The UK government has published a consultation setting out how it intends to support the green fuels sector and provide certainty for SAF producers.

Apart from the obvious benefits to meeting the nation’s climate commitments, backing investment in the low carbon sector also has huge potential for driving economic growth, as it’s expected to support up to 15,000 new jobs and deliver £5 billion to the UK economy by 2050.

The proposals will tackle the current uncertainty in the sector by introducing an industry funded price guarantee – known as the Revenue Certainty Mechanism (RCM) – to ensure a steady income flow for producers, even if the price of SAF fluctuates, helping to keep down costs for airlines.

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The proposals will help to reduce risk, give investors the confidence they need to invest in UK SAF plants and help the sector secure the supply it needs to bolster the SAF industry in the UK. The Mechanism is also designed to limit costs and protect travellers against significant cost increases, with any rises expected to be in line with the usual variation of ticket prices.

The revenue certainty comes alongside the introduction of the SAF Mandate in January, which requires a growing percentage of aviation fuel to come from sustainable sources.

Aviation Minister, Mike Kane said:    “We are committed to building the technology and fuel supply that will see greener flying become a reality, in a way that protects consumers. “As part of our Plan for Change, these proposals will power up SAF production in the UK, support thousands of green jobs and bolster expansion plans.”

Tim Alderslade, Chief Executive of Airlines UK, said: “UK airlines support the RCM as a means of driving production in SAF and ensuring the industry can comply with the mandate.

“We look forward to working with Government on its design with a particular focus on encouraging a competitive market and supporting FOAK plants. The goal must be the production of as much SAF at the cheapest possible price for consumers, to help the industry get to net zero, support growth in UK aviation whilst minimising the impact on passengers.”