The UK government is set to introduce a 2% sustainable aviation fuel (SAF) mandate next year.
In a written statement to the House of Commons on 22 July, the UK Department for Transport (DfT) said – subject to parliamentary approval – a SAF mandate would be introduced on 1 January 2025.
The proposed SAF mandate would be introduced in phases starting at 2% in 2025 and increasing on a linear basis to 10% in 2030 and 22% in 2024, the agency said.
From 2040, the mandate would remain at 22% until there was greater certainty regarding SAF supply.
“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,” the agency said in the statement.
According to the DfT, the SAF mandate will place a cap on feedstocks used in the hydro-processed esters and fatty acids (HEFA) process, but not until other types of SAF were also commercially viable.
For the first two years, HEFA supply would not be limited under the mandate, with the HEFA cap expected to be set at 71% in 2030 and 35% in 2040.
The mandate would also include a separate obligation on power-to-liquid fuels scheduled to begin in 2028 and to reach 3.5% of total jet fuel demand in 2040.
According to the DfT, the mandate will include a buy-out mechanism for both the main and power-to-liquid obligations to incentivise supply while protecting consumers where suppliers are unable to secure a supply of SAF. These would be set at £4.70 (US$6.04)/litre and £5.00/(US$6.42) litre of fuel, respectively.
The agency said the buy-out mechanism provided an incentive for fuel suppliers to supply SAF into the market rather than pay the buy-out while a review mechanism would help minimise the impact on ticket fares for airline passengers.
In an earlier announcement on 17 July, the DfT said it would be introducing a revenue certainty mechanism (RCM) for SAF producers who were looking to invest in new plants in the UK.
“This builds on the SAF mandate, which will create demand for SAF by setting targets on fuel suppliers to use a proportion of SAF. This new sector will create jobs and growth opportunities in the UK, help secure a supply of SAF for UK airlines, and enhance energy security,” the agency said.
With several SAF plants being developed in the UK, the DfT said the RCM would reduce risk, giving investors confidence to invest in domestic SAF plants.