King Charles confirms UK plans to establish revenue support mechanism for SAF
SOURCE: Google Maps
July 17, 2024
BY Erin Voegele
King Charles announced that the U.K. Parliament will soon introduce a bill to support the production of sustainable aviation fuel (SAF) via a revenue support mechanism during his July 17 speech that formally opened a new session of the British Parliament.
The U.K. government earlier this year confirmed plans to create a SAF mandate that will require 22% of all jet fuel in flights taking off from the U.K. to come from sustainable sources by 2040. The mandate, which is subject to parliamentary approval, is expected to come into force in January 2025.
The mandate is set to begin at 2% of aviation fuel supplied in 2025, ramping up to 10% in 2030 and 22% in 2040. Hydroprocessed esters and fatty acids will be allowed to contribute up to 100% of SAF demand in 2025 and 2026, decreasing to 71% in 2030 and 35% in 2040.
In coordination with the SAF mandate announcement, the U.K. Department of Transport on April 25 also launched a public consultation on revenue certainty options to support the SAF industry in the U.K. The revenue certainty mechanism aims to reduce the risk of uncertain revenues for emerging SAF plants, helping to attract investment to U.K. SAF projects and increase domestic SAF production.
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The public consultation set out four options for the revenue support mechanism along with details that describe how quickly each of the four mechanisms could be delivered and the scale of investment each is likely to bring forward. The government accepted public comments on the four options through June 20. Within the consultation documents, the U.K. government said the revenue certainty mechanism could be in force as early as 2026, depending on the legislative process.
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