Sustainable Aviation Fuel Bill

Luke Myer Excerpts

2nd reading
Wednesday 11th June 2025 Commons Chamber

[Luke Myer (Middlesbrough South and East Cleveland) (Lab)]

I welcome the Bill, particularly the introduction of the revenue certainty mechanism, which is not only a sensible intervention but a timely one. It gives investors clarity, it gives producers confidence and it gives communities such as mine a sense that this transition will bring jobs rather than take them away. I thank Ministers for listening not only to the sector but to those of us who represent Teesside.

In our region, we have a number of producers with an interest in scaling up SAF production—principally Alfanar, which has already invested £2.5 billion in our region and wants to go much further by building a brand-new plant that will create 2,300 construction jobs and 300 permanent jobs. Alfanar is not alone, however; we also have Iogen, Willis, Nova Pangaea, Abundia, Arcadia and many active producers or others looking to scale up—serious players with serious plans. I spoke to one earlier this week; it said that the Bill is exactly what the industry is looking for.

May I put just a couple of questions to the Minister? What those producers need now is confidence that enabling work for final investment decisions can begin, ideally before the Bill completes its full legislative journey. Of course, there is a precedent for that in the Energy Act 2023. What engagement will the Minister have with the Department for Energy Security and Net Zero on the carbon capture track project. I know that a number of the producers are keen to benefit from track 1 expansion, so producing those two things in train seems like a sensible thing to do, and I hope that there is cross-departmental engagement.

Ultimately, I thank the Government and urge them to move at pace to deliver the jobs that we want for the industry in our region. I want to ensure that young people watching from working-class communities across Teesside know that these are not abstract opportunities that are distant from them, but opportunities for them that they can get into—like our expansion in skills training. This sector can be transformative for the Tees valley region—not only for Middlesbrough but for Redcar and Cleveland, Stockton, Darlington and Hartlepool. Our area suffered industrial decline for many decades, but now we are seeing new life and new industry. Finally, Teesside is taking off.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Chris McDonald for the final Back-Bench contribution.

--- Later in debate ---

[Mike Kane]

I am always delighted to answer questions from the hon. Gentleman, who represents a place that I love dearly. I have responsibility for maritime travel, and we see Artemis Technologies decarbonising our maritime sector. We have refineries in Belfast. I spoke to a major chief executive whose family emigrated to Canada from Belfast and who is very fond of the city. We expect him to talk to his companies about applying for the contracts when we eventually let them do so, and that will be key.

I have a lot of questions to get through. The £1.50 that the hon. Member for Orpington (Gareth Bacon) mentioned could be £1.50 more or £1.50 less, but I am happy to hand over £1.50 to him now, if he wishes. That is not going to have an impact on people’s ability to fly to destinations, as he rightly said. I think people flying for their annual holiday is key to the British way of life, and I do not want to damage that whatsoever. That analysis comes from Department for Transport business team itself.

Many of the questions were about going faster. I must gently point out that we were promised four plants by 2025 by the last Government, but I am not going to get into that. We could not go any faster—this is still the first Session—and we had to introduce the mandate and we are now introducing part 2, which is the RCM. So I would say we are going at as fast a pace as humanly possible.

We are neutral on when the contracts are bid for, so I say to those worried about waste or HEFA streams that these contracts change over time, and we will see what bids come in. The hon. Member for Orpington also mentioned large plants, and he will have seen Members—mainly those Government Members behind me—from our industrial north, south Wales and other places queuing up to get advanced, high-manufacturing facilities with well-paid, trade-unionised jobs. As we advance this, we are working with the industry on the strike price.

The Chair of the Transport Committee, my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury), said this is not a silver bullet, and it is not, but it is part of the package—airspace modernisation, sustainable aviation fuels, carbon pricing, carbon capture technology and zero emission flight—that this Government are pursuing to decarbonise aviation in our country, and we are investing £1 billion in the Aerospace Technology Institute to do that.

My hon. Friend also mentioned Heathrow, and my right hon. Friend the Secretary of State, who has shown great leadership in this space—along with other Members, officials and the industry—has pointed out that the expansion of Heathrow is accounted for in the sixth carbon budget. I thank the hon. Member for Wimbledon (Mr Kohler) for his thanks to me for getting on with what is part of a package of decarbonisation, as he rightly pointed out.

My hon. Friend the Member for North Somerset (Sadik Al-Hassan) is a doughty champion for Bristol airport—he mentions it every time I meet him in the Tea Room—and a champion for hydrogen. I look forward to visiting his airport and to replying to his Westminster Hall debate on Tuesday.

The hon. Member for Mid Bedfordshire (Blake Stephenson) takes any opportunity he has to plug the Universal theme park. He spoke about his support for Luton airport, and how it will be a gateway for regeneration in his area. On how the approach differs from those of other markets, we are the first ones to do it. If we get this done in the next few weeks, we will be the only legislature on the planet to have done so, and the world is looking to us to move this forward.

Coming to my hon. Friend the Member for Derby South (Baggy Shanker), there was a bit of an arms race between Members, if they do not mind my saying so, about who loves their airport the most—Teesside, Norwich, East Midlands and on it went. I think we should have an independent competition for who loves their airport—

[Luke Myer]

rose—

[Mike Kane]

I think the hon. Member representing Teesside is about to intervene on me.

[Luke Myer]

Does the Minister agree with me that Teesside International airport is a real gem in our region, and it is absolutely critical that it returns to profitability as soon as possible?

[Mike Kane]

How could I not agree with my hon. Friend. We are proud of our airports—I am proud of mine in my constituency—which provide jobs and services. As everybody has said, they have a great history and provide great innovation, and we should celebrate them.