Aviation: CO2 and water become synthetic kerosene (cross-border guide)

Context

In a nutshell

• PSI Aargau inaugurates demonstration plant for sustainable synthetic kerosene
• Produces 50 litres per day; research lasts 3 years
• Tethered airlines: 2% sustainable kerosene today, 6% in 2030

Key facts

• What: Demonstration plant transforms water, electricity and CO2 into synthetic kerosene
• Where: Paul Scherrer Institut (PSI), canton Aargau, Switzerland
• When: Inauguration just took place (August 2026)
• Who: Paul Scherrer Institut, Federal Office of Civil Aviation
• Production: 50 litres per day
• Cost: Sustainable kerosene costs 4-5 times more than conventional

At the Paul Scherrer Institut (PSI) in Aargau, the first demonstration plant capable of producing "high quality and zero climate impact" synthetic kerosene was inaugurated. The project represents the culmination of three years of research. The plant transforms three essential ingredients — water, electricity from sustainable sources and carbon dioxide extracted directly from the atmosphere — into ready-to-use aviation fuel, paving the way for cleaner aviation.

Marco Ranocchiari, head of the technological energies and innovation laboratory AT PSI, comments on the achievement with satisfaction: "For me personally it represents a research success, because we have transformed something that was prepared in the laboratory into something bigger and that will surely have an impact on society."

From the laboratory bench to the plant

Operational details

The economic challenge: still high prices

While Swiss research achieves a technically brilliant result, the road to large-scale industrial production presents significant obstacles. The main one is no longer technological, but economic. Synthetic kerosene costs four to five times more than conventional fuel. Jens Fehlinger, CEO of Swiss, makes no secret of the frustration: “Prices for sustainable kerosene are four to five times higher than conventional — that's where we need to work. Our planes are ready, from tomorrow we could load as much green kerosene as possible, but you can't find any. It is essential that we now increase production, to also lower the prices that our passengers ultimately pay. "

This claim reveals a market paradox: airlines have already equipped their aircraft to use sustainable fuel; manufacturing plants are starting to become real; and yet the global shortage of supply keeps prices high, creating an economic bottleneck that slows the transition. For Swiss passengers and families who fly frequently, this translates into a real risk of fare increases in the coming years, at least until economies of scale reduce unit costs.

From Swiss research to production in the Netherlands

For reasons of space and logistics, the first commercial plant

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Key points

Time Scenario: From Research to Commercial Scalability

The transition will not happen overnight. Source data shows a clearly defined trajectory:

Phase 1 (2026-2029): The increase in research and testing capacity in Switzerland at the PSI continues; the commercial plant in the Netherlands is under construction. Mandatory percentages remain at 2% globally.

Phase 2 (2030 onwards): The Dutch plant becomes operational and supplies synthetic fuel; the mandatory quota rises from 2% to 6%. Economies of scale on production begin, gradually leading to a reduction in unit prices.

Phase 3 (2050): Climate neutrality target for the global aviation sector. A time horizon that is still far away, but thanks to the progress of Swiss research, today it appears less inaccessible than in the past.

This timeframe means that Swiss passengers will likely have to deal with slightly higher airfares in the medium term, reflecting the additional cost of mandatory sustainable fuel. On the other hand, each increase in production and each economy of scale should lead to a gradual reduction in the price premium in the decade 2030-2040.

Electric aviation: a promise that is still premature

Meanwhile, the industry is also exploring alternative paths, albeit still far from large-scale commercial application. Friday in Bern, in the

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Source: rsi.ch