Question to the HM Treasury:

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.

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.