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Foreword
In this month’s foreword we look at policy developments impacting the sustainable aviation fuel (SAF) industry in the UK. His majesty, King Charles has announced that a new bill will be introduced to support domestic SAF production. The newly instated Labour government has verified this through the House of Commons which confirmed that the SAF mandate is expected to come into force on the 1st of January 2025, subject to Parliament’s approval. Once passed, the mandate will aim to increase SAF share to 2% of overall UK jet fuel demand from 2025 The mandate will then increase on a “linear basis” up to 10% in 2030 and then to 22% in 2040. Transport Secretary, Louise Haigh, has stated that from 2040 the mandate “will remain at 22% until there is greater certainty regarding SAF supply”. She also added that the proposed bill would introduce a revenue certainty mechanism (RCM) for alternative aviation fuel producers looking to invest in new UK plants.
Hunton Andrew Kurth, a London-based legal office, suggest that the UK government should learn from the failure of Argent’s biodiesel plant in Motherwell, Scotland. They pinpoint that even in a sector supported by government mandates, other incentives, trade defences and policy measures may be implemented to set the basis for success and allow domestic production to thrive. Furthermore, they advocate that investment in infrastructure, for example CCUS, can ensure that clean fuel producers are able to compete both at domestic and global levels.
Based on the current mandate implementation date, it is likely that the RCM would not be introduced until Q2 – Q4 2026 at the earliest. Sustainable aviation fuel (SAF) producers have urged the new Labour government to speed-up the implementation of RCM and get on with providing revenue support to SAF producers from next year...
Other news this month includes:
Policy
- King’s Speech reveals plan for the introduction of a SAF Bill
- Clean fuels emphasizes need for immediate 45Z guidance in climate smart Ag comments filed with USDA
Markets
- ‘World’s First’ sustainable aviation fuel project to be built at Saltend
- bp to acquire full ownership of bp Bunge Bioenergia while refocusing plans for new biofuels projects
- BP to invest $48.54 million in China biofuels producer as market anticipates SAF mandates soon
Research and Development
- Study finds health risks in switching ships from diesel to ammonia fuel
- University of Nevada, Reno research focuses on use of cactus pear in biofuel production
- Atlantic Biomass gets nearly $200,000 from US DOE for biofuel development
Bioethanol
- British Sugar restarts its CO2 production facility in Norfolk
- Vale, Komatsu and Cummins announce to develop Dual Fuel large trucks, powered by ethanol and diesel
Biodiesel
- Biofuel Bentleys are coming for Britain's green king
- Ukraine is the primary rapeseed supplier to the EU
- More...
Aviation and Shipping Biofuel
- UK SAF Mandate: Fuelling Demand
- Industry Urges Swift UK Government Action to Keep SAF Projects on Track
- More...
Other biofuels
- ST Telemedia deploys renewable hydrotreated vegetable oil in Singapore data centres
Price Information
Events