The Department for Transport (DfT) has introduced a revenue certainty scheme as part of the UK’s sustainable aviation fuel programme, supporting the industry to decarbonise.
The revenue certainty scheme, which is intended to be funded by industry, will give the aviation sector the launchpad to confidently invest in sustainable aviation fuel and transition away from fossil fuel reliance. It will aim to give producers assurance about earnings from the green fuel they produce.
A delivery plan for how this scheme can be delivered by the end of 2026 has also been published.
Aviation and Maritime Minister Baroness Vere said sustainable aviation fuel will bring the industry “closer to net zero flying” as well as bringing “countless economic opportunities, including creating thousands of green jobs.”
“This commitment is an important step to create cleaner and greener aviation in the UK and will cement our position as a global leader in innovation, creating a new talented workforce that champions decarbonisation and pave the way for future air travel,” she added.
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The scheme, along with the introduction of a sustainable aviation fuel mandate in 2025, will provide fuel security, grow the economy and help to create over 10,000 jobs by 2030, rising to 60,000 by 2050.
Through the programme, government will work towards its commitment of having at least five commercial sustainable aviation fuel plants under construction in the UK by 2025.
The scheme also follows a £165 million Advanced Fuel Fund, which is providing investors with reassurance in UK SAF, as well as supporting scientific research and co-investing in innovative aerospace technology through over £600 million funding committed to the Aerospace Technology Institute to support the industry transition to net zero.
A Sustainable Aviation spokesperson said the scheme is a “welcome announcement” and is a “significant milestone towards meeting the Government’s Jet Zero Strategy commitment of having at least five UK sustainable aviation fuel plants under construction by 2025.”
“Affordable sustainable aviation fuel, available at scale is critical to delivering net zero aviation by 2050,” they added.
“Through the consultation expected shortly, we will be clear that any financial risk associated with backstopping the scheme must be shared fairly, noting that a mechanism underwritten by Government has the potential be either cost neutral, or even generate a surplus for the tax payer over its lifetime’,” the spokesperson continued.
Tim Alderslade, CEO of Airlines UK, the industry body representing EasyJet and Virgin Atlantic added the fuel is “an important technology in our net zero arsenal.”
“It is a proven way of driving aviation emissions down – particularly for long-haul – and will make the biggest contribution to aviation decarbonisation to 2050,” he added.
