New Measures to Support Sustainable Aviation Fuel Industry

Aviation Fuel/Sustainable Aviation Fuel (SAF)Opinions Policy Sustainability UK (United Kingdom)

September 07, 2023

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(U.K. Department for Transport) Government to introduce a revenue certainty scheme to support SAF production in the UK.

the government has committed to introduce a revenue certainty scheme as part of the UK’s world-leading sustainable aviation fuel (SAF) programme, helping create new jobs and grow the economy
as part of the Energy Bill, the government has tabled legislation that will launch a consultation on options for designing and implementing the scheme
this will positively contribute towards government’s ambitious commitment of having at least 5 commercial SAF plants under construction in the UK by 2025 and cement the UK’s status as a world leader in this industry

The Department for Transport (DfT) has today (4 September 2023) committed to introducing a revenue certainty mechanism to support sustainable aviation fuel (SAF) production in the UK and boost its uptake, giving producers greater assurance about earnings from the SAF they produce.

SAF is the most developed pathway for aviation decarbonisation and while the UK’s SAF programme is already one of the most comprehensive in the world, the government recognises the importance of providing long-term certainty for the industry. This scheme, along with the introduction of a SAF mandate in 2025, will provide fuel security, grow the economy and help to create over 10,000 jobs by 2030, rising to 60,000 by 2050.

To do this, DfT will launch a consultation on the design and delivery of the scheme to bolster the development of SAF and drive further investment. The revenue certainty scheme, which is intended to be funded by industry, will give the aviation sector the launchpad to confidently invest in SAF and transition away from fossil fuel reliance.

Aviation and Maritime Minister Baroness Vere said:

Not only will sustainable aviation fuel bring countless economic opportunities, including creating thousands of green jobs, this certainty will allow the industry to harness its full potential, bringing us closer to net zero flying.

This commitment is an important step to create cleaner and greener aviation in the UK and will cement our position as a global leader in innovation, creating a new talented workforce that champions decarbonisation and pave the way for future air travel.

Developing new low or zero emission technology is key to going green and it is important the world of aviation stays ahead of the game.

That’s why the government has already shown its commitment through its £165 million Advanced Fuel Fund, which is already providing investors with reassurance in UK SAF, as well as supporting crucial scientific research and co-investing in innovative aerospace technology through over £600 million funding committed to the Aerospace Technology Institute to support the industry transition to net zero. Considering options for additional revenue certainty will further support the development and production of SAF and bring the UK a step closer to achieving Jet Zero.

A delivery plan for how this mechanism can be delivered by the end of 2026 has also been published, building on the work by the Jet Zero Council to consider the best way to support the aviation industry to decarbonise.

Gaynor Hartnell, Chief Executive of the Renewable Transport Fuel Association, said:

SAF project developers welcome this commitment and look forward to working with DfT to ensure the government’s ambition of getting commercial projection plants into construction becomes a reality.

Chair of the Jet Zero Council SAF Delivery Group, Jonathon Counsell, said:

SAF will play the most important role in meeting our net zero targets and especially in reducing aviation emissions this decade. So we welcome the commitment to a revenue certainty scheme.

Industry is ready to take part in the consultation process to determine the right mechanism to secure the investment needed to create a UK SAF industry. The Jet Zero SAF Delivery Group will work with government to move forward quickly with the consultation.

We will work with the government to be able to implement measures at the earliest opportunity so that we can hit the target of 5 UK SAF plants in construction by 2025.

Grant Pearson, Chair of the JZC sub-group on SAF commercialisation, said:

This will help maintain the momentum needed to capitalise on DfT’s support for SAF to date. It will help reassure project developers that the UK is serious in its bold ambition to spearhead an innovative and highly sustainable domestic aviation fuel industry.

The Jet Zero Council process has brought together the stakeholders that will start the transition of aviation into a more sustainable future. They have been consistent in calling for government to complement its SAF mandate with a means to facilitate SAF project financing. READ MORE

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Excerpt from LetsRecycle.com: In partnership with British Airways, Velocys is developing its ‘Altato’ facility in Immingham, North East Lincolnshire, that could convert up to 500,000 tonnes of municipal solid waste into fuel for planes and cars each year (see letsrecycle.com story).

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Velocys share price has risen by 6% today after the news.

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There are many SAF projects planned in the UK.

This includes the Fulcrum Bioenergy facility in Cheshire, planned to produce 100 million litres of SAF annually from 600,000 metric tonnes of waste. And, LanzaTech’s planned facility in South Wales is set to produce SAF using ethanol feedstock made from steel mill waste gases and other wastes.

Other proposed projects are Phillips 66, which has plans for SAF production from used cooking oil, delivering its supply via existing infrastructure feeding directly into the UK airports. Additionally, Alfanar has committed to a £1 billion Teesside facility that is set to produce 120 million litres of SAF from waste each year. READ MORE