The UK government announced today that it has confirmed its target mandating at least 10% sustainable aviation fuel (SAF) in the UK jet fuel mix by 2030.
Fuel accounts for the vast majority of the aviation sector’s emissions. Generally produced from sustainable resources, like waste oils and agricultural residues, SAF is seen as one of the key tools to help decarbonize the aviation industry in the near- to medium-term. SAF producers estimate the fuels can result in lifecycle GHG emissions reductions of as much as 85% relative to conventional fuels.
Efforts to meaningfully increase the use of SAF by airlines face significant challenges, however, including the low supply currently available on the market, and prices well above those of conventional fossil-based fuels. Globally, SAF currently represents less than 0.1% of jet fuel volumes.
The new UK announcement forms part of the government’s sustainable aviation fuel mandate, which will come into force in January 2025, subject to parliamentary approval. The mandate follows the launch by the government in 2022 of its “Jet Zero” strategy to achieve a net zero emissions aviation sector by 2050 which identified priority action areas including accelerating supply and demand of SAF, as well as including improving the efficiency of aircraft, airports and airspace, supporting the development of zero-emissions aircraft, and developing carbon markets and emissions removal technologies to help offset residual emissions.
According to the UK Department for Transport, the government’s targets will see around 1.2 million tonnes of SAF supplied to the UK airline industry each year, with the SAF industry estimated to add over £1.8 billion to the economy and create over 10,000 jobs.
Interim and long-term SAF targets under the plan include 2% SAF in the fuel mix in 2025, and 22% in 2040.
The government added that its plan aims to ensure that its plan doesn’t come at the expense of consumers, with the plan including a review mechanism to help manage prices and minimize the impact on ticket fares for passengers.
In addition to the new mandate, the government also announced the launch of a consultation into a range of options for a SAF revenue certainty scheme, aimed at guaranteeing revenue from SAF, and providing producers and investors with confidence to invest in the industry, with the consultation including a preferred option of a guaranteed strike price, or a pre-agreed price of SAF supplied to the UK market.
UK Transport Secretary Mark Harper said:
“As part of our plan to grow the economy, the measures announced today will give both UK aviation and the UK SAF industry the certainty they need to keep creating skilled British jobs while giving passengers the freedom to continue travelling by air in a way that’s fit for the future.”