FRANKFURT, June 19 (Reuters) - Producers of sustainable

aviation fuel (SAF) in the European Union cannot increase output

fast enough to meet quotas, the CEO of Frankfurt airport

operator Fraport said, adding the new European

Commission would have to address the issue.

The fuel, made from bio-based materials such as used cooking

oil or wood chips could cut carbon emissions by up to

80%compared with conventional fuel, and is regarded in the

sector as essential to making it more sustainable.

"There is not enough sustainable fuel to meet the quotas,"

Fraport CEO Stefan Schulte said at an event late on Tuesday.

"Production is not ramping up fast enough," he said.

The 27-nation European Union, which will be led by a new set

of European Commissioners and members of the European Parliament

following elections this month, has adopted rules requiring

flights departing from EU airports to carry progressively

increasing amounts of SAF.

The quota will increase to 70% by 2050 and start with 2% of

total fuel in 2025, compared with just 0.2% of global jet fuel

use now.

One of the reasons for the slow uptake is price:

biofuel-based SAF costs between three to five times more than

traditional jet fuel.

SAF producers have complained they lack certainty in terms

of how much fuel to produce and that they could face oversupply

issues in the coming years.

The head of airlines industry group IATA Willie Walsh has

said there is sufficient demand.

"Every drop of SAF that's produced has been used and will be

used," he said last year.