MB Energy and Zaffra Partner to Commercialise eSAF in Europe

European aviation fuel infrastructure moves closer to synthetic supply

MB Energy and Zaffra have signed a non-binding memorandum of understanding to assess a strategic partnership focused on commercialising electro-sustainable aviation fuel across Europe. The agreement positions MB Energy as a potential offtaker and logistics partner for future Zaffra volumes. This matters because eSAF projects need more than technology. They require storage, blending, logistics, and airport-supply infrastructure to function commercially.

Zaffra develops electro-sustainable aviation fuel. MB Energy operates fuel supply and distribution infrastructure. The collaboration aims to support aviation’s transition to lower-carbon fuels while strengthening European energy security. Under the memorandum, MB Energy would take eSAF volumes from Zaffra’s global project portfolio and design distribution concepts across its markets and airline customers.

The deal addresses a known bottleneck. Synthetic fuel projects struggle to move from development to bankable offtake agreements. Without credible buyers and delivery routes, producers cannot secure finance. Meanwhile, airlines need guaranteed supply to meet regulatory targets.

Brandenburg eSAF facility targets 30,000 tonnes annual production

A central element in Zaffra’s pipeline is the Brandenburg eSAF project in Schwedt, Germany, developed with ENERTRAG. The facility is planned to produce over 30,000 tonnes of eSAF per year. Zaffra states the project will reduce fossil CO₂ emissions by at least 100,000 tonnes annually.

The Brandenburg site will use biogenic CO₂ and renewable hydrogen via Power-to-Liquid technology. This production pathway captures carbon from biological sources rather than fossil reserves. Renewable hydrogen comes from electrolysis powered by renewable electricity. The combination allows the facility to produce drop-in aviation fuel with significantly lower lifecycle emissions than conventional jet kerosene.

Zaffra describes the Brandenburg project as Germany’s largest industrial-scale production facility for electro-sustainable aviation fuels. The project represents a step beyond pilot or demonstration scale. However, final investment decisions and construction timelines have not been publicly confirmed. The memorandum with MB Energy signals progress toward securing offtake, which is a prerequisite for project financing.

MB Energy has also signed agreements with Nordic Electrofuel and P2X-Europe to build long-term eSAF supply. This indicates the company is positioning itself as an infrastructure and commercialisation partner in the synthetic fuels segment. The pattern suggests MB Energy is building a portfolio of eSAF suppliers rather than relying on a single source.

ReFuelEU Aviation mandate creates commercial demand for synthetic fuels

European aviation fuel supply is subject to ReFuelEU Aviation requirements. The regulation mandates 6% sustainable aviation fuel by 2030. Within that total, 1.2% must come from synthetic fuels such as eSAF. This creates a legal obligation for fuel suppliers and airlines operating in the European Union.

Consequently, eSAF is shifting from a policy concept to a supply-chain requirement. Airlines cannot meet the 2030 target through conventional biofuels alone. Synthetic fuels must form part of the blend. This changes the commercial calculus for fuel producers, logistics providers, and airport operators.

Zaffra has pursued other European partnerships to meet this demand. The company signed an agreement with Moeve to assess eSAF facilities in southern Spain. That agreement was explicitly tied to ReFuelEU Aviation compliance. Multiple projects across different geographies reduce concentration risk and improve the likelihood that sufficient volumes will reach market by 2030.

The challenge is that eSAF production costs remain higher than fossil jet fuel. Airlines face cost pressure from ticket prices and fuel hedging. Infrastructure providers need revenue certainty to justify capital investment. Regulatory mandates create demand, but commercial viability depends on cost reduction, subsidies, or carbon pricing mechanisms that close the gap.

Logistics infrastructure determines whether eSAF reaches aircraft

Producing eSAF is one task. Delivering it to aircraft is another. Synthetic aviation fuel must be transported from production sites to airports, blended to meet aviation standards, stored safely, and delivered through existing fuelling systems. This requires coordination between producers, pipeline operators, storage facility managers, and airport fuel suppliers.

MB Energy’s role in the partnership is to provide this infrastructure. The company would design an end-to-end logistics concept for distribution across its markets and airline customers. This includes physical transport, quality assurance, blending ratios, and documentation for sustainability certification. Without these logistics arrangements, eSAF cannot be integrated into airline fuel supply chains.

