- 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.
