by Gwyn Topham (The Guardian) Provisional figures in government mandate’s first year show 20% shortfall in levels of SAF supplied for UK flights -- Production data published by the Department for Transport (DfT) covering most of 2025 shows that sustainable fuels (SAF) only accounted for 1.6% of fuel supplied for UK flights – 20% less fuel in volume than the 2% needed to fulfil the requirement.
The government introduced the mandate in January, which requires suppliers to hit targets for SAF – which the industry has argued is important for cutting its carbon emissions – within the overall UK aviation fuel mix.
The mandatory target rises sharply from 2% in 2025 to 10% in 2030 and then to 22% in 2040, including the use of second-generation fuels that are seen as more sustainable in the long term.
So far, the supply of SAF has been exclusively produced from recycled cooking oil from Asia, predominantly China, the DfT figures showed.
The data shows that a little more than 160m litres (35m gallons) of SAF was used, out of 10bn litres of jet fuel burned in UK flying until early October.
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Although many scientists and environmental groups remain deeply sceptical that it can be delivered, production and uptake of SAF is seen as the only way for commercial, and particularly long-haul, aviation to reduce its emissions.
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He (aviation minister, Keir Mather) said that SAF represented the biggest opportunity, and the government’s SAF bill, which is passing through the House of Lords, “will deliver the revenue-certainty mechanism that you called for – a guaranteed price for SAF that reduces risks for investors and raises confidence for producers”. READ MORE
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Excerpt from ResourceWise: The UK government’s recent call for evidence on crop-derived sustainable aviation fuel (SAF) signals a notable shift in policy. For years, official guidance was clear that only waste-based fuels would qualify for support under the SAF mandate. This position helped the UK distance itself from one of biofuels’ most persistent controversies in the food-versus-fuel debate.
That clarity is now fading. With the Department for Transport acknowledging that waste alone may not be sufficient to meet the UK’s 10% SAF target by 2030, crop-based fuels are back on the table.
On the surface, this looks like a pragmatic move to diversify supply and strengthen energy security. In reality, it reflects a more reactive effort to stabilize a domestic ethanol industry that recent trade decisions have left exposed.
From Waste-Only Ambition to Crop Reality
The UK’s ethanol sector has largely been centered around the Vivergo and Ensus plants. However, these plants have been under severe pressure recently.
A policy decision to allow up to 1.4 billion liters per year of tariff-free US ethanol into the UK market dramatically altered the competitive landscape. Less expensive, subsidised US corn ethanol flooded the market and undercut domestic producers that were already operating on thin margins.
The consequences were swift and severe. UK bio-refineries struggled to compete, and Vivergo has already announced its closure.
Against this backdrop, the government’s openness to crop-derived SAF looks less like a strategic pivot and more like a rescue attempt.
By allowing crops into the SAF mandate, policymakers are effectively creating a new outlet for domestic ethanol via the alcohol-to-jet (ATJ) pathway. The move could offer UK producers a lifeline beyond gasoline blending, a market now dominated by imports.
A Mandate Growing More Complex by the Month
The mechanics of the shift are understandable. If domestic ethanol can be upgraded into jet fuel, it creates a new demand pull from aviation. This offers a highly desirable pathway as aviation remains a sector with far greater long-term growth potential than road fuels.
However, the policy architecture underpinning this transition is becoming increasingly convoluted. The call for evidence suggests a cap on crop-based SAF to limit food-versus-fuel risks.
While caps are not inherently problematic, the UK SAF mandate is already heavily fragmented:
For a mandate that is less than a year old, this level of complexity risks creating uncertainty for investors and project developers alike.
The Carbon Debate Returns
The government has continued to stress that any crop-based SAF must still meet greenhouse gas (GHG) reduction thresholds. In theory, converting UK feed wheat into ethanol and then into SAF via ATJ could lower aviation’s overall carbon intensity.
In practice, this is a familiar battleground.
In the US, crop-based ethanol has long faced criticism over whether it delivers meaningful carbon savings compared to fossil fuels. That same debate now looks set to re-emerge in the UK, as stakeholders scrutinize the environmental credentials of crop-derived SAF.
Lower Costs, Higher Adoption
What is far harder to dispute is the cost impact of introducing crop-based SAF.
