Velocys welcomes UK government’s SAF policy update
Velocys believes this will help to support the further development of its UK reference project, Altalto Immingham and other UK pipeline opportunities, building on the recent UK government grants awarded from the Advanced Fuel Fund.
The Government has confirmed its desire to establish the UK as a global leader in the development, production and use of SAF by creating secure and growing SAF demand, kickstarting a domestic SAF industry and working in partnership with industry and investors to build long term supply.
The consultation on March 30 comes amid growing support for decarbonisation and further supports the UK Government’s ambition of reaching net-zero by 2050 and its Jet Zero strategy.
The gasification plus Fischer Tropsch (FT) process has been identified as the main pathway to sustain SAF uptake to 2030 and beyond.
Velocys’ patented FT process is well positioned to fulfil this demand.
Henrik Wareborn, CEO, said: “Velocys’ technology is immediately ready to support commercial scale production of SAF with ultra-low carbon intensity and input from a range of feedstocks.
“There is a clear groundswell of legislative and policy support for the use of sustainable aviation fuel with the Inflation Reduction Act in the US, the ReFuelEU initiative in Europe and now today’s news from the UK. This level of government support is critical, so that industry and policy can work in parallel and at speed to reduce emissions.
“There is still a need for a clear mechanism to ensure price stability for SAF, but the proposed mandate is an important step in the right direction. “Today’s news further underpins the investment case for our Altalto reference project in Immingham. The project will put the UK firmly at the forefront of the global move to decarbonise the aviation sector.”