The European regulatory framework for Sustainable Aviation Fuels (SAF)—built around ReFuelEU Aviation, RED III, and the EU Emissions Trading System (EU ETS), as discussed in our article on the REFOLUTION project—sets legally binding blending targets through to 2050. Behind these regulatory milestones, however, lies an equally important question: where will the feedstocks needed to produce the required volumes of SAF actually come from?
This is where microalgae come into play. Recognised by EU legislation as a third-generation biofuel feedstock, microalgae are explicitly supported within the European regulatory framework and form the basis of the COCPIT project, which aims to demonstrate a circular value chain for producing sustainable aviation and marine fuels from algal biomass.
Microalgae in Annex IX of RED III
The key regulatory reference for projects such as COCPIT is Annex IX, Part A of Directive (EU) 2023/2413 (RED III), which lists the feedstocks eligible for the production of advanced biofuels. Cultivated microalgae grown in ponds or photobioreactors are explicitly included alongside straw, forestry residues, and other waste biomass.
This classification provides two significant advantages. First, fuels produced from these feedstocks benefit from the double-counting mechanism towards the Renewable Energy Directive transport targets, including the combined 5.5% sub-target for advanced biofuels and Renewable Fuels of Non-Biological Origin (RFNBOs) by 2030, making them more attractive to both fuel suppliers and investors.
Second, Annex IX is not a static list. Commission Delegated Regulation (EU) 2024/1405 has already expanded the Annex by adding new eligible feedstocks, demonstrating that the European Commission can further extend the list as technologies evolve. This represents a potentially important opportunity for innovative algal strains and novel production pathways.
As with all SAF eligible under ReFuelEU Aviation, algae-based fuels must also comply with the general sustainability requirements established by EU legislation. These include achieving life-cycle greenhouse gas emissions savings of between 65% and 100% compared with conventional fossil kerosene, as well as obtaining certification under one of the voluntary sustainability schemes recognised by the European Commission—such as ISCC EU, RSB, or equivalent schemes—in accordance with Article 30 of RED III.
The “paradox” of third-generation biofuels
Despite this favourable regulatory framework, the large-scale production of microalgae-based fuels continues to face significant technical and economic challenges.
According to estimates published by the European Union Aviation Safety Agency (EASA), global SAF production accounted for only 0.53% of worldwide jet fuel consumption in 2024. Furthermore, approximately 98–100% of the SAF currently available in Europe is produced from second-generation feedstocks such as used cooking oil and animal fats, while fuels derived from third-generation feedstocks—including microalgae—remain at a very early stage of market deployment.
A report published by Transport & Environment in July 2024 notes that, despite years of research and policy support, algae-based fuels still face considerable barriers in scaling up from laboratory research to industrial production. Similarly, the International Council on Clean Transportation (ICCT) estimated in 2020 that synthetic aviation fuels could cost around ten times more than conventional fossil kerosene, although this cost gap is expected to narrow progressively to approximately 2.5 times by 2050.
COCPIT: a circular value chain from algal cultivation to certified fuels
The COCPIT process begins with the cultivation of microalgae in photobioreactors (PBRs) enclosed within a semi-transparent photovoltaic (STPV) shell, enabling the simultaneous production of biomass and solar energy. The biomass is then converted into fuel through two complementary pathways: HEFA (Hydroprocessed Esters and Fatty Acids) and HTL (Hydrothermal Liquefaction), both designed to produce aviation and marine fuels that comply with ASTM standards.
Among the project’s key innovations are ionic liquid-based lipid extraction methods, ionic liquid catalysts that make the HEFA process more cost-effective, and the production of renewable aromatic compounds to improve SAF properties, enabling higher blending ratios while maintaining compliance with fuel specifications.
Circularity is a core principle of the project. Carbon dioxide and nutrients are continuously recycled within the process, while dark fermentation valorises organic by-products by recovering hydrogen for the upgrading stage and returning nitrogen and phosphorus to the photobioreactors. In addition, a dedicated decision-support tool—based on Techno-Economic Analysis (TEA), Life Cycle Assessment (LCA), and Social Life Cycle Assessment (s-LCA)—will be made available to investors through a dedicated marketplace, helping them identify the technology pathway best suited to their specific context.
According to consortium estimates, microalgae could ultimately supply between 21% and 36% of the European Union’s Sustainable Aviation Fuel demand, highlighting their long-term strategic potential.
Latest developments: highlights from eubce 2026
At the 34th European Biomass Conference and Exhibition (EUBCE), held in The Hague in May 2026, consortium partners presented a series of results demonstrating the project’s growing technological maturity.
IMT Atlantique showed that optimising the biomass composition of the Parachlorella kessleri strain—by reducing protein content while increasing lipid accumulation—significantly improves biocrude yields and lowers nitrogen concentrations.
Researchers from Aalborg University presented the results of a continuous two-stage hydrotreatment process applied to algal biocrude, capable of removing oxygen and nitrogen while producing fuel fractions that comply with ASTM D7566 for aviation fuels and ISO 8217 for marine fuels.
From an economic perspective, the Agricultural University of Athens presented a techno-economic assessment confirming the advantages of the HTL pathway, particularly its ability to process wet biomass directly, while also identifying cultivation and scale-up as the main cost drivers requiring further optimisation.
Finally, HELLENiQ ENERGY provided an industrial perspective on integrating microalgae-based SAF production pathways into existing refinery infrastructures. The company highlighted the importance of balancing technological innovation with operational continuity, plant safety, and full compliance with international fuel standards. It also explored the potential for replicating the COCPIT concept across the Mediterranean region, where the project could offer one of the most readily deployable solutions for refineries and commercial fleets striving to meet both IMO and European decarbonisation targets.
Conclusion
While the European regulatory framework for Sustainable Aviation Fuels clearly defines how much SAF must be deployed and by when, the question of which feedstocks will supply the volumes required to meet these targets remains open.
Microalgae, explicitly recognised under Annex IX of RED III, represent a feedstock that is still at an early stage of commercial deployment but offers significant regulatory and industrial potential. At the same time, the technical and economic challenges identified by EASA, the International Council on Clean Transportation (ICCT), and Transport & Environment highlight the work that remains before this potential can be realised.
This is precisely where COCPIT contributes. By developing a fully integrated circular value chain—from microalgae cultivation to the production and ASTM certification of sustainable aviation fuels—the project seeks to bridge the gap between the theoretical potential of microalgae, estimated by the consortium to meet up to 36% of Europe’s future SAF demand, and their successful deployment at industrial scale.