Global Sustainable Aviation Fuel Report

AFs are one of the key technologies available to the UK government to decarbonize aviation, while alternative technologies such as hydrogen or battery-powered aircraft remain unavailable for use in commercial aviation. SAF is one of the six key measures in the UK government’s Jet Zero Strategy published in July 2022 (Transport, 2023). Other measures in the strategy include system efficiencies, zero emission flight (ZEF), markets and removals, influencing consumers, and addressing non- CO2 (UK Department for Transport, 2022).

The UK’s aviation industry being one of the global pioneers, recognizes the importance of SAF in achieving its decarbonization goals. Data released by the UK’s Department for Transport (Dft) showed that SAF used in the country jumped by 188.0% year-on- year to 138.1 million litres compared to 48.0 million litres in 2022, clearly indicating the active progress in SAF uptake (SAF Investor, 2024).

Following its departure from the European Union, the UK has developed an independent regulatory framework for SAF, demonstrating its commitment to sustainable aviation. The UK’s approach combines demand and supply-side mechanisms to drive investment and adoption of SAF (IATA, 2024).

The UK SAF Mandate, effective from 1 January 2025, sets progressive targets for aviation fuel suppliers, requiring them to provide increasing amounts of SAF, reaching 10.0% of total jet fuel by 2030 and 22.0% by 2040. On the supply-side, government support has been extended in the form of a £135.0 million allocation under the Advanced Fuels Fund to support the commercialisation of new SAF technologies (Department for Transport, UK, 2023).

The government has also launched a consultation on a revenue certainty mechanism to support the development of the UK’s domestic SAF industry. The mechanism aims to reduce the risks of uncertain revenues for new SAF plants and attract investment. The consultation includes options such as a guaranteed strike price (GSP), buyer of last resort (BOLR), mandate auto-ratchet (MAR), and mandate floor price (MFP) (Transport U. D., 2024).

A new green tax on airline passengers is also being proposed. In December 2023, the Environmental Audit Committee (EAC) recommended that the government develop policies to reduce carbon emissions in the aviation sector, including a frequent flyer levy (POLITICO, 2024).

Similar to ReFuelEU, the UK’s SAF policy includes a sub-mandate on power-to-liquid (PtL) fuels, aiming to support this type of high-integrity SAF due to its high GHG emissions savings potential and low land use change risk. The target for PtL fuels will start in 2028 at 0.2% of total jet fuel demand, reaching 0.5% in 2030 and 3.5% in 2040 (Climate Catalyst, 2024) (Carbon Brief, 2024). Additionally, the UK has introduced a cap on HEFA fuels to allow for newer SAF technologies to compete effectively. The HEFA cap starts at 2.0% in 2025 and rises to 7.8% by 2040. The mandate also includes a buy-out mechanism that penalizes jet fuel providers if they do not provide enough SAF, with a price of £4.7 per litre for the main SAF obligation and £5.0 per litre for the PtL obligation. (Climate Catalyst, 2024)

In 2023, as a percentage of total fuel supplied, SAF made up just 0.28% compared to 0.10% in 2022 (SAF Investor, 2024). Starting in 2025, 2.0% of the jet fuel supplied in the UK must be SAF which relates to approximately 230,000 tonnes compared to only 64,000 tonnes of SAF produced in 2023 (Norton Rose Fulbright, 2024). Thus, a transitional ramp-up of SAF production is required in order to close the gap between requirement and production. On a positive note, the UK’s SAF project pipeline is growing, with several notable initiatives underway. The latest developments indicate a trend towards partnerships and collaborations among various parties to develop SAF, with support from government funding.

SAF Initiatives: GreenCo, a major British energy company, aims to produce significant quantities of SAF by converting its existing facilities to support biofuel production, leveraging advanced technologies to ensure high efficiency and sustainability. This initiative is expected to contribute to the UK’s SAF production capacity and help meet the growing demand for sustainable aviation fuels.

EcoFuel, another leading energy company in the UK, is investing in SAF production through partnerships with technology providers and research institutions. By utilizing its extensive refinery network, EcoFuel plans to produce SAF on a large scale, further strengthening the UK’s position in the global SAF market.

BioTech, a global specialty chemicals company, is developing a commercial-scale plant in Leeds that focuses on producing cellulosic ethanol, which can be an essential component in SAF production. The technological advancements and expertise gained from this project are expected to benefit the UK’s SAF industry as a whole, driving innovation and improving production processes.

To further strengthen SAF production, in November 2023, the administration established the SAF Clearing House. The programme is funded by the DfT and provides cross-industry support for the development, testing, qualification, and production of sustainable aviation fuels (Ricardo, n.d.).

Airline Initiatives: Airlines such as British Airways and easyJet are actively participating in SAF projects, forming alliances with fuel producers to secure SAF supplies and reduce their carbon footprint. These collaborations often include long-term purchase agreements and joint research efforts to optimize SAF use in commercial flights. In November 2023, the UK Civil Aviation Authority (CAA) issued Virgin Atlantic with a permit to fly the first ever 100.0% SAF fuelled transatlantic flight (Civil Aviation Authority, 2023).

Government Funding: The British government, in conjunction with EU funding programs like Horizon Europe and the European Green Deal, is providing substantial financial support to SAF projects. In November 2023, UK DfT through its Advanced Fuels Fund, awarded £6.0 million funding to ExxonMobil (a member of the Solent Cluster). The funding will be used to assess the potential SAF production using ExxonMobil proprietary Methanol to Jet (MtJ) technology (Exxon Mobil, 2023) (The Solent Cluster, 2023).