A leading aviation body has called for swift government action to ensure “tens of thousands of jobs and huge export potential from a homegrown SAF [sustainable aviation fuel] industry”.
The call from Tim Alderslade, chief executive of Airlines UK, came after the government published a new transport decarbonisation package to help boost its net zero ambitions.
The second application round of the £165 million Advanced Fuels Fund has been opened, which will help start construction on at least five commercial-scale SAF plants in the UK by 2025.
Aviation minister Baroness Vere of Norbiton said: “Developing a UK SAF industry will not only put the country at the heart of green aviation worldwide, but also boost investment, jobs and fuel security in the UK.”
A second consultation on the SAF mandate has been launched, which sets out how the mandate will deliver carbon savings, provide incentives to SAF producers and signal to investors the vital role SAF will play in the future of UK aviation.
Alderslade commented: “The SAF mandate consultation is extremely positive and will help to incentivise a market in SAF production.
“Likewise, we welcome the second round of the Advanced Fuels Fund which will assist with much of the planning and construction work for the initial SAF plants here in the UK.
“That said, we have long been clear that whilst a mandate creates demand for SAF it does not provide revenue certainty for producers in what is still a nascent industry.
“Airlines will pick up SAF as required by government – either at home or through imports – but existing policy will not provide certainty to investors who want to build here in the UK and produce SAF locally.
“Without a clear commitment to a revenue certainty mechanism, without the need for public subsidy, in the coming days we risk this investment – and the tens of thousands of jobs and huge export potential from a homegrown SAF industry – going to the US, who announced their own support for SAF production months ago.
“We look forward to working with HM Treasury and the Department for Transport at pace to agree ways of ensuring this opportunity isn’t lost.”
The government package also commits nearly £400 million to accelerate the development of electric vehicle charging infrastructure across England.