Secretary of State for Transport (): Sustainable aviation
fuel (SAF) is an
important part of the strategy to decarbonise air travel. It can
be used in existing aircraft, and it emits on average 70% fewer
greenhouse gas emissions than using fossil jet fuel on a life
cycle basis.
Developing, using and producing SAF will help drive our
missions to kickstart economic growth and make Britain a clean
energy superpower, delivering the government's manifesto
commitment to secure the UK
aviation industry's long-term future, including through promoting
sustainable aviation fuels.
Today (22 July 2024), in addition to the announcement we have
already made in the King's Speech on 17
July that a bill will be introduced to support sustainable
aviation fuel production, we are taking a further important step
in confirming that, subject to Parliamentary approval, we will
introduce a SAFmandate to start from 1
January 2025. We will be one of the first countries in the world
to legislate in this way. We are also today confirming the full
policy detail of the mandate.
Today's announcement is good for aviation, the environment and
for the UKoverall:
sustainable aviation fuel production is estimated to add over
£1.8 billion to the economy and over 10,000 jobs across the
country while supporting decarbonisation. The SAF mandate will drive demand
for SAF in the
UK, deliver emission
reductions up to 2.7 MtCO2e in
2030 and up to 6.3 MtCO2e in
2040 and provide investor confidence that the UK will be a place to produce, use and
supply SAF.
SAF
mandate
The SAF mandate
will start in 2025 at 2% of total UK jet fuel demand, increase on a linear
basis to 10% in 2030 and then to 22% in 2040. From 2040, the
obligation will remain at 22% until there is greater certainty
regarding SAF
supply.
The mandate will encourage the innovation of advanced fuels that
can generate greater emission reductions and the diversification
of feedstocks to reduce dependencies on scarce resources, by
including in the mandate:
-
A cap on the feedstocks used in the hydroprocessed esters and
fatty acids (HEFA)
process, but not until other types of SAF are also commercially
viable to recognise the important part that HEFA
SAF will play
in the 2020s. HEFA
supply will not be limited under the mandate for the first 2
years, fall to 71% in 2030 and still contribute 35% in 2040.
-
A separate obligation on power to liquid fuels from 2028 that
reaches 3.5% of total jet fuel demand in 2040.
The mandate will include a buy-out mechanism for both the main
and power to liquid obligations to incentivise supply while
protecting consumers where suppliers are unable to secure a
supply of SAF.
These will be set at £4.70 and £5.00 per litre of fuel,
respectively. These provide a significant incentive for fuel
suppliers to supply SAF into the market rather
than pay the buy-out. They also set a maximum price for the
scheme, and therefore deliver emission reductions at an
acceptable cost. The plan includes a review mechanism to help
minimise the impact on ticket fares for passengers.
We will also work closely across government on feedstock
availability to ensure that feedstocks are used in a sustainable
and productive way.
SAF
revenue certainty mechanism
The bill announced on 17 July will introduce a revenue certainty
mechanism (RCM)
for SAF producers
who are looking to invest in new plants in the UK. This builds on the SAF mandate, which will create
demand for SAF by
setting targets on fuel suppliers to use a proportion of
SAF. This new
sector will create jobs and growth opportunities in the
UK, help secure a supply of
SAFfor
UK airlines, and enhance
energy security.
There are a number of SAF projects being developed
across the UK. Bringing in a
revenue certainty mechanism will help to reduce risk, giving
investors the confidence they need to invest in UK SAF plants. It will increase
the likelihood SAF
plants will be built in the UK, thereby securing a supply of
SAF for the
UKaviation sector and
supporting the delivery of the SAF mandate.
These 2 SAF
initiatives will drive the government's mission-driven plan to
kick start economic growth and make Britain a clean energy
superpower.
