UK government to set up SAF revenue certainty mechanism  

British Airways // Nova Pangaea SAF plant

The UK government is launching a new consultation to set up a ‘revenue certainty mechanism’ designed to stimulate sustainable aviation fuel (SAF) plant production. 

This initiative, an amendment to the Energy Bill, will enter its consultation stage in Q3 2023.  

The aim of this program is to lower the risk of new sustainable aviation fuel production projects in the UK by guaranteeing investors in new SAF projects a degree of predictability. 

Once the consultation stage is completed by the end of Q2 2024, its responses will be analyzed and a government response formulated within six to 12 months, with a view to drafting new legislation in this field. 

Altogether, and subject to Parliamentary approval, the revenue certainty mechanism is expected to be in place by the end of 2026. 

This is one of the measures that HM Government is undertaking in order to stimulate the development of the SAF industry in the UK. Other initiatives include setting a 10% SAF blending mandate by 2030 and the provision of £165 million in funding to support the development of new SAF production plants through an Advanced Fuels Fund. 

There are currently five SAF plant projects in the UK, expected to be at different stages of construction by 2025. 

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