Aviation: Alternative Fuels

(asked on 22nd October 2025) - View Source

Question to the Department for Transport:

To ask His Majesty's Government what incentives are available for UK businesses to produce net-zero air fuel.


Answered by
Lord Hendy of Richmond Hill Portrait
Lord Hendy of Richmond Hill
Minister of State (Department for Transport)
This question was answered on 3rd November 2025

Sustainable aviation fuel (SAF) is one of the key measures required to achieve net zero emissions from aviation by 2050. SAF reduces greenhouse gas (GHG) emissions across its lifecycle production and use when compared to conventional kerosene.

We are encouraging the production, development, and use of SAF in the UK in three main ways:

1) We are building demand through the SAF Mandate, which came into place in January this year and sets targets for the supply of an increasing amount of SAF in the overall UK aviation fuel mix. Under the SAF Mandate, eligible SAF is required to meet a reduction of 40% GHG savings and fuels are rewarded in proportion to their GHG savings.

2) The Advanced Fuels Fund aims to grow the UK supply of SAF by supporting first-of-a-kind SAF production plants through the project pipeline to reach investment ready stage and achieve commercial scale. £63m has been allocated across 17 UK projects for this financial year. The Spending Review 2025 will continue support for the production of SAF in the UK to 2029/30. DfT will provide details on the parameters of this support in due course.

3) We are helping to derisk SAF projects and support investment by legislating to introduce a revenue certainty mechanism. The SAF Bill was introduced at the House of Commons on 14 May 2025 and passed Report Stage and Third Reading on 15 October.

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