Green Power Denmark: Proposal for green aviation fuel solves market gap

The business organization Green Power Denmark has welcomed a proposal from the Conservative Party to have the state purchase $2 billion worth of green aviation fuel each year. This initiative aims to address a critical market gap in the burgeoning sustainable aviation fuel sector.

Kristian Jensen, CEO of Green Power Denmark, explained that the proposal directly tackles the challenges faced by both producers and consumers. "We know that energy companies are ready to produce but need security for sales. And we know that airlines want to use green fuel but cannot commit to long contracts," Jensen stated in a written comment to Ritzau. "The Conservative Party's proposal solves precisely that problem by having the state act as an intermediary for production and consumption."

“

We know that energy companies are ready to produce but need security for sales. And we know that airlines want to use green fuel but cannot commit to long contracts.

The Conservative Party's plan, as outlined in Politiken, involves reselling the green fuel to airlines operating from Danish airports. Anders Storgaard, the party's spokesperson for energy, supply, and climate, elaborated on the market mechanism. "Right now, there are some large Danish companies saying: 'We are ready to produce the green aviation fuels, but we need someone to dare to commit to buying large quantities over a ten-year period.' Airlines are unwilling, and this is where we now propose: Let the state solve the gap in the market," he told the media.

The proposal suggests financing this state-backed purchase through revenues generated by the passenger tax on flights, which was introduced in 2025 and is set to increase gradually until 2030. This approach seeks to create a stable demand for green aviation fuel, thereby encouraging investment and scaling up production necessary for decarbonizing air travel.

“

Right now, there are some large Danish companies saying: 'We are ready to produce the green aviation fuels, but we need someone to dare to commit to buying large quantities over a ten-year period.' Airlines are unwilling, and this is where we now propose: Let the state solve the gap in the market.