Alcohol-to-jet is widely seen as one of the most promising pathways for lower-cost SAF production. But its economics are heavily influenced by feedstock prices. Restricting ATJ to waste-based ethanol has undermined its competitiveness because waste ethanol is both higher-value and limited in supply.
Opening the pathway to crop-based ethanol changes that equation dramatically.
ATJ SAF prices can vary widely depending on feedstock and geography. Subsidized US corn ethanol sits at the lower end of the cost curve, enabling SAF prices below $1,500 per ton. By contrast, waste-based, cellulosic ethanol can push SAF prices above $2,500 per ton.
Introducing crop-based ethanol into the mix gives ATJ a clear role as a cost-competitive option for meeting SAF mandates. This could significantly reduce the overall cost burden on airlines.
A Policy Irony Hard to Ignore
There is an undeniable irony at the heart of the UK’s evolving SAF policy. After years spent trying to move away from crop-based biofuels, the government now finds itself embracing them to protect industrial and agricultural jobs in the north of England.
While the official narrative frames this as a necessary broadening of the fuel mix, the underlying driver is clear. The UK must stabilize a domestic industry that previous policy decisions helped to destabilize.
The waste-only vision may have been politically convenient. But the realities of supply, cost, and industrial resilience have forced a rethink. Crop-based SAF is back, and it’s not because it was the preferred option. Instead, it’s because it may now be the only viable option for the UK moving forward. READ MORE
(Office of U.S. Representative Sharice Davids (D-KS-03)) U.S. Representative Sharice Davids (D-KS-03) — alongside Representatives Mike Flood (R-NE-01), Troy Carter (D-LA-02), and Tracey Mann (R-KS-01) — introduced the Securing America’s Fuels (SAF) Act, bipartisan legislation designed to strengthen the sustainable aviation fuel (SAF) industry, create economic opportunities for farmers, and reduce emissions in the transportation sector.
“Investing in sustainable aviation fuel isn’t just good for the environment — it’s good for Kansas farmers, our communities, and our economy,” said Davids. “The SAF Act ensures that clean fuel production incentives are strong and long-term so businesses, farmers, and innovators can plan for the future with confidence. The bipartisan support shows the incredible potential we have to build a healthier, stronger, and more prosperous future for generations to come.”
“America is on the cusp of the next great biofuels revolution,” said Representative Mike Flood (R-NE-01). “The Securing America’s Fuels Act is yet another way Congress can grow our bio economy and encourage innovation that creates great jobs across rural America. Sustainable aviation fuel will help lower emissions while expanding domestic markets for our nation’s farmers, ensuring that our ag economy thrives for generations to come. I want to thank Congresswoman Davids for introducing this much-needed bill and look forward to working together to advance this commonsense, bipartisan bill through Congress.”
The sustainable aviation fuel (SAF) industry currently relies on the 45Z Clean Fuel Production Tax Credit to make production economically viable. While recent legislation extended the credit for all clean fuels, it eliminated the SAF-specific bonus. To address this challenge, the SAF Act would:
- Reinstate the SAF bonus credit eliminated under the recent federal budget, allowing qualifying SAF producers to receive up to $0.35 or $1.75 per gallon.
- Extend the 45Z Clean Fuel Production Tax Credit for all clean fuels through 2033, providing long-term stability for the growing clean fuels industry.
SAF is a game-changer for local communities, agriculture, and the transportation industry. Scaling SAF to meet U.S. goals could generate 33,000 construction jobs over five years, sustain 4,500 permanent operations jobs, and support 60,000 jobs in agriculture and logistics by 2030. SAF can also reduce lifecycle greenhouse gas emissions by up to 80 percent, delivering major environmental benefits while using existing aviation infrastructure.
"Without coordinated action between government and industry, greenhouse gas emissions will continue to increase as more people and goods fly through our skies,” said Representative Troy Carter (D-LA-02). “Sustainable aviation fuel is an exciting, new green fuel that’s creating jobs in Louisiana and driving demand for American agricultural products. I’m proud to introduce this bipartisan legislation to ensure America is on track to meet the growing demand for cleaner transportation and healthier communities.”
