Measures to boost UK's sustainable aviation fuels sector
The government reports plans 'to protect industry and consumers from excessive costs'.
New laws announced aim to increase homegrown sustainable aviation fuel (SAF), ensuring UK revenue certainty for green fuel producers, and awarding an additional £400,000 of funding for producers so that new clean fuels can get to market quicker.
SAF is an alternative to fossil jet fuel, but is more costly to produce than jet fuel.
A revenue certainty mechanism (RCM) for green fuel producers seeks to keep ticket price changes minimal.
It will be industry funded through a levy on aviation fuel suppliers. The Department for Transport will engage with industry on the details of the RCM, including pricing.
The new round of funding for testing and validating new fuels follows £63mln of funding made available through the Advanced Fuels Fund this year.
The legislation is said to be designed to 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.
Duncan McCourt, Chief Executive of Sustainable Aviation, comments, '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.
'The challenge now is to scale the industry, ensuring we have enough SAF to meet the mandate, whilst keeping costs low and create thousands of jobs in the process. This legislation will help to do that.'
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