“For sectors like aviation and shipping, this is the solution for the next few decades.”
Invested by Europe explores the forces shaping the European economy. In each episode, we hear from experts tackling the most pressing challenges—from housing and energy to innovation and infrastructure, security and defence. We look at what’s changing, what the solutions are, and how Europe is investing in its future.
What this episode is about
Gasoline prices are rising, and while drivers can switch to electric cars, other sectors face fewer alternatives. Aviation, shipping and heavy transport still rely on liquid fuels — and electrification is not yet a realistic option for many of these fleets.
In this episode of Invested by Europe, Tiago Lopes, a senior engineer at the European Investment Bank, explains:
- what sustainable liquid fuels are
- why they are critical for aviation and maritime transport
- what is preventing them from being produced at scale in Europe
- what is at stake for Europe’s energy security and strategic autonomy.
The conversation in brief
Sustainable liquid fuels can be used in conventional engines and existing infrastructure, but they are produced in a way that emits less carbon dioxide. For sectors such as aviation, shipping and heavy transport — where electrification is not yet viable — sustainable liquid fuels offer a practical solution for the coming decades.
Producing these fuels at scale in Europe could reduce dependence on imported fossil fuels and help strengthen strategic autonomy. Today, fuel markets are highly sensitive to external shocks, and Europe remains exposed to geopolitical instability in regions where conventional fuels are produced. Price spikes linked to the war in Ukraine or the recent Middle East conflict have increased public awareness of Europe’s reliance on external energy sources.
Despite their potential, sustainable liquid fuels face three main obstacles:
- Cost. They are currently more expensive than conventional fuels, particularly in sectors that consume large volumes, such as aviation and maritime transport
- Technology. This is still a relatively new industry, and production has not yet reached the scale or maturity of fossil fuel markets
- Certainty. Without long-term technological and supply guarantees, it is difficult for large corporate customers to commit to long-term fuel contracts.
This is where public finance can play a role. By supporting larger and cheaper production facilities, and by working with corporate clients, public investment can help crowd in private finance and make sustainable liquid fuels more competitive. The risk of inaction is clear. If Europe moves too slowly, other regions will invest first, leaving Europe dependent on external suppliers. If Europe takes the technological and regulatory lead, it could develop a full supply chain — from raw materials to production and distribution — and retain more economic value within the European economy.
For aviation and shipping, the stakes are high. These industries operate on thin margins, so any increase in fuel costs is quickly passed on to consumers. Europe is a global leader in both sectors, making access to secure and sustainable fuel supplies a critical issue.
Key takeaways
- Sustainable liquid fuels can be used in existing engines and infrastructure.
- They offer a decarbonisation path for aviation, shipping and heavy transport.
- Producing these fuels in Europe would strengthen energy security and autonomy.
About the guest
Tiago Lopes is a senior engineer at the European Investment Bank, where he works on projects that help drive innovation and sustainable growth in aviation, drones and other mobile assets. With experience in engineering and project development, he is passionate about advancing technologies and fostering collaboration to create a positive impact across the industry. Before joining the European Investment Bank, he worked for twenty years across the aviation industry in consultancy, airline and airport management, M&A and financing. He was involved in more than €10 billion of deals in assets and infrastructure across Europe, Latin America, Africa and the Middle East.
Listen and subscribe to Invested by Europe
You can watch or listen to Invested by Europe on:
- The full series on our website
- Apple Podcasts
- Spotify
- Deezer
- — or find us on your favourite podcast platform.
New episodes are released weekly.
Explore more
Podcast : Blade Runner sauve le climat
À l’avenir, on voyagera encore plus par les airs, sans pour autant nuire au climat. Quelles solutions les compagnies aériennes imaginent-elles ?
Un avenir électrisant
Trois ingénieurs italiens mettent au point des fils réduisant les émissions de carbone et améliorant les performances des véhicules électriques.
Faites appel à un véhicule télépiloté
La start-up allemande Vay offre des services innovants d’autopartage, déjà opérationnels à Las Vegas et bientôt en Europe
