UK SAF mandate signed into law

The UK SAF mandate has been signed into law and will become effective from New Year’s Day.
The SAF mandate will start at 2% of total UK jet fuel demand, increase on a linear basis to 10% in 2030 and then to 22% in 2040.
From 2040, the obligation will remain at 22% until there is greater certainty regarding SAF supply.
The mandate will encourage the innovation of advanced fuels that can generate greater emission reductions and the diversification of feedstocks to reduce dependencies on scarce resources, by including in the mandate:
• A cap on the feedstocks used in the hydroprocessed esters and fatty acids (HEFA) process, but not until other types of SAF are also commercially viable to recognise the important part that HEFA SAF will play in the 2020s. HEFA supply will not be limited under the mandate for the first 2 years, fall to 71% in 2030 and still contribute 35% in 2040.
• A separate obligation on power to liquid fuels from 2028 that reaches 3.5% of total jet fuel demand in 2040.
The mandate will include a buy-out mechanism for both the main and power to liquid obligations to incentivise supply while protecting consumers where suppliers are unable to secure a supply of SAF.
These will be set at £4.70 (€5.60) and £5 (€6) per litre of fuel, respectively. These provide a significant incentive for fuel suppliers to supply SAF into the market rather than pay the buy-out. They also set a maximum price for the scheme, and therefore deliver emission reductions at an acceptable cost.
The plan includes a review mechanism to help minimise the impact on ticket fares for passengers.
We will also work closely across government on feedstock availability to ensure that feedstocks are used in a sustainable and productive way.