The companies’ joint venture (JV) Concrete Chemicals plans to use the funding for a power-to-liquid synthetic kerosene facility with a planned annual capacity to make over 37,000 tonnes of eSAF and 7,000 tonnes of e-naphtha.

Planned for construction in Schwedt on Germany’s eastern border, it would use biogenic carbon dioxide and green hydrogen as feedstocks.

CO2 would be sourced locally through an agreement with recycled paper and cardboard products maker LEIPA Georg Leinfelder. Hydrogen would be sourced from Germany’s national Hydrogen Core Network, subject to its completion and regulatory approvals.

Concrete Chemicals said the funding has been approved at national and regional levels, with the European Commission review now in its “final phase.”

The JV intends to take final investment decision by 2027, with production hoped to support EU SAF mandates.

Under the EU’s RefuelEU Aviation plan, at least 1.2% of jet fuel supplied at EU airports must be synthetically derived by 2030.

In a statement, Concrete Chemicals said it “directly supports the blending mandates defined in the ReFuelEU Aviation Regulation”.

The EU has also recently pledged over €2.9bn ($3.3bn) through various programmes to decarbonise aviation and shipping in its Sustainable Transport Investment Plan.