The UK government has announced it will introduce a revenue certainty scheme to support SAF (sustainable aviation fuel) production in the UK.
As part of the Energy Bill, the government has tabled legislation that will launch a consultation on options for designing and implementing the scheme. The UK government says the scheme will contribute towards its commitment to having at least five commercial SAF plants under construction in the UK by 2025.
The UK government says the scheme, along with the introduction of a SAF mandate in 2025, will provide fuel security, grow the economy and help to create over 10,000 jobs by 2030, rising to 60,000 by 2050.
The Department for Transport (DfT) is launching a consultation on the design and delivery of the scheme, which is intended to be funded by industry.
This commitment is an important step to create cleaner and greener aviation in the UK.
Aviation and Maritime Minister Baroness Vere commented: “Not only will SAF bring countless economic opportunities, including creating thousands of green jobs, this certainty will allow the industry to harness its full potential, bringing us closer to net zero flying.
“This commitment is an important step to create cleaner and greener aviation in the UK and will cement our position as a global leader in innovation, creating a new talented workforce that champions decarbonisation and pave the way for future air travel.”
The government has also published a delivery plan for how the scheme can be delivered by the end of 2026, which builds on the work by the Jet Zero Council to consider the best way to support the aviation industry to decarbonise.
The £165 million Advanced Fuel Fund is also supporting scientific research and co-investing in innovative aerospace technology through over £600 million funding committed to the Aerospace Technology Institute to support the industry transition to net zero.
Affordable SAF, available at scale is critical to delivering net zero aviation by 2050.
In a statement given to Circular Online, a spokesperson for Sustainable Aviation (SA) said: “This is a welcome announcement that marks a significant milestone towards meeting the Government’s Jet Zero Strategy commitment of having at least five UK sustainable aviation fuel plants under construction by 2025.
“Affordable SAF, available at scale is critical to delivering net zero aviation by 2050. We look forward to working in partnership with government on the rapid design and implementation of a revenue certainty scheme, that will help unlock billions of pounds of private investment in the UK.
“Through the consultation expected shortly, we will be clear that any financial risk associated with backstopping the scheme must be shared fairly, noting that a mechanism underwritten by government has the potential to be either cost-neutral or even generate a surplus for the taxpayer over its lifetime.”
