UK mandate pushes for 10% SAF use on all flights by 2030

The United Kingdom is supporting proposed legislation to use 10% sustainable aviation fuel on all flights out of the country by 2030. [caption id="attachment_89599" align="alignright" width="300"] (Photo/Can Stock)[/caption] The proposal, introduced in July 2022, is in line with United Kingdom- and IATA -backed target of reaching net zero by 2050. However, the legislation’s target surpasses the European Union ’s mandate of 6% sustainable aviation fuel (SAF) use by 2030, according to the proposal details released April 25. The proposal states that “the overall SAF trajectory will be set at 2% of the total fossil jet fuel supplied, which is approximately equal to 230,000 tonnes of SAF [by 2025]. This will increase annually to 10% in 2030 and 22% in 2040.” The country will additionally implement a power-to-liquid fuels obligation of 0.2% by 2028 and 3.5% by 2040, according to the government proposal. Power-to-liquid renewable fuels, also called eSAF , is SAF created from wind and solar energy. The proposal states that the government reserves the right to review and revise the mandate should SAF feedstock shortages or pricing prove prohibitive to its target. “The government’s vision is for the U.K. to be a global leader in the development, production and use of SAF,” Mark Harper , the U.K. secretary of state for transport, said in the proposal. U.K. officials set out three initiatives for the country’s SAF program in a March 2023 consultation, including: Drive demand for SAF in the U.K.; Kickstart a U.K. SAF industry; and Collaborate with industry stakeholders and investors to build long-term supply. Present challenges While industry leaders, including IATA, have shifted focus in recent years toward SAF as the most reliable pathway toward net zero, it comes with challenges. SAF feedstocks are too scarce to scale up production as needed. SAF produced globally in 2023 doubled to 600 million liters . By 2050, however, the overall need will be 450 billion liters to achieve net zero, according to TIACA — meaning 2023 production was about 1% of the need by 2050. SAF additionally costs about twice the price of traditional jet fuel. “Regardless of the requirements, the fuel needs to be available writ large to the industry in order to attain [net zero],” Brandon Fried , executive director at the Airforwarders Association , told Air Cargo Next . “If not, it’s wishful thinking on the part of the U.K. or any government. “Further, engine technology needs to be sufficiently available to accommodate the fuel by the date thresholds are mandated, and governments need to have provided sufficient financial investment options available to refiners wishing to provide the fuel need,” he said. Buyout option To protect U.K. airports and businesses from fines imposed for not achieving 10% SAF use by 2030, the legislation proposes a buyout program. “A buyout mechanism will be included for both the main obligation and the [power-to-liquid] obligation, which will provide a method of compliance where suppliers are unable to secure a supply of SAF,” the proposal stated. “The buyout prices will be set at the equivalent of 4.70 euros [$5.04 per liter] and 5.00 euros [$5.36] per liter for the main and [power-to-liquid] obligations, respectively.” These buyout prices are significant incentives to supply SAF to the U.K. market, according to the proposal. “We will monitor developments in SAF technologies and feedstocks and, noting developments in the EU, keep under review whether we need to broaden the list of eligible fuel types and feedstocks,” the proposal stated. “As electrification scales up in the road transport sector, more feedstocks will be available that could be used for SAF.” The country’s SAF legislation is expected to go before Parliament on Jan. 1, 2025. Editor’s note: All amounts have been converted to U.S. dollars.

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