- Starting January 1, the UK will mandate 2% sustainable aviation fuel (SAF) for aircraft fuel, which will increase to 10% by 2030 and 22% by 2040.
- A buyout mechanism will allow energy companies to offset SAF production costs, setting SAF prices at £4.70 and power-to-liquid fuel at £5 per litre.
- The mandate includes limits on feedstocks for SAF production, aiming to reduce reliance on the HEFA process, with stricter limits set for 2030 and 2040.
The UK will implement a legally binding mandate for sustainable aviation fuel (SAF) starting January 1, 2025. The new law requires 2% of all aircraft fuel delivered to UK airports to be SAF. This requirement will increase to 10% by 2030 and 22% by 2040.
In July, the Labour government introduced the mandate to reduce aviation’s carbon footprint. However, the government has stated that the mandate will not exceed 22% until the SAF supply becomes more specific. The mandate also includes a target for power-to-liquid fuels, which must make up 3.5% of aircraft fuel by 2040. These fuels will increase gradually starting in 2028.
The government has included a buyout mechanism in the legislation. This mechanism allows energy companies to either ramp up SAF production or help cover the cost of higher fuel prices. The government set per-liter prices at £4.70 ($5.92) for SAF and £5 ($6.30) for power-to-liquid fuel.
Additionally, the legislation limits the feedstocks used in the hydroprocessed esters and fatty acids (HEFA) process to produce SAF. However, these restrictions will not take full effect until other types of SAF become commercially viable. The government will not limit HEFA supplies for the first two years. By 2030, HEFA must account for no more than 71% of the total supply; by 2040, it must fall to 35%.
The UK’s SAF mandate mirrors the European Union’s mandate, starting at 2% on January 1. However, the EU’s targets are more ambitious. By 2040, SAF must make up 34% of aircraft fuel, rising to 42% by 2045 and 70% by 2050.
With its new mandate, the UK government aims to boost SAF production. It introduced a revenue certainty mechanism to encourage energy companies to invest in SAF production capacity. This move will reduce investment risks and attract new SAF production facilities to the UK, creating jobs and supporting the green energy sector.
This new legislation is part of the UK’s broader effort to decarbonise aviation. The government hopes the mandate will accelerate the development of SAF technologies and increase supply. The plan should also help the UK meet its climate targets and contribute to a more sustainable aviation industry.
The government’s decision to price SAF and power-to-liquid fuel aims to stabilise the market. Energy companies will increase production to meet demand, and price certainty will make SAF more competitive with traditional jet fuel.
The UK’s SAF mandate represents a significant step towards cleaner aviation. It also aligns with a growing trend among governments to legislate for cleaner fuels in the transport sector. While the UK’s target is ambitious, it fits within global efforts to reduce emissions from aviation and combat climate change.
The UK will now join several other countries in requiring SAF in aviation, and both the EU and the UK are setting ambitious long-term goals.