“Sustainable aviation fuel is a worthwhile investment for American agriculture and for American energy dominance,” said Representative Tracey Mann (R-KS-01). “The Securing America’s Fuels Act gives Kansas farmers the certainty they need to plan, invest, and keep supplying fuel to the country and our aviation sector. I will always support legislation that supports rural communities and helps the United States continue to lead the world in producing the fuels of tomorrow.”
Davids co-chairs the Congressional Sustainable Aviation Caucus (CSAC), which works to reduce the aviation industry’s environmental impact and maximize its financial sustainability. By leveraging federal policy, holding forums, and bringing together public and private partners, the caucus plays a key role in the integration of new technologies into the nation’s aviation network.
The bipartisan legislation is endorsed by major industry and agricultural groups, including National Corn Growers Association, SAF Coalition, Airlines for America, Kansas Farm Bureau, Renew Kansas, Kansas Corn, Kansas Soybean Association, Greater New Orleans Inc., Nebraska Corn Growers Association, Nebraska Soybean Association, Nebraska Farm Bureau, Twelve, Darling Ingredients, Louisiana Farm Bureau Foundation, Advanced Biofuels Association, Global Business Travel Association, and American Sugarcane League.
“The SAF Coalition applauds Reps. Sharice Davids and Mike Flood for their leadership in introducing The Securing America’s Fuels Act,” said Alison Graab, Executive Director, Sustainable Aviation Fuel (SAF) Coalition. “This legislation continues the broad, bipartisan support for SAF in Congress and recognizes SAF’s unique ability to fuel America’s energy dominance while supporting American farmers. The SAF Coalition urges Congress to pass this legislation so we can grow America’s rural economies, create new markets for our farmers and secure a stronger energy future for our nation.”
“Agriculture and aviation are crucial to Kansas’ economy and Kansas Farm Bureau appreciates Rep. Sharice Davids’ leadership in introducing the Securing America’s Fuels Act alongside Rep. Tracey Mann. Incentivizing the use of domestic crops to produce sustainable fuels creates a new market for Kansas farmers while lowering the carbon emissions of the aviation industry,” said Joe Newland, President, Kansas Farm Bureau.
"The development of Sustainable Aviation Fuel (SAF) holds great promise for Nebraska biofuels producers as well as Nebraska's farmers and ranchers,” said Mark McHargue, President, Nebraska Farm Bureau Federation. “We appreciate the leadership of Nebraska Congressman Mike Flood in offering this legislation that provides incentives that will help get this emerging industry off the ground. Nebraska Farm Bureau stands ready to work to get this legislation approved and help Nebraska become the SAF epicenter of the country."
“It is crucial that Congress finds ways to support farmers with good domestic policy, at this time when international trade negotiations have left farmers in difficult market conditions,” said Richard Fotenot, President, Louisiana Farm Bureau. “Congressional policy changes can also provide relief to American consumers. The SAF Act does both. It creates consistency in domestic aviation fuel markets in a sustainable manner important to consumers. We are grateful to Congressman Carter and his colleagues for continuing to find ways to support these efforts through ideas like the SAF Act.”
“SAF may offer a great opportunity for sugarcane farmers,” said Jack Pettus, VP of Government Relations, American Sugar Cane League. “Our mills use bagasse, the fibrous byproduct of recovering sugar from the sugarcane plant, to power their operations during harvest season. Our farmers have been growing and delivering this renewable fuel for over a century and we are anxious to find new uses for the excess biofuel (bagasse) that we currently produce. The American Sugar Cane League appreciates this bipartisan effort to identify and encourage demand for domestic renewable energy feedstocks in markets like aviation fuels.”
“The Advanced Biofuels Association strongly supports this bipartisan effort to strengthen sustainable aviation fuel (SAF) producers and improve the overall availability of renewable fuels for America’s airline industry,” said Michael McAdams, President, Advanced Biofuels Association. “This type of legislation is essential in the United States’ effort to achieve its energy dominance policy agenda.”
“Delta applauds Reps. Flood, Davids, Mann, and Carter for their leadership in introducing the Securing America's Fuels Act, which will ensure 45Z reaches its full potential and provides the critical investment certainty necessary to bring additional SAF production facilities online to meet our industry's unprecedented demand for cost-competitive, homegrown fuels," said Cherie Wilson, Vice President, Government Affairs - Sustainability, Delta Air Lines.
