The government has set out its plan to support the green fuels sector and provide certainty for sustainable aviation fuel (SAF) producers.
It has published a consultation, mapping out its support for the SAF industry, setting the scene by detailing just how crucial it is set to be for the future of aviation. Compared to fossil fuels, SAF can cut greenhouse gas emissions by 70%, while the industry brings huge potential for economic growth with it expected to support up to 15,000 new jobs and deliver £5 billion to the UK economy by 2050.
Central to the government’s consultation is the introduction of a revenue certainty mechanism for the SAF industry, promising steady income flow for producers, even if the price of SAF happens to fluctuate. This will see costs kept down for both airlines and holidaymakers, with risk reduced, paving the way for investors to invest in UK SAF plants and ensure the sector is able to secure the supply it needs for the industry to thrive in the UK.
It comes alongside the Sustainable Aviation Fuel Mandate, introduced in January, which requires a growing percentage of aviation fuel to come from sustainable sources in a bid to support industry by securing demand and driving production in the UK.
Karen Dee, Chief Executive of AirportsUK, said: “Airports will work with government as part of the aviation sector to develop the right solution that will give the market the confidence it needs to bring investment forward, enabling a new UK industry producing homegrown SAF to emerge. This, in turn, will allow the UK’s global air connectivity to expand sustainably within our net zero targets and play an increasing role in growing our economy, something the government is prioritising to drive up the prosperity of the whole country.”
