Aviation: Fuels

Treasury written question – answered at on 24 April 2023.

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Photo of Graham Brady Graham Brady Chair, Conservative Party 1922 Committee

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of introducing a price stability mechanism, such as a contracts-for-difference scheme similar to that used in wind power generation, to encourage the production of sustainable aviation fuel production in the UK.

Photo of Graham Brady Graham Brady Chair, Conservative Party 1922 Committee

To ask the Chancellor of the Exchequer, if his Department will make an assessment of the potential value of the sustainable aviation fuel sector to the UK economy.

Photo of James Cartlidge James Cartlidge The Minister of State, Ministry of Defence

The government is committed to supporting the uptake of Sustainable Aviation Fuels (SAF). The UK’s SAF programme is one of the most comprehensive in the world, that includes the £180 million Advanced Fuels Fund and an ambitious SAF mandate which other low carbon technologies do not have.

On 17 April, we published a government response to an independent report on a UK SAF industry. It sets out how we are already taking action to address many of the report’s recommendations. We have committed to continue working with industry to consider the case for broader support alongside the AFF and the SAF mandate from 2025 (that will provide a long-term investment signal and price support), with a focus on industry funded intervention, to increase revenue certainty for UK SAF plants. If required following that work, we will launch a formal consultation this summer.

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