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Transport Secretary Heidi Alexander announces £63 million for Advanced Fuels Fund
On 29 January Transport Secretary Heidi Alexander announced that the government will invest £63 million over the next year in the Advanced Fuels Fund, supporting sustainable aviation fuel (SAF) producers across the UK, including in areas like Teesside.
The government also published its response to the consultation on a revenue certainty mechanism (RCM), which, once implemented, will encourage investment into the nascent UK SAF industry.
Ms Alexander said that this move underlines the government's commitment to ensuring that the economic benefits of airport expansion are delivered in a way that considers and addresses environmental and social responsibilities.
Earlier this month, the government SAF Mandate became law, requiring 2% of this year’s aviation fuel supply to be from sustainable sources, with the targets reaching 10% in 2030 and 22% in 2040.
SAF is one of the key measures required to reach net zero emissions from aviation by 2050: it reduces GHG emissions by around 70% on average when replacing fossil kerosene (jet fuel).
Alexandra Herdman, Senior Policy Manager, Logistics UK, said: "The government's £63 million investment in the Advanced Fuels Fund, coupled with the newly implemented SAF Mandate, marks a significant step toward decarbonising the UK's aviation sector.
“This investment is a crucial step towards scaling up the UK’s SAF industry, supporting innovation, job creation and emissions reduction across the sector.
“The introduction of the SAF Mandate and progress on the Revenue Certainty Mechanism RCM will provide much-needed confidence for industry and investors and will help to attract the necessary private investment to scale up domestic SAF production.
“If the aviation sector is to dramatically reduce its carbon emissions, the UK must position itself as a SAF exporter and not a SAF importer."
Published On: 03/03/2025 12:22:55