Zaffra’s technology claims lifecycle emissions cuts of up to 100% versus fossil jet fuel. This figure depends on the carbon intensity of the electricity used for hydrogen production and the source of the CO₂ feedstock. Biogenic carbon from waste or sustainable biomass can achieve near-zero lifecycle emissions if renewable electricity powers the process. Fossil-based electricity or CO₂ from fossil sources would reduce the emissions benefit considerably.

Airlines purchasing eSAF need transparent emissions accounting. Sustainability certifications must verify the carbon intensity of each fuel batch. This requires traceability from production through blending and delivery. MB Energy’s logistics infrastructure would need to maintain this documentation alongside physical fuel handling.

Commercial readiness depends on offtake agreements and project finance

The memorandum between MB Energy and Zaffra is non-binding. It commits both parties to assess a partnership, not to execute one. However, the announcement signals growing commercial readiness in Europe’s synthetic aviation fuel market. Producers and infrastructure operators are moving toward binding agreements that can support final investment decisions.

Project finance for eSAF facilities requires credible offtake commitments. Lenders need evidence that future production will be sold at predictable prices. Airlines and fuel suppliers can provide this through long-term purchase agreements. MB Energy’s involvement suggests such agreements are under negotiation, though commercial terms have not been disclosed.

The Brandenburg eSAF project will require substantial capital investment. Power-to-Liquid facilities involve electrolysers, carbon capture equipment, Fischer-Tropsch reactors, and refining infrastructure. Capital costs per tonne of eSAF produced remain high compared to conventional refining. Reducing these costs depends on scaling production, improving technology efficiency, and securing lower-cost renewable electricity.

Public funding mechanisms may support early-stage eSAF projects. Germany has allocated funding for hydrogen and Power-to-Liquid initiatives as part of its climate strategy. European Union programs also provide grants and loan guarantees for renewable fuels projects. Zaffra’s ability to secure such funding will influence the Brandenburg project timeline.

Key facts for UK businesses monitoring aviation fuel markets

• MB Energy and Zaffra signed a non-binding memorandum of understanding to assess commercialising electro-sustainable aviation fuel across Europe, with MB Energy as a potential offtaker and logistics partner.
• Zaffra’s Brandenburg eSAF project in Schwedt, Germany, is planned to produce over 30,000 tonnes of eSAF annually, reducing fossil CO₂ emissions by at least 100,000 tonnes per year.
• ReFuelEU Aviation mandates 6% sustainable aviation fuel by 2030, including 1.2% from synthetic fuels like eSAF, creating a legal requirement for fuel suppliers and airlines in the European Union.
• The partnership addresses a commercial bottleneck by connecting eSAF production with storage, blending, logistics, and airport-supply infrastructure needed to deliver synthetic fuel at scale.
• MB Energy has also signed agreements with Nordic Electrofuel and P2X-Europe, indicating a strategy to build a diversified eSAF supply portfolio across multiple European producers.
• Zaffra claims eSAF can deliver lifecycle emissions cuts of up to 100% versus fossil jet fuel, depending on the carbon intensity of electricity and CO₂ feedstock used in production.

Supply chain implications for businesses with aviation exposure

UK businesses with significant air freight requirements or corporate travel budgets should monitor eSAF developments. Airlines will pass through the cost of meeting ReFuelEU Aviation mandates. Ticket prices and cargo rates will reflect the premium between synthetic fuels and conventional jet kerosene. Finance teams should model this cost increase when forecasting travel and logistics budgets beyond 2030.

Companies bidding for public sector contracts may face questions about aviation emissions in tender submissions. Carbon reporting requirements under PPN 06/21 already apply to central government suppliers. As sustainability criteria extend to wider public procurement, businesses will need to demonstrate how they account for Scope 3 emissions from air travel and freight.

Manufacturers with European supply chains should consider how fuel mandates affect logistics costs. Air freight remains essential for time-sensitive components and high-value goods. If synthetic fuel premiums increase transport costs, businesses may need to adjust inventory strategies, supplier locations, or delivery schedules to manage expenses.

eSAF production creates opportunities in related sectors. Renewable electricity generation, hydrogen production, carbon capture technology, and specialised logistics services all support the synthetic fuels value chain. UK businesses with capabilities in these areas may find commercial opportunities as European eSAF projects reach construction and operation phases.

Regulatory context and certification requirements

ReFuelEU Aviation is part of the European Union’s Fit for 55 package. It applies to fuel suppliers operating at EU airports and to flights departing from those airports. The regulation sets escalating blending mandates through 2050, with interim targets at 2030, 2035, 2040, and 2045. Synthetic fuel sub-targets increase alongside overall SAF percentages.

