Sustainable Aviation Fuel Bill

Euan Stainbank Excerpts

2nd reading
Wednesday 11th June 2025 Commons Chamber

[Euan Stainbank (Falkirk) (Lab)]

I welcome this tremendous legislation, which comes not a minute too soon after the previous Government self-admittedly sat on their hands. The Bill will enable the essential move to the production of British sustainable aviation fuel, and I put on the record my thanks to the ministerial team and officials for bringing the Bill forward and for their answers to my extensive written questions.

Unless it is the will of the House to cry for the end of aviation as a practice, it is imperative that we back the sustainable use of biofuels, municipal waste, cover crops, ethanol, and even carbon dioxide straight out of the atmosphere, for aviation fuel. The mandate provides a modest progression for the aviation industry towards incorporating this fuel into its mix. We have genuinely world-leading research and development on Teesside, such as through Project Speedbird and Lighthouse Green Fuels. The green shoots of industry there must be supported by Government to enable their outcomes.

Both airlines and airports recognise the environmental and economic imperative of building a domestic SAF market. They understand that relying on imports to meet the mandate increases costs and introduces risk to our energy security, aviation resilience and national competitiveness, and there is the geopolitical risk of exposing ourselves to a cheap Chinese market. We shamefully saw the previous Government be willing to do that, as exposed by the hundreds of jobs now on the line at Alexander Dennis in my constituency due to aggressive state-subsidised Chinese industrial practices capturing an incrementally increasing share of the British bus manufacturing market. It is also in no small part thanks to the SNP Government recently buying four times as many Chinese buses as buses from Scotland, but I digress.

There is credible investment interest from traditional jet fuel producers and aviation operators, which have shown their willingness to put capital behind UK SAF projects. That investment is waiting for the RCM to be put in place, for private law contracts with manufacturers to be agreed, and for the industry to have complete certainty in investing in what is a nascent and uncertain technology.

The Bill must pass through the House as quickly as possible. One of the places that cannot afford to wait for investment is Grangemouth. The closure of the Grangemouth refinery has marked the end of over a century of oil refining on Falkirk’s doorstep, and jobs in the wider supply chain are at risk daily due to the loss of the economic anchor that the refinery provided the community. Petroineos’ conversion of the refinery into an import terminal compounds the concerns within the community that we will be reliant on cheap Chinese imports instead of growing our own SAF.

Grangemouth has the infrastructure, skills, logistics and the will to be a cornerstone of our domestic SAF industry and strategy in Scotland and across the United Kingdom, and it already has a commitment from the Government of £200 million from the national wealth fund. Organisations such as Scottish Enterprise and the team around Project Willow are already assessing investable proposals centred on SAF in Grangemouth. However, the dates for commencement of operations suggested in the report are still far too remote from the practical reality of workers who need to feed their kids and pay their mortgage.

With strategic support and the wise and expedient deployment of the £200 million dedicated by this UK Labour Government to Grangemouth, I firmly believe that we can rapidly transition Grangemouth from aviation fuel to SAF, serving as a model of industrial renewal. There are implications for fuel security in Scotland, for jobs in my constituency and the cost of heating and industrial fuel across the country. We cannot allow this to become another missed opportunity. For Grangemouth to have a chance of succeeding, we need acceleration.

With that in mind, I would like the Minister to answer the following questions. Considering that industry is raising concerns that we may have to wait up to nine months between the commencement of this legislation in quarter 4 of 2026 and the first private law contract being confirmed, what work can be done prior to the introduction of this legislation to bring the first of the contracts into effect as soon as humanly possible? How does the Bill intersect with Project Willow proposals for SAF at Grangemouth? Does the Minister understand the need to back and deliver that at pace? Would he like to touch on how the Project Willow report recommends delaying the HEFA cap? Does he consider the use of waste feedstocks for sustainable aviation fuel to be dirtier, cleaner or the same as waste incineration? What conversations has he had with colleagues at the Department for Environment, Food and Rural Affairs regarding the waste hierarchy implications?

In summary, we need the RCM rapidly, and we need to develop the industry at scale, and affordably. I hope that we can genuinely back British SAF, safeguard fuel security, protect skilled jobs and anchor the energy transition in communities such as Grangemouth, Teesside and all across the United Kingdom.