.

The “green premium”, where SAF costs 2x to 4x more than conventional jet fuel, remains the primary hurdle. While the “just transition” narrative provided by Airbus offers a compelling long-term vision for feedstock utilization, the immediate success of these initiatives will depend heavily on whether the new levies and investments can bridge the price gap quickly enough to meet the 2027-2030 mandates.

Frequently Asked Questions

What is the “Just Transition” in aviation?
In this context, it refers to decarbonizing aviation in a way that provides economic benefits to developing nations, such as creating jobs in rural areas by using agricultural waste for fuel production.

When does the Singapore SAF levy begin?
The levy applies to all flights departing Singapore starting October 1, 2026.

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What is the current global supply of SAF?
As of 2025, SAF production accounted for approximately 0.6% of total global jet fuel usage.

Sources:
Airbus,
IATA,
Civil Aviation Authority of Singapore

Photo Credit: Airbus

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Sustainable Aviation

FedEx Expands Sustainable Aviation Fuel Program to DFW and JFK Airports

FedEx expands sustainable aviation fuel use to Dallas-Fort Worth and JFK airports, supporting its carbon-neutral goals with 5 million gallons secured for 2025.

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This article is based on an official press release from FedEx.

FedEx Expands Sustainable Aviation Fuel Program to DFW and JFK Airports

FedEx has officially expanded its SAF program to include Dallas-Fort Worth International Airport (DFW) and John F. Kennedy International Airport (JFK). The logistics giant announced the move on January 29, 2026, marking a significant step in its “Priority Earth” sustainability roadmap. With these additions, FedEx now utilizes SAF at five airports across the United States.

According to the company’s announcement, the expansion is supported by World Fuel Services (WFS), which manages the supply chain and delivery of the fuel. The initiative positions FedEx as the first airline, cargo or passenger, to purchase SAF for regular commercial operations at DFW, a major global logistics hub.

The agreement covers the purchase of approximately 2 million gallons of “neat” (unblended) SAF for these two locations. When combined with agreements for other hubs, FedEx has secured a total of 5 million gallons of neat SAF for delivery throughout 2025.

Operational Details and Supply Chain

While the purchasing agreements are calculated in gallons of “neat” SAF, the fuel actually delivered to aircraft is a blend. Safety regulations currently prohibit the use of 100% SAF in commercial aircraft engines. Consequently, the fuel supplied to FedEx at DFW and JFK is a mixture containing a minimum of 30% neat SAF blended with conventional Jet A fuel.

World Fuel Services facilitates this supply, typically sourcing the renewable component from Valero’s Diamond Green Diesel (DGD) joint venture. The SAF is produced via the HEFA (Hydroprocessed Esters and Fatty Acids) pathway, utilizing waste-based feedstocks such as used cooking oil, animal tallow, and distiller’s corn oil. This production method allows for a lifecycle greenhouse gas (GHG) emissions reduction of up to 80% compared to standard petroleum-based jet fuel.

In a statement regarding the logistical achievement, Bradley Hurwitz, Senior Vice President of Supply & Trading at World Fuel Services, noted:

“FedEx’s purchase at DFW and JFK demonstrates how our aviation fuel distribution platform enables carriers to access lower-carbon fuel options with a robust supply chain designed for flexibility and scale.”

Strategic Context: The “Priority Earth” Goal

This expansion is part of FedEx’s broader strategy to achieve carbon-neutral global operations by 2040. The company has set an interim target to source 30% of its total jet fuel from alternative fuels by 2030. The addition of DFW and JFK complements existing SAF programs at Los Angeles International Airport (LAX), Chicago O’Hare (ORD), and Miami International Airport (MIA).

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Karen Blanks Ellis, Chief Sustainability Officer at FedEx, emphasized the progress made over the last year:

“Expanding SAF use by FedEx to include our operations at DFW and JFK caps off a successful year of SAF deployments coast-to-coast. While we know there remains work ahead to procure more SAF… we are proud of our steps forward.”

AirPro News Analysis

The introduction of SAF at Dallas-Fort Worth is particularly notable. While pilot programs have existed at DFW since 2021, they were largely limited to business aviation. FedEx’s commitment marks the first regular commercial adoption at the airport, signaling a shift from experimental to operational use in the cargo sector.

However, the industry faces significant headwinds. SAF currently trades at a premium of two to five times the price of conventional jet fuel. Furthermore, global production remains less than 1% of total jet fuel demand. While the “book and claim” system and government incentives like the U.S. Inflation Reduction Act help bridge the cost gap, the physical availability of SAF remains the primary bottleneck for large-scale adoption.

By securing 5 million gallons of neat SAF for 2025, FedEx is signaling consistent demand to producers, which is essential for stimulating the investment required to increase production capacity.

Stakeholder Commentary

Airport officials have welcomed the move as a validation of existing infrastructure capabilities. Because the blended fuel is a “drop-in” solution, it requires no modifications to airport storage tanks or hydration systems.

Robert Horton, Vice President of Environmental Affairs at DFW Airport, stated:

“FedEx’s SAF purchase reflects how airlines, airports, and fuel providers work together within existing airport infrastructure to support the development of more sustainable aviation operations.”

Frequently Asked Questions

What is “Neat” SAF?

“Neat” SAF refers to the pure, unblended sustainable fuel. It is not used in aircraft in this form due to safety regulations. Instead, it is blended with conventional jet fuel before delivery. Purchasing agreements often cite “neat” volumes to track the exact amount of renewable content purchased.

Where does FedEx use SAF?

As of early 2026, FedEx utilizes SAF at five U.S. airports: Dallas-Fort Worth (DFW), John F. Kennedy (JFK), Los Angeles (LAX), Chicago O’Hare (ORD), and Miami (MIA).