“U.S. airlines are grateful to Representatives Flood, Davids, Carter, and Mann for introducing legislation that would restore and extend the full 45Z tax credit,” said Airlines for America. “This will stimulate private sector investment in SAF while also bolstering American energy dominance. This credit is a win-win for both the aviation and agriculture industries, supporting U.S. job growth across the country.”
“The Clean Fuel Production Credit is an extremely valuable economic support policy for the rural economy, and we are pleased to see Kansas taking the lead in extending and expanding it,” said Kaleb Little, Kansas Soybean Association CEO. “We thank Representative Davids and Representative Mann for co-sponsoring this bi-partisan legislation. Biomass-based diesel production supports approximately 10 percent of the value of every bushel of soybeans grown in the United States, or an additional $149 million for Kansas farmers in 2024. Farmers and fuel producers have made tremendous investments to build a biodiesel, renewable diesel and sustainable aviation fuel industry that can help meet America’s energy needs.” READ MORE
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Excerpt from Global Business Travel Association: GBTA applauds today’s introduction of the “Securing America’s Fuels (SAF) Act” in the U.S. House of Representatives which would restore the full value of the credit for Sustainable Aviation Fuel and extends related 45Z tax credits through 2033.
GBTA, as well as the SAF Coalition, sent letters to key U.S. policymakers urging swift, bipartisan passage of the bill which will improve economic growth, provide business certainty for SAF producers and airlines, and lower costs for consumers and businesses travelers over time.
In brief, the 45Z Clean Fuel Production Tax Credit currently allows SAF bonus credits of up to $1.75 per gallon if prevailing standards are met. However, in July 2025 the SAF bonus credit was eliminated beginning in 2026, reducing the maximum incentive and undermining the economics of new SAF projects.
“Reliable, affordable, and sustainable air travel is essential to our members’ operations, and the future growth of the U.S. economy. GBTA strongly supports the passage of the SAF Act and encourages the House to include complementary measures that streamline SAF certification, improve supply chain logistics, advance research and demonstration programs that lower costs, and accelerate deployment at airports nationwide,” said GBTA CEO Suzanne Neufang.
Read the full GBTA letter here. READ MORE
Excerpt from National Business Aviation Association: “NBAA thanks Reps. Flood and Davids for introducing this measure and understanding SAF’s economic and sustainability benefits,” said NBAA President and CEO Ed Bolen. “Restoring the full credit provides the clarity and stability needed to unlock investment, expand supply and accelerate progress toward our industry’s long-term environmental commitments.”
SAF is a drop-in jet fuel produced from bio-based feedstocks and can reduce lifecycle greenhouse gas emissions by up to 80% over legacy fuels. The fuel is central to business aviation’s commitment to achieve net-zero carbon emissions by 2050. READ MORE
Excerpt from Ethanol Producer Magazine: The original 45Z tax credit, as established by the Inflation Reduction Act of 2022, provided a tax credit for the production and sale of low-emission transformation fuels. The credit started at 20 cents per gallon for non-aviation fuels and 35 cents per gallon for sustainable aviation fuel (SAF). For facilities that satisfy the prevailing wage and apprenticeship requirements, the value of the tax credit was up to $1 per gallon for non-aviation fuels and $1.75 per gallon for SAF. Under the IRA, the 45Z credit was available for 2025, 2026 and 2027.
President Trump on July 4 signed the One Big Beautiful Bill Act, a budget reconciliation package that extended the 45Z credit through the end of 2029, altered the credit by limiting eligibility to fuels derived from feedstocks produced or grown in the U.S., Canada or Mexico, and eliminated the “special rate” for SAF. The elimination of the “special rate” effectively caps the value of the SAF credit at $1 per gallon starting in 2026.
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The SAF Act is not the only legislation introduced in recent months to reinstate 45Z's special rate for SAF. In October, Rep. Mike Thompson, D-Calif., introduced a bill that aims to reinstate many of the renewable energy tax credits eliminated by the OBBBA. One provision of that bill aims to reinstate the 45Z credit premium for SAF. READ MORE