New measures to help the UK take off as a world leader in sustainable aviation fuel (SAF), supporting the growth in the industry and jobs across the country, were introduced today in Parliament.
Sustainable aviation fuel is an alternative to fossil jet fuel, which reduces greenhouse gas emissions by 70% on average on a lifecycle basis.
With decarbonisation key to accelerating expansion plans, the government has also announced an additional £400,000 of funding for producers so that new clean fuels can get to market quicker, speeding up the UK’s path to green flying.
While the fuel is more costly to produce than jet fuel, the government’s SAF measures protect industry and consumers from excessive costs.
In addition, the revenue certainty mechanism (RCM) will keep ticket price changes minimal, keeping fluctuations to £1.50 a year on average, and will be industry-funded through a levy on aviation fuel suppliers.
The Department for Transport (DfT) will continue to engage with industry on the details of the RCM, including pricing.
Speeding up the SAF commercialisation process
A new round of government funding is also being announced to offer fuel producers a share of £400,000 to support the testing and qualification of green fuels, helping to get them to market quicker.
This support for producers follows £63m of funding made available through the Advanced Fuels Fund this year.
The government’s commitments to green fuel will help deliver on its missions to kickstart economic growth via job creation and become a clean energy superpower. It will also allow the UK to go further and faster with expansion plans, boosting the tourism industry.
Aviation Minister, Mike Kane, stated: “Aviation continues to be one of the fastest growing and most integral parts of the UK’s economy, offering more jobs across engineering, tourism and hospitality, and as we support aviation expansion, we need to move at full throttle towards decarbonisation.
“We are making the UK one of the best places in the world to produce sustainable aviation fuel, putting the pedal down on growth and boosting job opportunities across the country.”
22% of jet fuel must be green by 2040
The new legislation will help industry meet its requirements under the SAF Mandate, introduced in January this year, which specifies that at least 10% of all jet fuel used in flights taking off from the UK from 2030, be made with sustainable fuel, rising to 22% by 2040.
The government’s approach to low-carbon fuels could add up to £5bn to the economy by 2050 and position the UK as a global hub for SAF production.
“A UK SAF industry, kick-started by the RCM and SAF Mandate, can create tens of thousands of jobs across the country whilst supporting our world-class aviation sector to deliver economic growth,” explained Tim Alderslade, Chief Executive of Airlines UK.
Duncan McCourt, Chief Executive of Sustainable Aviation, added: “We hugely welcome the publication of this important legislation. SAF is a crucial element in the plan to decarbonise aviation as it can be used in existing aircraft with existing infrastructure.”
He concluded: “The challenge now is to scale the industry, ensuring we have enough SAF to meet the mandate whilst keeping costs low and creating thousands of jobs in the process. This legislation will help to do that.”
