GovWire

Consultation outcome: Sustainable aviation fuels revenue certainty mechanism: revenue certainty options

Department For Transport

January 29
12:12 2025

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Our consultation detailed the challenge and case for intervention for the sustainable aviation fuel (SAF) industry. It also explained how the UK can capture its share of the global SAF market by playing a lead role in SAF development, production and use.

In our response, we confirm:

  • a guaranteed strike price mechanism will be progressed
  • the first tranche of signed revenue certainty mechanism contracts will be with UK SAF projects that produce using non-HEFA technology and feedstocks
  • the counterparty will need to be a government-backed entity

We have also included a summary of responses from the 74 formal respondents across all areas, including fuel producers, the aviation sector and environmental non-government organisations.


Original consultation

Summary

Seeks views on revenue certainty options to support a sustainable aviation fuels industry in the UK.

This consultation ran from
to

Consultation description

The government is seeking views on the options for a revenue certainty mechanism to support the sustainable aviation fuels (SAF) industry in the UK. This mechanism aims to reduce the risks ofuncertainrevenues for emerging SAF plants, which helps attract investment into UK SAF projects andincreasedomestic SAF productionthat will drive growth andcontribute towards meeting the demand from theSAF mandate.

We will ask for your views on the:

  • reasons for introducing a SAF revenue certainty mechanism
  • our assessment of the shortlisted mechanism options and considerations to how they could be implemented

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