As a response to interest in establishing an e-SAF market intermediary via double-sided auctions, Project SkyPower and H2Global co-authored an FAQ document to unpack the benefits and potential practicalities of the mechanism.
Project SkyPower and H2Global have jointly developed responses to Frequently Asked Questions about establishing a market intermediary to conduct double-sided auctions for e-SAF support. Building on the successful model demonstrated by H2 Global, and on previous SkyPower work underscoring the value of market intermediaries and the critical role of public funding in launching early auctions to create investor confidence and accelerate market formation, the FAQ seeks to illustrate and clarify how such an auction might work to unlock the e-SAF market, and what governments stand to gain by investing in this model.
Governments, industry, and financiers are increasingly aligning around the need for a market intermediary as a practical and effective tool to scale production and deployment. With commitment now coalescing around this concept, attention is turning to the technical and legal design questions that will shape how such an intermediary operates in practice.
The intermediary would contract both buyers and producers through competitive auctions, supporting transparent price discovery and efficient use of public funds. This mechanism helps bridge the gap between early-stage e-SAF production and full commercial deployment, reinforcing Europe’s climate and industrial goals.
The responses provided are intentionally high-level and will evolve through continued dialogue with funders, regulators, and industry. Auction design elements remain open and will depend on negotiations and compliance with EU competition law. Further consultation with stakeholders is recommended before launching any tender to ensure local conditions and priorities are well reflected.