Newly appointed UK Secretary of State for Transport Louise Haigh announced in a statement to Parliament that the new government intends to move forward with an SAF mandate, requiring the introduction of sustainable aviation fuel (SAF) in the UK’s jet fuel mix, starting at 2% in 2025, and ramping up to 22% by 2040.

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.

Forming part of its Jet Zero” strategy to achieve a net zero emissions aviation sector by 2050, the prior UK government introduced the SAF mandate earlier this year. The mandate is still subject to Parliamentary approval.

In her statement, Secretary Haigh confirmed the mandate’s targets of 2% SAF in 2025, increasing on a linear basis to 10% by 2030 and 22% by 2040.

Haigh also provided details of the mandate aimed at encouraging innovation of advanced fuels and feedstock diversification to reduce dependence on scarce resources. These include a cap on feedstocks used in the hydroprocessed esters and fatty acids (HEFA) process –typically based on waste fats, oils, and greases as feedstock – which will start only begin after two years due to HEFA’s current significant SAF role, and ramp up over time, as well as a separate obligation on power-to-liquid fuels, one of the more promising long-term SAF pathways, beginning in 2028.

Additionally, the mandate includes buy-out mechanisms for the SAF and power to liquid obligations at £4.70 and £5.00 per liter of fuel, respectively, aimed at incentivizing supply while protecting consumers in areas where SAF supply is more limited, and effectively setting a maximum price for the initiative.

The statement on the mandate follows an announcement by the government last week that it will introduce a bill aimed at supporting SAF production through the introduction of a revenue certainty mechanism (RCM) for SAF producers who are looking to invest in new plants in the UK.

Haigh said:

“Developing, using and producing SAF will help drive our missions to kickstart economic growth and make Britain a clean energy superpower, delivering the government’s manifesto commitment to secure the UK aviation industry’s long-term future, including through promoting sustainable aviation fuels.”