The UK Government has announced the introduction of a sustainable aviation fuel (SAF) mandate, set to begin on 1st January 2025, subject to Parliamentary approval.
This initiative aims to decarbonise air travel and stimulate economic growth.
SAF can be used in existing aircraft and emits on average 70% fewer greenhouse gases than fossil jet fuel over its lifecycle.
The government’s strategy includes both the development and production of SAF, with a focus on promoting its use within the UK aviation industry.
The SAF mandate will initially require that 2% of the UK’s total jet fuel demand be met by SAF in 2025.
This percentage will increase to 10% by 2030 and 22% by 2040, remaining at this level until further supply certainty is achieved.
The mandate includes measures to encourage the development of advanced fuels and diversify feedstocks.
To support this mandate, the government will also introduce a revenue certainty mechanism (RCM) for SAF producers.
This mechanism aims to reduce investment risks and attract investment in new SAF plants across the UK, enhancing energy security and ensuring a steady supply of SAF for UK airlines.
The government estimates that the SAF mandate will contribute over £1.8 billion to the economy and create more than 10,000 jobs nationwide.
It is expected to deliver emission reductions of up to 2.7 MtCO2e by 2030 and up to 6.3 MtCO2e by 2040, providing investor confidence in the UK as a hub for SAF production and use.
Additionally, the mandate includes a buy-out mechanism to incentivise SAF supply while protecting consumers.
This mechanism sets a maximum price for the scheme and aims to minimise the impact on ticket prices.
The announcement follows the King’s Speech on 17 July, where the introduction of a bill to support SAF production was confirmed.
This announcement followed the world’s first commercial 100% SAF transatlantic flight, which departed from Heathrow in November, supported by government investment of up to £1 million.
