GCC could make synthetic aviation fuel 40% cheaper than in Europe, Acwa says
An Acwa executive told Reuters that Gulf states could produce e-SAF about 40% cheaper than Europe, using low-cost solar power and planned regional demand.
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what happened
Gulf Cooperation Council countries could produce electro-sustainable aviation fuel (e-SAF) at costs roughly 40% below European levels, according to a senior figure at Acwa, the Saudi utility projects developer. He said cheap solar power and the region's roughly 10% share of global air passengers give it a strong position.
Speaking at the WETEX 2026 event in Dubai on Tuesday, he noted that Europe's 2030 mandate would need around 600,000 tonnes of e-SAF, while current regional capacity stands near 20,000 tonnes. He estimated that a 1% regional e-SAF mandate by 2030 would require 1.3 to 1.5 gigawatts of clean power and support output of 130,000 to 140,000 tonnes a year.
He urged regional aviation fuel mandates, two-sided auctions and certification schemes, along with commitments from 2028, to build domestic demand and pave the way for exports.
why it matters
For markets, this is a signal about possible future demand for alternative jet fuel and green hydrogen in the Gulf. The remarks concern proposals and plans rather than final decisions or funded projects, so they have little effect on current oil and jet fuel conditions. Future mandates and auctions will be the key trigger to watch.
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- GCC could produce synthetic aviation fuel 40% cheaper than Europe: Acwa executive — Reuters, 21 October 2026 at 04:43 UTC
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