Fuel suppliers must demonstrate compliance through sustainability certification. The EU’s Renewable Energy Directive defines eligible feedstocks and production pathways. Only fuels meeting lifecycle emissions thresholds qualify toward mandates. Therefore, eSAF producers must maintain documentation proving renewable electricity use and biogenic carbon sourcing. Third-party auditors verify these claims.

Airlines operating between the UK and EU will encounter these requirements on European routes. Post-Brexit, UK aviation fuel policy may diverge from EU rules. However, UK airlines serving EU airports must comply with ReFuelEU Aviation for those flights. This creates complexity for fuel procurement and emissions accounting across mixed route networks.

The UK has signalled its own SAF mandate, though details differ from the EU approach. Businesses should track both regulatory regimes if they operate across UK and European markets. Compliance support for carbon reporting and ESG obligations can help navigate these overlapping requirements.

Technology and production pathway considerations

Power-to-Liquid technology combines hydrogen from electrolysis with captured CO₂ to produce synthetic hydrocarbons. The process uses renewable electricity to split water into hydrogen and oxygen. Separately, CO₂ is captured from biogenic sources such as biomass plants, biogas facilities, or industrial processes using biological feedstocks. The hydrogen and CO₂ are combined via Fischer-Tropsch synthesis to create liquid fuels chemically identical to conventional jet kerosene.

This production pathway allows eSAF to function as a drop-in fuel. Aircraft do not require modifications to use synthetic aviation fuel. Existing engines, fuel systems, and airport infrastructure remain compatible. Consequently, eSAF can be blended with conventional jet fuel at varying ratios without technical constraints. Regulatory approvals already permit up to 50% synthetic fuel in blends, with research underway to qualify 100% synthetic fuel use.

The carbon intensity of eSAF depends entirely on input sources. Renewable electricity with low emissions intensity produces hydrogen with minimal carbon footprint. Biogenic CO₂ from sustainable sources avoids adding fossil carbon to the atmosphere. Together, these inputs can achieve lifecycle emissions close to zero. However, if electricity comes from fossil generation or CO₂ from fossil sources, the emissions benefit disappears.

Transparency in sustainability claims is essential. Airlines purchasing eSAF need verifiable data on electricity sources and CO₂ feedstocks. Certification schemes provide this assurance, but businesses should scrutinise the detail. Generic claims about emissions reductions without supporting documentation offer little value for carbon accounting or regulatory compliance.

What UK businesses should consider

Companies with aviation-dependent operations should assess how eSAF mandates affect costs and compliance obligations. Air travel and freight will become more expensive as synthetic fuel premiums take effect. Budgeting for these increases now avoids surprises when mandates enforce blending requirements.

Businesses reporting Scope 3 emissions should understand how aviation fuel changes affect carbon inventories. If suppliers or logistics providers switch to eSAF blends, the emissions factor for air travel decreases. Updated emissions data must reflect actual fuel composition, not default factors based on conventional kerosene. This requires coordination with airlines and freight carriers to obtain accurate fuel-use information.

Procurement teams managing supplier sustainability criteria should include aviation emissions in assessments. If your supply chain relies on air freight, the fuel your logistics providers use matters. Suppliers using higher eSAF blends offer lower emissions intensity. This may become a differentiator in tender evaluations, particularly for public sector contracts with strict carbon reduction requirements.

Finally, businesses exploring nature-positive investments or carbon offsetting strategies should recognise that aviation emissions are difficult to eliminate entirely. eSAF reduces emissions but does not remove the need for broader carbon management. A credible net-zero strategy addresses aviation through fuel switching, travel reduction, and residual offsetting in combination.

Where to find further information

The International Energy Agency’s sustainable aviation fuels overview provides technical background on production pathways and global deployment trends. For European regulatory detail, the European Commission’s ReFuelEU Aviation initiative page explains mandate timelines and compliance mechanisms.

UK businesses should monitor announcements from the Department for Transport regarding domestic SAF policy. The UK government has committed to a SAF mandate but has not finalised implementation details. Official guidance will clarify how UK rules align with or diverge from EU requirements.

Airlines and fuel suppliers will publish information about eSAF availability and pricing as supply agreements mature. Businesses should engage directly with their travel and logistics providers to understand how fuel mandates will affect service costs and contract terms.