A bill to formally adopt a revenue certainty mechanism to support the production of sustainable aviation fuel (SAF) was introduced in the U.K. Parliament on May 14. The proposed scheme is in the form of a guaranteed strike price (GSP), a mechanism designed to ensure SAF producers receive a fixed price per unit of fuel.&nbsp;The bill would fund the revenue certainty mechanism via a levy of suppliers of aviation fuel to the U.K. Once finalized, the revenue certainty mechanism is expected to help attract investment in new SAF projects by helping to reduce risk. &nbsp;Introduction of the legislation follows a <a href="https://biomassmagazine.com/articles/uk-launches-public-consultation-on-saf-revenue-support-scheme">public consultation</a> on options for the revenue certainty mechanism launched by the U.K. government in March.&nbsp;“The new financial mechanism is another display that the&nbsp;U.K.&nbsp;is rock solid in its commitment to building a prosperous hub for homegrown sustainable fuel production,” said the U.K. Department of Transport in a statement. “Furthermore, this vital update provides&nbsp;SAF&nbsp;producers and the industry at large the confidence and stability to plough investment into clean energy.”The department on May 14 also announced the U.K. government will allocate an additional £400,000 in funding to support the testing and qualification of green fuels, helping to get them to market more quickly.&nbsp;Both the revenue certainty scheme and additional funding aim to support the U.K.’s SAF mandate<a href="https://biomassmagazine.com/articles/uk-saf-mandate-comes-into-force">, which came into force earlier this year</a>. By law, SAF must now account for at least 2% of all jet fuel in flights taking off from the U.K. The mandate is set to expand to 10% in 2030 and 22% in 2040.

2025-05-20 - UK Parliament considers bill to create revenue certainty mechanism for SAF (4 publications)

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A bill to formally adopt a revenue certainty mechanism to support the production of SAF was introduced in the U.K. Parliament on May 14. The proposed scheme is in the form of a guaranteed strike price.

UK Parliament considers bill to create revenue certainty mechanism for SAF

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