On July 22, the U.K. Department for Transport issued a written statement to Parliament confirming its intention to introduce a Sustainable Aviation Fuel (SAF) mandate effective from January 1, 2025, pending Parliamentary approval.
The SAF mandate will be phased in, starting at 2% in 2025 and increasing linearly to 10% by 2030, with further increases to 22% by 2040. Initially, regulations implementing the SAF mandate will impose a cap on feedstocks used in the hydroprocessed esters and fatty acids (HEFA) process, which will not affect HEFA supply during the first two years, until other SAF types become commercially viable. The HEFA feedstock cap is anticipated to be set at 71% by 2030 and 35% by 2040.
Additionally, the mandate will include a separate obligation for power-to-liquid fuels, commencing in 2028 and reaching 3.5% of total jet fuel demand by 2040.
The Department for Transport plans to incorporate a buy-out mechanism for both the main SAF and power-to-liquid obligations, designed to encourage supply while safeguarding consumers in cases where suppliers are unable to secure sufficient SAF. These buy-out prices are set at £4.70 per liter for main SAF and £5.00 per liter for power-to-liquid fuels.
