The UK government has announced plans for a revenue-certainty program for the sustainable aviation fuel (SAF) industry. The goal is to boost confidence and investment in domestic SAF production.
The proposed program would give producers greater assurance on earnings from SAF output to accelerate investment in SAF production and so help reduce aviation’s fossil fuel reliance as part of the UK’s net-zero strategy.
The plan is part of a broader initiative that includes having at least five commercial SAF plants under construction in the UK by 2025.
Industry groups, such as the Jet Zero Council and Renewable Transport Fuel Association welcomed the plan. They noted it would help drive capital into proposed projects and maintain momentum.
But stakeholders also cautioned that financial risks must be shared fairly. The scheme’s details remain undetermined pending consultation.
A spokesperson from Sustainable Aviation–an alliance of industry stakeholders in the field–told Aviation Week the program could catalyze SAF development and create jobs, but its impact will depend on striking the right balance between public and private risk-sharing.
Still only in the consultation stage, the government will have to ensure the scheme’s structure is generous enough to achieve the competitiveness it hopes for.