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What is the emission benefit?

The specific SAF used in this agreement, produced via the HEFA pathway, can reduce lifecycle greenhouse gas emissions by up to 80% compared to conventional jet fuel.

Sources

Photo Credit: FedEx

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Washington Launches Cascadia Sustainable Aviation Accelerator for SAF

The Cascadia Sustainable Aviation Accelerator launches with $20M funding to boost Pacific Northwest Sustainable Aviation Fuel production to 1 billion gallons annually by 2035.

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This article is based on official press releases from Alaska Airlines and Washington State University, as well as public announcements from the launch event.

Washington Leaders Launch Cascadia Sustainable Aviation Accelerator to Power PNW SAF Hub

On January 8, 2026, a coalition of government, industry, and academic leaders officially launched the Cascadia Sustainable Aviation Accelerator (CSAA). Unveiled at the Boeing Future of Flight in Mukilteo, Washington, the initiative aims to establish the Pacific Northwest as a global leader in the production and deployment of Sustainable Aviation Fuel (SAF).

According to official announcements, the accelerator is backed by $20 million in initial funding. This capital includes $10 million from Washington State’s Climate Commitment Act funds and a matching $10 million contribution from an anonymous philanthropic donor. The coalition has set an ambitious target: to scale regional SAF production to 1 billion gallons annually by 2035.

A Public-Private Coalition

The initiative represents a broad partnership designed to bridge the gap between policy, technology, and commercial viability. Washington Governor Bob Ferguson championed the launch, positioning it as both an economic engine and a critical climate solution for the state.

The coalition features major stakeholders across multiple sectors:

  • Aviation: Founding partners Alaska Airlines and Hawaiian Airlines have committed to using SAF to meet net-zero goals. Boeing, which hosted the launch, is providing technical expertise regarding aircraft compatibility.
  • Academia: Washington State University (WSU) will lead the research and development component of the initiative.
  • Corporate Demand: Major corporate consumers of air cargo and travel, including Amazon and Microsoft, are involved to help aggregate demand.
  • Government: In addition to the Governor’s office, the Port of Seattle and Snohomish County are key partners, with Snohomish County Executive Dave Somers serving as the CSAA Board Chair.

“We have all the pieces in place to ensure this once-in-a-generation economic opportunity is realized, and this accelerator will make that happen.”

, Governor Bob Ferguson, via official press release

Strategic Structure: Accelerator and Institute

To address the complex barriers facing the SAF market, the initiative is divided into two complementary arms: the Accelerator and the Institute.

The Cascadia Sustainable Aviation Accelerator (CSAA)

The CSAA focuses on market acceleration, financing, and policy advocacy. Its primary mission is to “de-risk” the industry for producers and investors. By harmonizing tax incentives and aggregating fuel demand from airlines and corporate partners, the Accelerator aims to create a stable market environment that encourages rapid scaling of production facilities.

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The Cascadia Sustainable Aviation Institute (CSAI)

The Institute will handle the technical and scientific challenges of SAF adoption. It will operate a new Sustainable Aviation Fuel Research and Development Center based at Paine Field in Snohomish County. While a permanent facility is scheduled for completion by 2029, the center will open in a temporary commercial space in the coming months.

A key feature of the Institute will be the world’s first “SAF Repository.” This facility will function similarly to a seed bank, collecting, indexing, and distributing fuel samples to researchers globally to standardize testing and certification processes.

“For aviation to remain strong and resilient in the decades ahead, sustainability must be part of its future.”

, Elizabeth Cantwell, WSU President, via WSU News

Industry Context and Regional Projects

Sustainable Aviation Fuel is widely considered the most viable near-term solution for decarbonizing long-haul aviation. Made from feedstocks such as agricultural waste, used cooking oil, or captured carbon, SAF can reduce lifecycle emissions by up to 80% compared to conventional jet fuel. However, current supply accounts for less than 1% of global jet fuel usage, and it remains significantly more expensive than fossil-based alternatives.

The Pacific Northwest is viewed as an ideal “test bed” for solving these problems due to its access to renewable hydroelectric power, forestry and agricultural residues, and a deep aerospace talent pool.

The Accelerator aims to support existing regional projects, including:

  • SkyNRG: A Dutch company planning a facility in Walla Walla, WA, to convert biogas into jet fuel.
  • Twelve: A carbon-transformation company backed by Alaska Airlines, currently building a plant in Moses Lake, WA, to produce fuel from CO2.
  • Montana Renewables: A producer in Great Falls, MT, which recently received a conditional loan guarantee from the Department of Energy to expand production serving the region.

“This is a systems issue that no one company can solve. You’ve got great companies… ready to use this fuel, but we have to make it available.”

, Guy Palumbo, Amazon Director of Public Policy, via launch event remarks

AirPro News Analysis

The launch of the Cascadia Sustainable Aviation Accelerator marks a shift from individual corporate sustainability goals to a systemic regional strategy. While the target of 1 billion gallons by 2035 is aggressive, the bifurcation of the initiative into an “Accelerator” (finance/policy) and an “Institute” (R&D) suggests a mature understanding of the bottlenecks.

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The primary challenge for the CSAA will be feedstock logistics. While the Pacific Northwest has abundant forestry and agricultural waste, the infrastructure to collect, transport, and process these materials at a scale capable of producing 1 billion gallons does not yet exist. Furthermore, the involvement of corporate giants like Amazon and Microsoft is critical; their willingness to pay a “green premium” for sustainable air cargo and travel could provide the demand certainty that producers need to secure financing for new plants.

Success will likely depend on how quickly the Institute can streamline the fuel certification process, which has historically been a slow hurdle for new SAF pathways.


Sources:

Photo Credit: Alaska Airlines

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