Sustainable Aviation Fuel

There are many ways to reduce emissions from aviation, such as airspace modernisation, and eventually new fuel sources such as hydrogen planes. But the only way to quickly reduce emissions is sustainable aviation fuel, made from renewable sources such as municipal waste, used cooking oil, old tyres, and forestry and agricultural waste. HEFA is the only commercially available source of SAF, and currently makes up only about 1% of supply in the UK.

To ensure the take of SAF, Anthony Browne passed the SAF mandate legislation, requiring airlines to increase the use of SAF progressively up to 10% by 2030. Detailed modelling was done on different scenarios of different supplies of SAF to ensure that the impact on ticket prices would be acceptable. The government is spending £130m supporting a dozen SAF production pilots in the UK. To ensure investability, an industry-led revenue certainty mechanism is being brought in that is aimed at reducing the pricing risk for producers.

It is one of the most complex and risky energy transitions, as much of the technology is unproven, and there are limited existing markets to guide policy making.