Europe Courts Latin America to Supply Its Sustainable Aviation Fuel

Energy

Europe needs vast amounts of sustainable aviation fuel it cannot make at home, and it is looking across the Atlantic to a region rich in sunshine, sugarcane and clean power to help supply it.

The European Union has begun treating Latin America as a strategic partner in one of its hardest climate problems: cleaning up aviation. The tool is sustainable aviation fuel, a low-carbon substitute for ordinary jet kerosene.

The logic is simple on paper. Europe has tough fuel mandates but little domestic capacity, while Latin America has the biomass, sun, wind and water to make the fuel in volume.

For a reader in London or Munich, this is a trade-and-energy story as much as a green one. It is about where Europe’s airlines will buy their fuel, and whether a new export industry takes root in the Americas.

Why Europe wants Latin American sustainable aviation fuel

Europe’s interest is not only about the climate. It is also about security of supply in a world where energy has become a geopolitical weapon.

The dependence is striking. Around 30% of Europe’s aviation-fuel imports come directly from the Middle East, a share that climbs toward 40% once refined products are counted.

Latin America offers an appealing alternative. One regional energy official described it as a rare mix of abundant resources, room to grow production, and relative stability next to other supplier regions.

Brussels is backing the interest with money. Its Global Gateway programme aims to mobilise more than €45 billion, around US$52 billion, in Latin America and the Caribbean by 2027 for energy, infrastructure and critical raw materials.

Brazil leads, but it is not alone

Brazil is the obvious anchor. At its industry meeting in Rio de Janeiro this June, the global airline body singled the country out as a potential powerhouse for sustainable aviation fuel.

The numbers explain why. By the airline group’s estimate, Brazil could produce around 12 million tonnes of the fuel a year by 2030, rising toward 60 million tonnes by 2050, drawing on its sugarcane ethanol, waste oils and clean electricity.

Others want a share of the chain. Colombia could lean on its palm-oil industry to supply some of the vegetable oils used in certain production methods, while Chile, Paraguay and others are positioning themselves too.

There is a second prize beyond the fuel itself. The region could also produce the renewable hydrogen needed for synthetic fuels, potentially at costs below US$1.50 per kilogram, according to regional energy analysts.

The obstacles are large

The gap between promise and reality is wide. The airline body estimates global output of the fuel at just 2.4 million tonnes in 2026, only 0.8% of what airlines burn.

To hit net zero by 2050, the world may need roughly 500 million tonnes a year. Current production is a rounding error against that target, and growth has been disappointing.

Cost is the central barrier. Fuel made by the main current method can cost up to twice as much as ordinary kerosene, while the cleanest synthetic version can run seven to ten times higher.

European airlines feel the squeeze. Some have warned that consumption mandates leave them at a disadvantage to rivals based where the rules are looser, and one budget carrier has called for the obligations to be delayed until supply catches up.

Supplier or industrial partner?

The deeper question for the region is what kind of role it plays. The EU says it wants to build whole value chains in Latin America, not simply import raw feedstock.

That distinction matters enormously. Exporting unprocessed biomass or hydrogen would leave the region as a low-value supplier, while refining, certification and technology would keep more of the wealth and the jobs at home.

Getting there is hard. Projects need power grids, conversion plants, storage terminals, ports and certification systems, and they must meet strict European rules on how the energy was produced and traced.

Water is a further constraint. Large hydrogen projects are thirsty, a serious issue in the drier corners of a region that also faces recurring droughts.

What it means for investors

For investors, this is an early-stage opportunity with real backing but real risk. The demand is mandated, the European money is committed, and the resource base is genuine.

Yet the economics are not there yet. Until the price gap with conventional fuel narrows, the industry depends on policy support, subsidies and long-term contracts rather than standalone returns.

The signal worth watching is whether contracts and infrastructure actually follow the feasibility studies. Europe has funded research across the region for years without yet building a large supply chain.

The wider lesson is that the energy transition is redrawing trade maps. If Latin America can turn its natural advantages into refined, certified exports, it stands to gain an industry; if not, it risks being a feedstock supplier once again.

More: Brazil news in English, every day from The Rio Times.

Frequently Asked Questions

What is sustainable aviation fuel?

It is a low-carbon substitute for jet kerosene, made from materials such as waste oils, biomass or renewable hydrogen and captured carbon. It can be blended into existing aircraft and engines without modification, which is why airlines see it as their main near-term path to lower emissions.

Why does Europe want it from Latin America?

Europe has strict fuel mandates but limited domestic capacity, and it relies heavily on Middle Eastern jet-fuel imports. Latin America’s biomass, sunshine and clean power make it an attractive, more stable alternative supplier, which is why the EU is backing it with Global Gateway funding.

What is holding the industry back?

Mainly cost and scale. The fuel can cost two to ten times as much as conventional kerosene, and global output meets under 1% of demand, so the sector still leans on mandates, subsidies and long-term contracts rather than standalone profitability.

This article was drafted with automated assistance and reviewed before publication. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief