The United Kingdom 🇬🇧 has taken a major step forward in its efforts to cut carbon emissions from aviation and support green jobs. As of July 22, 2025, the government has awarded £63 million to 17 UK companies to speed up the production and use of Sustainable Aviation Fuel (SAF). This move is part of a much larger plan to make the UK a world leader in clean aviation and to meet tough climate targets. The funding comes from the Advanced Fuels Fund (AFF), which has now given out a total of £198 million to help scale up green aviation technology.
This update explains what has changed, who is affected, when the changes take effect, what actions are required, and what these changes mean for companies, workers, investors, and travelers. It also covers the new laws and rules, the role of key people like Aviation Minister Mike Kane, and what to expect in the coming years.
Summary of What Changed
- The UK government has awarded £63 million to 17 companies to boost SAF production.
- The funding is part of the Advanced Fuels Fund, which now totals £198 million.
- A new SAF Mandate became law on January 1, 2025, requiring a minimum share of SAF in all UK jet fuel.
- The Sustainable Aviation Fuel Bill 2024-25 was introduced to give more price certainty to SAF producers and attract more investment.
- These changes support about 1,400 jobs and could add up to £5 billion to the UK economy by 2050.
Who Is Affected
- Fuel suppliers who provide aviation fuel in the UK 🇬🇧.
- Airlines operating flights from UK airports.
- Investors in green aviation technology.
- Workers in the aviation and fuel production sectors.
- Travelers, as changes may affect ticket prices and flight options.
- Research and academic centers like the University of Sheffield’s Energy Innovation Centre.
Effective Dates
- January 1, 2025: The SAF Mandate became law, setting minimum SAF requirements for jet fuel.
- May 14, 2025: The Sustainable Aviation Fuel Bill was introduced in Parliament.
- By end of 2026: All supporting laws and regulations for SAF revenue certainty are expected to be in place.
Required Actions
- Fuel suppliers must register with the Department for Transport if they supply 15.9 terajoules (about 468,000 litres) or more of aviation fuel per year. They must prove they are meeting SAF requirements and submit evidence for verification.
- Airlines need to work with suppliers to ensure their fuel mix meets the new SAF rules and plan for possible changes in costs.
- Investors should watch for new opportunities as the government provides more price certainty and support for advanced fuels.
- Companies receiving funding must use it to build or expand SAF production, create jobs, and help the UK meet its climate goals.
Details of the £63 Million SAF Funding
The latest round of funding supports 17 UK companies, including:
- OXCCU Tech: Building a SAF demonstration plant at Oxford Airport.
- LanzaJet: Working with British Airways on Project Speedbird in South Wales.
The main goals are to:
- Speed up the production of sustainable aviation fuel.
- Create skilled jobs in the UK.
- Help the UK become a global hub for SAF.
Economic and Environmental Impact
- Job Creation: The funding supports about 1,400 jobs in the UK.
- Economic Growth: SAF production could add up to £5 billion to the UK economy by 2050.
- Climate Benefits: SAF can cut greenhouse gas emissions by up to 70% compared to regular jet fuel.
Strategic Context
This funding is part of the UK’s wider “Plan for Change,” which aims to:
- Expand airports in a green way.
- Make the UK a leader in clean energy.
- Support the country’s goal to become a “clean energy superpower.”
Policy and Regulatory Changes
SAF Mandate (Effective January 1, 2025)
The Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024 came into force on January 1, 2025. This law sets clear targets for the use of SAF in UK aviation:
- 2025: At least 2% of all UK jet fuel must be SAF (about 230,000 tonnes).
- 2030: The target rises to 10%.
- 2040: The target increases to 22%.
How Compliance Works
- Suppliers must provide proof of SAF supply to the Department for Transport.
- They can earn tradeable certificates based on how much they cut greenhouse gas emissions.
- If suppliers cannot meet their SAF targets, they can pay a “buy-out” price instead:
- £4.70 per litre for the main SAF obligation.
- £5.00 per litre for power-to-liquid (PtL) fuels (starting in 2028).
Feedstock Caps
To encourage a mix of different SAF sources:
- HEFA SAF (made from fats and oils) can make up 100% of the SAF blend for the first two years.
- By 2030, HEFA is capped at 71% of the blend.
- By 2040, the cap drops to 35%.
This pushes the industry to develop new types of SAF, not just rely on fats and oils.
Sustainable Aviation Fuel Bill 2024-25
Introduced on May 14, 2025, this bill aims to make investing in SAF more attractive by reducing financial risks for producers.
Key Features:
- Revenue Certainty Mechanism: The government will set a “strike price” for SAF, similar to how it supports renewable electricity. This guarantees a fixed price for SAF producers, making it easier for them to plan and invest.
- Funding: The scheme will be paid for by a levy on aviation fuel suppliers. Some costs may be passed on to airlines or passengers.
- Timeline: The government wants all laws and rules in place by the end of 2026.
Stakeholder Perspectives
Government
Aviation Minister Mike Kane has highlighted the twin goals of growing the economy and leading on climate action. He points to job creation, energy independence, and the UK’s chance to set the pace in green aviation.
Industry
Companies like OXCCU Tech and LanzaJet say government support is key to scaling up SAF technology and making it cheaper. They welcome the new funding and the push for more advanced fuels.
Academia
The University of Sheffield’s Energy Innovation Centre is at the heart of SAF research. It has received direct funding and is recognized for its leadership in developing new fuels.
Parliament
Lawmakers see the new SAF Bill as a way to give investors more confidence and provide clear rules for the industry. This is important because building SAF plants is expensive, and investors want to know they will get a fair return.
Practical Implications
For Fuel Suppliers
- Must register under the SAF Mandate if supplying 15.9 terajoules (about 468,000 litres) or more of aviation fuel per year.
- Must submit evidence of SAF supply and have it independently checked.
- Can earn certificates for cutting greenhouse gas emissions, which can be traded.
For Airlines
- The SAF Mandate works alongside the UK Emissions Trading Scheme (ETS), which could affect ticket prices and how airlines plan their fuel use.
- Airlines may need to work more closely with suppliers to make sure they meet SAF targets.
For Investors
- The new revenue certainty mechanism and the SAF Bill are designed to make investing in SAF production less risky, especially for advanced fuels that are not made from fats and oils.
- Investors should watch for new contract rounds and government support as the laws are finalized by 2026.
For Workers and Local Communities
- The funding supports about 1,400 jobs in the UK, many in high-skill areas like engineering and science.
- Local economies near SAF plants and research centers are likely to benefit from new investment and job opportunities.
For Travelers
- The cost of SAF is higher than regular jet fuel, so there may be some impact on ticket prices in the future.
- However, the government is reviewing the SAF Mandate’s impact on fares and is working with stakeholders to manage costs.
Implications for Pending Applications
- Companies and investors who have applied for SAF funding or are planning new projects should make sure they understand the new rules and deadlines.
- The government is expected to issue the first revenue certainty contracts for advanced SAF in rounds, with all supporting laws in place by the end of 2026.
- Ongoing engagement with the Department for Transport and the new “SAF Clearing House” will be important for technical support and guidance.
Future Outlook
- The UK aims to stay competitive with the EU’s ReFuelEU SAF mandate and US SAF incentives, both of which are pushing global demand for sustainable aviation fuel.
- The government is reviewing the SAF Mandate’s impact on ticket prices and the sustainability of different feedstocks (the raw materials used to make SAF).
- Ongoing stakeholder engagement and technical support will be provided through the new “SAF Clearing House.”
Next Steps and Practical Guidance
If you are a fuel supplier:
- Register with the Department for Transport if you supply 15.9 terajoules or more of aviation fuel per year.
- Prepare documentation to prove your SAF supply and emissions reductions.
- Monitor updates on the SAF Mandate and the Sustainable Aviation Fuel Bill for new requirements and deadlines.
If you are an airline:
- Work with suppliers to ensure your fuel mix meets SAF requirements.
- Plan for potential changes in fuel costs and ticket pricing.
- Stay informed about how the SAF Mandate interacts with the UK Emissions Trading Scheme.
If you are an investor or company:
- Watch for new contract rounds and government support as the revenue certainty mechanism is put in place.
- Engage with the Department for Transport and the SAF Clearing House for technical support and guidance.
If you are a worker or community member:
- Look for job opportunities in SAF production, research, and related fields.
- Stay informed about local projects and investments supported by the Advanced Fuels Fund.
Official Resources
- For full guidance on the SAF Mandate, registration, and compliance, visit the UK government’s SAF Mandate Collection.
- For updates on the Sustainable Aviation Fuel Bill and related parliamentary briefings, see the UK Parliament Research Briefings.
- To join the Department for Transport’s Low Carbon Fuels Mailing List, email: [email protected].
Conclusion
The UK’s latest funding and new laws mark a turning point for green aviation. By supporting sustainable aviation fuel through the Advanced Fuels Fund, setting clear targets with the SAF Mandate, and introducing the Sustainable Aviation Fuel Bill, the government is making it easier for companies to invest in clean fuels and for the country to cut emissions. As reported by VisaVerge.com, these steps are expected to create jobs, boost the economy, and help the UK 🇬🇧 lead the way in sustainable flight.
For everyone involved—from fuel suppliers and airlines to investors, workers, and travelers—the next few years will bring new rules, opportunities, and challenges. Staying informed and prepared will be key to making the most of this green transition in UK aviation.
Learn Today
Sustainable Aviation Fuel (SAF) → Fuel produced from renewable sources to reduce aviation greenhouse gas emissions compared to conventional jet fuel.
Advanced Fuels Fund (AFF) → UK government fund supporting development and scaling of low-carbon aviation fuel technologies.
SAF Mandate → Legal requirement for UK aviation fuel to contain minimum percentages of sustainable aviation fuel annually.
Revenue Certainty Mechanism → Government policy guaranteeing fixed prices to SAF producers, reducing investment risks.
HEFA SAF → A type of sustainable fuel made from hydroprocessed esters and fatty acids, initially allowed as 100% SAF blend.
This Article in a Nutshell
The UK invests £63 million in 17 firms to boost sustainable aviation fuel production, supporting 1,400 jobs and helping meet climate targets with new SAF laws and funding under the Advanced Fuels Fund, advancing green aviation leadership and reducing emissions by up to 70%.
— By VisaVerge.com
