Germany Awards €350M Grant for Largest Sustainable Aviation Fuel Plant

This article is based on an official press release from ENERTRAG and ZAFFRA.

The German federal government and the state of Brandenburg have officially awarded a €350 million grant to the “Brandenburg eSAF” project, marking a significant milestone in the development of sustainable aviation fuels (eSAF). According to a joint press release from ENERTRAG and ZAFFRA, the funding will support the construction of Germany’s largest industrial-scale eSAF production facility at the PCK refinery in Schwedt.

The project, previously known as “Concrete Chemicals,” represents a total investment exceeding €500 million. The facility is being developed by renewable energy company ENERTRAG and eSAF specialist ZAFFRA, a joint venture between Danish clean energy technology firm Topsoe and South African chemicals and energy group Sasol.

Once operational, the plant is designed to cover approximately 25 percent of Germany’s national eSAF blending obligation under the European Union’s ReFuelEU Aviation Regulation. The grant, which includes €245 million from the federal government and €104 million from Brandenburg, is the largest public funding award for a Power-to-Liquid project in Europe to date, according to the official release.

Scaling Up Sustainable Aviation Fuel

The Brandenburg eSAF facility aims to produce more than 30,000 tonnes of sustainable aviation fuel annually starting in 2030. The production process relies on green hydrogen generated through electrolysis powered by renewable electricity, combined with biogenic carbon dioxide.

Innovative Power-to-Liquid Process

According to the project partners, the biogenic CO2 will be supplied by LEIPA Georg Leinfelder, a local paper manufacturer in Schwedt. The green hydrogen will primarily be sourced via the H2 core network, specifically Gascade’s FLOW pipeline, supplemented by an on-site electrolysis plant. These feedstocks are then converted into eSAF using a Fischer-Tropsch synthesis process provided by ZAFFRA’s G2L eFuels platform.

The resulting fuel is expected to deliver lifecycle greenhouse gas reductions of more than 90 percent compared to conventional kerosene. The press release notes that the fuel is ASTM-certified for immediate use in existing aircraft infrastructure.

Regional Investment and Job Creation

Beyond its environmental goals, the Brandenburg eSAF project is positioned as a key driver for regional economic development and European energy security. By producing liquid fuel domestically using local renewable electricity, the initiative aims to reduce the aviation sector’s reliance on imported fossil fuels.

Securing the Industrial Future of Schwedt

The facility is projected to create approximately 150 permanent skilled jobs at the Schwedt site, along with up to 1,500 jobs during the construction phase. This investment is intended to reinforce the PCK refinery’s role in the local economy as it transitions toward a low-carbon model.

“Brandenburg eSAF brings together what belongs together: renewable energy from the region, Schwedt’s industrial heritage, and clear political commitment from federal and state governments. The result is a fuel that makes aviation climate-neutral and secures skilled jobs in the Uckermark region,” stated Dr. Gunar Hering, CEO of ENERTRAG, in the press release.

Engineering studies for the project are currently underway, led by the Griesemann Group, which was appointed in April 2026. The partners are targeting a Final Investment Decision (FID) by the end of 2027, with production scheduled to commence in 2030.

AirPro News analysis

At AirPro News, we note that the €350 million public investment in the Brandenburg eSAF project underscores the growing political and financial momentum behind Power-to-Liquid technologies in Europe. As the aviation industry faces stringent decarbonization mandates under the ReFuelEU Aviation Regulation, securing domestic, industrial-scale production of eSAF is becoming a strategic priority for national governments. The collaboration between established renewable energy developers and specialized chemical engineering firms highlights the complex, cross-sector partnerships required to bring these capital-intensive facilities online. If the 2030 production targets are met, this facility will play a critical role in proving the commercial viability of synthetic aviation fuels.

Frequently Asked Questions

What is the Brandenburg eSAF project?

It is an industrial-scale production facility for sustainable aviation fuels (eSAF) being built at the PCK refinery in Schwedt, Germany, developed by ENERTRAG and ZAFFRA.

How much funding did the project receive?

The project received a €350 million grant, split between the German federal government (€245 million) and the state of Brandenburg (€104 million).

When will the facility start producing fuel?

Production is scheduled to begin in 2030, with a target of producing more than 30,000 tonnes of eSAF annually.

Sources

• ENERTRAG and ZAFFRA Press Release