UK introduces legislation to boost domestic SAF production

The UK government has introduced new legislation aimed at accelerating the development of sustainable aviation fuel (SAF) within the country.
Presented in Parliament, the Sustainable Aviation Fuel Bill outlines a framework to implement a revenue certainty mechanism (RCM) that will guarantee a set price for eligible SAF sold over a fixed period.
This initiative is designed to reduce financial risks for producers and unlock investment in the UK’s first commercial-scale SAF facilities.
Under the proposed legislation, a government-appointed entity will be authorised to enter into private contracts with SAF producers.
The Bill also allows for the creation of a levy on aviation fuel suppliers operating in the UK to fund the scheme’s payment commitments and administration costs.
While SAF suppliers are already required to meet increasing targets under a mandate that began in January, the RCM is seen as a crucial step in encouraging final investment decisions by providing long-term price stability.
In addition, the government has announced an extra £400,000 (€475,000) in funding to support the testing and qualification of SAF technologies.
“This legislation supports our SAF mandate, which requires at least 10% of jet fuel used on UK-departing flights to come from sustainable sources by 2030, increasing to 22% by 2040,” said the Department for Transport (DfT).
“The financial mechanism is a clear signal of our commitment to fostering a thriving domestic SAF industry. It provides the certainty and confidence producers need to invest in clean energy.”
According to the government, three major barriers currently hinder SAF projects from reaching final investment decisions in the UK - the absence of a transparent market price for advanced non-HEFA SAF, regulatory uncertainty, and stiff competition for investment from other emerging low-carbon technologies both domestically and abroad.
To address these issues, the RCM will operate using a guaranteed strike price model—similar to the UK’s Contracts for Difference scheme used in the renewable electricity sector.
The first round of contracts will focus on SAF projects utilising non-HEFA technologies and feedstocks.