🕒 Article read time: 2 minutes
Logistics UK responds to government's plans to introduce Sustainable Aviation Fuel Bill
This Bill will support sustainable aviation fuel (SAF) production in the UK by introducing a revenue certainty mechanism to encourage investment in the construction of SAF plants across the UK.
SAF is one of the keyways to decarbonise air travel and this legislation proposal is aimed at helping to drive the government's pledge to kickstart economic growth and make Britain a clean energy superpower, delivering the government’s manifesto commitment to secure the UK aviation industry's long-term future, including through promoting SAF.
This Bill will support SAF production in the UK by providing revenue certainty to encourage investment in the construction of SAF plants across the UK.
Sustainable aviation fuel production is estimated to add over £1.8 billion to the economy and could support over 10,000 jobs across the country while supporting decarbonisation, building on the SAF mandate, which will create demand for SAF by setting targets on fuel suppliers to use a proportion of SAF.
The proposed legislation is something Logistics UK has been pushing for, and Ellis Shelton, Senior Policy Advisor, Logistics UK said: "It is encouraging to see the government reaffirm its commitment to SAF as the principal immediate path to decarbonise aviation.
"Delivering the revenue certainty mechanism at pace is now the critical next step to attract the investment required to kickstart SAF production in the UK.
"Decisive government action will ensure the whole country benefits from the green jobs and growth that SAF brings."
SAF can be used in existing aircraft, and it emits on average 70% fewer greenhouse gas emissions than using fossil jet fuel on a life cycle basis. The introduction of a SAF mandate is set to start from 1 January 2025 at 2% of total UK jet fuel demand, increasing on a linear basis to 10% in 2030 and then to 22% in 2040.
The SAF mandate will deliver emission reductions up to 2.7 MtCO2e in 2030 and up to 6.3 MtCO2e 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, by including in the mandate:
- Hydroprocessed esters and fatty acids (HEFA) supply will not be limited under the mandate for the first two 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 and £5.00 per litre of fuel. These prices 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.
Published On: 25/07/2024 13:26:30
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News In Brief
FedEx trialling Mercedes-Benz eActros 300 tractor
FedEx has launched a two-week pilot of a Mercedes-Benz eActros 300 tractor which is being used in place of a diesel equivalent on domestic linehaul operations from its Parkhouse hub in Stoke-on-Trent.
This latest trial follows a two-week pilot of a rigid eActros 300 in Eindhoven in the Netherlands in May this year, which has prompted the UK trial.
During the pilot period, the tractor will be paired with an existing FedEx-owned trailer. It will transport shipments collected from larger customers on to FedEx hubs elsewhere in the UK.
The tractor will recharge onsite at the Parkhouse hub during down time, using a 40kW temporary charging solution.
Louise Whitehouse, FedEx Europe MD for fleet maintenance, said: “Taking opportunities to test a variety of solutions in different geographical and operational circumstances is a critical part of evaluating solutions as they emerge on the market.
"This two-week test presents an opportunity to gain welcome hands-on experience using new technologies in heavier vehicle types and build a better picture of how such a vehicle and solution could be applied in linehaul operations in Europe.”
Denise Beedell, Senior Policy Manager, Logistics UK said: “Our members are committed to making the transition to zero emission vehicles.
"Fleet operators face many challenges in meeting decarbonisation deadlines and it is very encouraging to see a logistics giant like FedEx trialling new technologies in heavier vehicles to understand what will work best as FedEx transitions its fleet towards net zero.”
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