UK’s Sustainable Aviation Fuel mandate now in force
On January 1st the UK’s Sustainable Aviation Fuel (SAF) Mandate came into force, meaning that there will be an increasing amount of greener fuels in the UK’s aviation fuel mix.
The purpose of the Mandate is to encourage the supply of SAF within the aviation industry by setting a legal obligation on fuel suppliers in the UK to supply an increasing proportion of SAF over time.
As of now, that amount represents 2% of total UK jet fuel demand, which will increase to 10% in 2030 and 22% in 2040.
Suppliers of SAF will receive certificates in proportion to the level of GHG emission reductions the fuel delivers. They can use the certificates as proof that they have met their obligation, trade them to other suppliers, or pay a buy-out price.
A variety of different fuels may be considered sustainable but to meet the criteria of the mandate, they fuel must achieve reduce GHG emissions emissions by at least 40%.
In order to encourage research and development into advanced fuel alternatives, a cap has been placed on one of the most common SAFs – HEFA (hydroprocessed esters and fatty acids) which is developed from oils or fats, such as used cooking oil. HEFA can contribute a maximum amount (100%) of SAF demand in 2025, decreasing to 71% in 2030 and 35% in 2040.
SAF produced from food, feed or energy crops is not eligible.
In order to attract investment in new SAF plants in the UK, the government has said it will introduce a revenue certainty mechanism for SAF producers to ‘reduce risk, give investors the confidence they need to invest in UK SAF plants and encourage the supply of SAF for the UK aviation sector.’
A consultation on the revenue certainty mechanism will be launched early this year.
Duncan McCourt, Chief Executive of Sustainable Aviation, said: ‘Sustainable Aviation welcomes the introduction of this mandate, which will drive the demand needed to help deliver SAF at scale.
‘SAF is a critical component in the industry’s plan to reach net zero, representing almost 40% of the carbon reduction that will make net zero a reality in 2050.
‘Alongside the mandate, we also need a well-designed revenue certainty mechanism to help accelerate domestic SAF production and support compliance with the mandate, by kickstarting UK SAF production in earnest this decade. We look forward to the upcoming consultation and to the mechanism being delivered into law as soon as possible.’
Tim Alderslade, CEO of Airlines UK, said: ‘UK airlines support the SAF Mandate as both a powerful and practical tool for driving down aviation carbon emissions and a clear signal that the industry is fully committed to a net zero future.
‘Our priority is ensuring airlines have access to the increasing volumes of SAF required to meet the mandate as global demand soars, at the most competitive price possible for consumers.
‘The UK mandate is ambitious and scaling SAF production will mean further work to expand eligible feedstocks, incentives to help cut costs and, critically, ensuring the design of the revenue certainty mechanism enables the UK to increase production of advanced fuels this decade whilst keeping costs as low as possible, critical for achieving mandate compliance and avoiding supplier buy-out.’
The SAF Mandate could deliver up to 6.3 megatonnes of carbon savings per year by 2040.
