The government today committed to “ambitious but achievable targets” that will see around 1.2 million tonnes of sustainable aviation fuel (SAF) supplied a year to UK airlines – claimed to be enough to circle the globe 3,000 times.
The response to long-running aviation industry demands for UK green fuel production follows £135 million of recent funding allocated through the Advanced Fuels Fund, supporting the growth of 13 SAF projects across the country.
The aim is to ensure 10% of all jet fuel in flights taking off from the UK comes from sustainable sources by 2030 through a Sustainable Aviation Fuel Mandate.
The SAF mandate will come into force in January 2025, subject to parliamentary approval.
It will ensure SAF is created in ways that are better for the environment, encouraging techniques that turn renewable energy into fuel, known as power-to-liquid.
The use of different types of waste to produce fuel will be incentivised, such as sawdust and bark from forests, to tackle global issues such as deforestation, biodiversity and competition with food production – while placing a cap on fuel primarily made from cooking oil, which is the cheapest and most developed SAF pathway, according to the Department for Transport.
The SAF plan followed “extensive consultations” with the industry and the world’s first commercial 100% SAF transatlantic flight operating by Virgin Atlantic from Heathrow last November.
A DfT spokesperson said: “While we recognise SAF may be more expensive than traditional jet fuel in the immediate term, we’re ensuring decarbonisation doesn’t come at the expense of consumers.
“This plan is part of our approach to ensure that the rationing of flights through ‘demand management’ is ruled out.
“The plan includes a review mechanism to help manage prices and minimise the impact on ticket fares for passengers.
“The government also has the power to change key limits within the mandate to block higher price rises in the case of SAF shortages – keeping the impact on consumers to a minimum.
“Providing sufficient SAF is available, any increases in air fares as a result of SAF will fall well within the range of usual fluctuations in prices we see every year and the government have plans in place to prevent any major hikes.”
A consultation will look into a range of options for a SAF “revenue certainty scheme”. The aim will be to guarantee revenue from SAF and provide new and existing producers and investors with the confidence to continue investing in the industry.
Transport secretary Mark Harper said: “Sustainable aviation fuel protects the future of UK aviation, the thousands of British jobs that depend on it, and the holidays and business travel flights that we all rely on.
“As part of our plan to grow the economy, the measures announced today will give both UK aviation and the UK SAF industry the certainty they need to keep creating skilled British jobs while giving passengers the freedom to continue travelling by air in a way that’s fit for the future.”
Airport Operators Association chief executive Karen Gee said “Sustainable aviation fuel is a key part of the decarbonisation of air travel and a domestic SAF industry will create jobs, wealth and help the UK secure its energy independence.
“We are pleased that the government has brought forward proposals for a mandate and revenue certainty scheme, that will send the message to investors that the UK is serious about developing its own production facilities.
“Government and industry must now work together to keep this momentum towards delivery going so that we can grow sustainably and meet our carbon targets.”
Renewable Transport Fuel Association chief executive Gaynor Hartnell added: “The mandate, in combination with guaranteed pricing, will see the UK start to produce SAF within the next couple of years.
“There are many ways of making SAF, and all have a vital role to play. Many of the plants our members will build will be ground-breaking, first-of-a-kind installations.
“The UK policy aims specifically to encourage SAF made from wastes, which presents an opportunity for innovation and ultimately the export of technology and expertise.”
Luis Gallego, chief executive of British Airways owner IAG, said: “We will continue to support the work of the Jet Zero Council to deliver the revenue certainty scheme so that much-needed SAF plants can start to be built here in the UK.”
Virgin Atlantic also welcomed the SAF mandate, but a spokesperson said: “We remain concerned that government is considering placing the burden of UK SAF production on airlines and consumers.
“The government must go further to support UK production, attracting private investment and delivering on its Jet Zero strategy.
“As demonstrated with [Virgin Atlantic’s] Flight 100 last year, if enough SAF is made, we will fly it.”
Abta chief executive Mark Tanzer welcomed the fact that “government and industry are aligned in the ambition to integrate the use of SAF into UK aviation” but said the government “needs to put the right infrastructure in place” for the mandate to become a reality.
He argued: “We need the government’s support in a number of areas, including establishing a domestic industry for production of SAF.”
Tanzer said the announcement “marks some progress, with the launch of a consultation on the revenue certainty scheme essential for creating the conditions for a competitive UK SAF market”.
But he added: “It’s vital this work accelerates if the UK is to generate its own SAF at the levels needed.”
He noted the importance of flying remaining affordable while pursuing decarbonisation, a point raised in Abta’s Manifesto for Travel and Tourism published last week, and said: “It’s encouraging to see the government recognise this by including a review mechanism in its plans to help manage prices and minimise the impact on ticket prices.”
Manchester Airports Group chief sustainability officer Neil Robinson said: “The right revenue certainty mechanism will show that the UK is serious about creating a thriving SAF sector and make the difference in attracting investors and fuel producers to set up in this country, which will create tens of thousands of high-value jobs.”