Germany Sustainable Aviation Industry
Overview
Germany is one of the world’s leading aviation and aerospace nations. Every sixth passenger aircraft worldwide is assembled in Germany. That is about 17 percent of global aircraft production. The German aerospace industry generated a revenue of $48.2 billion in 2023. Germany strives to become the leading location for climate neutral aviation. UpLift, the open-source test center for sustainable aviation, is supporting this transition.
Sustainable Regulations and government supply targets
From 2025, mandatory sustainable aviation fuel (SAF) quotas will apply in Germany through European legislation, which is defined by the ReFuelEU Aviation Regulation. It requires fuel for flights originating in the European Union regardless of the destination to have a minimum SAF level of 2% blended in by 2025. The percentage will increase gradually each year to 6% in 2030, 20% by 2035, 42% by 2045 and finally 70% by 2050 and will increase the demand despite the high costs compared to fossil fuel-based kerosene.
In addition to the ReFuelEU Aviation Regulation, the German Federal Emission Control Act stipulates that 0.5 percent of Power-to-Liquids (PtL)-SAF kerosene must be added to the kerosene distributed in Germany in 2026, increasing to one percent in 2028 and two percent in 2030. Based on the amount of kerosene used in Germany in the pre-pandemic year 2019 and an assumed growth rate of one percent per year from 2026, this corresponds to a demand for approximately 50,000 tons of PtL-SAF kerosene in 2026, 100,000 tons in 2028, and 200,000 tons in 2030. It is unlikely that the announced production facilities will be able to meet the demand. There is high risk that less mature SAF technologies such as PtL-SAF will not be commercially available in time.
German Aerospace Industry
The German aerospace industry employs approximately 115,000 people. Notable industry players include Airbus Group, Deutsche Aircraft, Diehl Aviation, Liebherr-Aerospace Lindenberg, MBDA Deutschland, MTU Aero Engines, OHB, and PFW Aerospace GmbH. Airbus operates production facilities throughout the country, including Airbus Aerostructures in Augsburg and Varel, Airbus Helicopters in Donauwörth, Airbus Defence and Space in Manching, and Airbus Commercial Aircraft in Hamburg-Finkenwerder. Established U.S. companies in the German civil and military aerospace market include Boeing, Collins Aerospace/RTX, General Atomics Europe, and Honeywell. On the public side, the German Aerospace Center (DLR) holds a preeminent position as Germany’s national center for aeronautics and space research. DLR conducts extensive research and development work in aeronautics, space, energy, security, and transport, and participates in various national and international collaborative ventures, among them studies on the use of SAF.
Currently, commercial aviation is only allowed to use a maximum blend of 50 percent SAF with kerosene, but several companies such as Airbus and Deutsche Aircraft are already developing aircraft and engines for 100 percent SAF use in Germany. Deutsche Aircraft, in partnership with Pratt & Whitney, is expected to launch its D328eco 100% SAF aircraft in 2027. Airbus has also announced that by 2030, all helicopters and airplanes produced will be capable of flying on up to 100% SAF.
While SAF is a sustainable method of powering engines, Airbus is also developing its first hydrogen-powered commercial aircraft by 2035. In addition, the German government has funded research into a hydrogen-powered regional aircraft by H2Fly and Diehl Aerospace. The two companies are working with the DLR to develop fuel cell technology for electric-powered aircraft.
Sustainable Aviation Fuel
Germany is one of the leading markets for SAF. With a well-developed research network and large refinery capacities for fuel supply, Germany offers a strong infrastructure to shape the further development of SAF.
In connection with Germany’s plans to develop a nationwide hydrogen economy, the German government is planning to focus on hydrogen-based sustainable aviation fuels (PtL-SAF) production and plans to become an international technology leader in PtL-SAF. By 2030, Germany is expected to have production capacity of 550,000 to 1.5 million tons of SAF. Of the 28 planned, projected and operating SAF projects in Germany, 24 are based on synthetic fuels such as PtL-SAF. Despite the effort in synthetic fuel, there is currently no operating synthetic aviation fuel production site in Germany (as of November 2024).
In addition to European and German regulations, there are more ambitious corporate targets than the ReFuelEU regulation, which are expected to increase the demand for SAF. For example, DHL’s corporate goal is to achieve a 30% SAF blend for its air freight business by 2030, and Lufthansa alone expects a demand of 200,000 tons in 2025 to fulfill the 2% blending target.
Opportunities
The entire sustainable aviation market is still evolving and offers investment opportunities for U.S. companies with industry solutions for carbon neutral aviation. Companies can rely on a well-developed infrastructure and engineering industry, as well as one of the largest aviation markets in Europe. Germany remains open for U.S. technology. With the European mandatory blending quotas starting in 2025 and the German goal to support the industry for a climate-neutral transition, the demand for sustainable aviation fuel and sustainable engineering solutions for new aircraft or even individual parts such as engines or designs is expected to increase significantly.
To comply with regulations, the industry needs carbon neutral fuel and engineering solutions despite the higher prices compared to fossil fuel-based technology. Lufthansa, McKinsey, and aireg expect the announced projects for new SAF production facilities not to meet demand. In particular, the supply of the German synthetic fuel sub quota is not guaranteed, and new technical solutions or industrial production capacities will be important to close the gap between supply and demand. With the German hydrogen strategy and regulation, the focus in fuel production is on hydrogen based PtL-SAF. In addition, the German aviation industry is focused on producing the world’s first carbon-neutral powered commercial aircraft.
The German transition to carbon neutral aviation is open to U.S. innovation. The German government supports the transition to a sustainable aviation industry. A key program is the Aviation Development Loan Program (LED), which provides large, conditionally and unconditionally repayable loans. Companies with a permanent establishment or branch office in Germany are eligible.
Relevant Sustainable Aviation Events
• Fuels of the Future – January 20-21, 2025, Berlin
• AERO – April 9-12, 2025, Friedrichshafen
• aireg - SAF Conference – June 23-24, 2025, Berlin
• Aviation Forum – December 10-11, 2025, Hamburg
• ILA Berlin – June 10-14, 2026, Berlin
German Government & Associations Resources
• aireg – Aviation Initiative for Renewable Energy in Germany
• BDLI – German Aerospace Industries Association
ITA Resources
· U.S. Commercial Service in Germany
· Germany Business Service Providers
· U.S. Exporter Resources Toolkit
· Contact Us
Contact:
Moritz von Holst
Commercial Specialist | U.S. Commercial Service
U.S. Consulate General Munich
Königinstr. 5
80539 Munich, Germany
Phone: +49-89-288-8754
E-Mail: moritz.holst@trade.gov