The UK government will support the production of sustainable aviation fuel (SAF), it said on March 3, 2025.
The government said it will provide “certainty” for SAF producers. The proposal will introduce an industry funded price guarantee, even if the price of SAF fluctuates, known as the ‘revenue certainty mechanism’ (RCM) to provide a “steady income flow” for sustainable fuel producers.
The mechanism is expected to reduce risk and provide confidence to investors. In turn, this will boost investment and secure SAF supply. In addition, consumers will be protected against significant SAF cost increases, thus intending to protect ticket prices.
“We are committed to building the technology and fuel supply that will see greener flying become a reality, in a way that protects consumers,” said aviation minister Mike Kane.
Along with the SAF mandate introduced in January 2025, the mechanism will support the country's net zero ambitions. The support will also build on the £63 million recently announced by the chancellor to boost production of alternative fuels in the UK.
With this greater support for investment, the UK expects this to support up to 15,000 new jobs and deliver £5bn to the UK economy by 2050.
The consultation will run through March, with the mechanism bill being laid in UK parliament in spring.
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