The UK Government has committed to introduce a revenue certainty scheme as part of the UK’s sustainable aviation fuels (SAF) programme.
As part of the Energy Bill, the Government has tabled legislation that will launch a consultation on options for designing and implementing the scheme.
Th government claims that this scheme will positively contribute towards Government’s ambitious commitment of having at least five commercial SAF plants under construction in the UK by 2025 and cement the UK’s status as a world leader in this industry.
The Department for Transport will launch a consultation on the design and delivery of the, which is intended to be funded by industry and provide the aviation sector “the launchpad to confidently invest in SAF and transition away from fossil fuel reliance”.
Aviation and Maritime Minister Baroness Vere said: “Not only will Sustainable Aviation Fuel bring countless economic opportunities, including creating thousands of green jobs, this certainty will allow the industry to harness its full potential, bringing us closer to net zero flying.
“This commitment is an important step to create cleaner and greener aviation in the UK and will cement our position as a global leader in innovation, creating a new talented workforce that champions decarbonisation, and pave the way for future air travel.”
A delivery plan for how this mechanism can be delivered by the end of 2026 has also been published, building on the work by the Jet Zero Council to consider the best way to support the aviation industry to decarbonise.
Jonathon Counsell, Chair of the Jet Zero Council SAF Delivery Group, said: “SAF will play the most important role in meeting our net zero targets and especially in reducing aviation’s emissions this decade. So we welcome the commitment to a revenue certainty scheme. Industry is ready to take part in the consultation process to determine the right mechanism to secure the investment needed to create a UK SAF industry. The Jet Zero SAF Delivery Group will work with Government to move forward quickly with the consultation. We will work with the Government to be able to implement measures at the earliest opportunity so that we can hit the target of five UK SAF plants in construction by 2025.“
Sustainable Aviation (SA), an alliance of UK airlines, airports, aerospace manufacturers, air navigation service providers and SAF producers, issued the following statement in response to the announcement.
“This is a welcome announcement that marks a significant milestone towards meeting the Government’s Jet Zero Strategy commitment of having at least five UK sustainable aviation fuel plants under construction by 2025...
“Affordable SAF, available at scale is critical to delivering net zero aviation by 2050. We look forward to working in partnership with government on the rapid design and implementation of a revenue certainty scheme, that will help unlock billions of pounds of private investment in the UK. Through the consultation expected shortly, we will be clear that any financial risk associated with backstopping the scheme must be shared fairly, noting that a mechanism underwritten by Government has the potential be either cost neutral, or even generate a surplus for the taxpayer over its lifetime.”