Sustainable Aviation Fuel Bill (Second sitting)

Euan Stainbank Excerpts

Committee stage
Tuesday 15th July 2025 Public Bill Committees

[Graeme Downie]

Q This question has come up in some of the other discussions today, but do you think there is enough in the Bill to properly incentivise the move beyond first and second generation SAFs, into what I think some of the witnesses described as the ultimate place we want to end up in—and where there is probably the most opportunity for UK IP, UK innovation and subsequently UK jobs and growth—such that the UK is where SAF happens and is created, as well as where it is developed in future? Do you think there is enough in the Bill for that? How do you see the Bill, and the next steps after that, as making sure that we can really achieve that and ensure that proper added value for the economy, while meeting climate targets?

Mike Kane: First, you are a great champion for Edinburgh airport in your constituency. You know the value of aviation to local communities in particular and you have championed that since you have been here.

Does the Bill give you innovation? I am not sure it does. I think it gives you a platform for what you want to do, in terms of the contracts that we will let going forward, which are about going from HEFA and first generation, to second and third generation. This gives you the substructure to build that capacity for intellectual property, inviting bids for various ways of doing things, and then protecting and supporting that, and bringing new entrants into the market. I think that is what the Bill does.

[Euan Stainbank]

Q We have heard quite a lot about what we can do to enable second-generation fuel from municipal solid waste, large volumes of which are currently going, and have been for a while, to electricity generation through waste incineration. Has the Department held any preliminary discussions with other Departments or external stakeholders about what local authorities need in order to have the confidence to send more of their municipal solid waste to make SAF?

Mike Kane: This will depend, again, on the contracts. I know that you are a neighbour to the Grangemouth refinery, where there could be potential in the future. We know that SAF can be made from a wide range of feedstock, including household waste. The SAF pathways are developing rapidly, and will do even in the weeks and months while the Bill goes through. We just need to make sure that this legislation adapts to the technology and pathways that are coming forward, which will involve further discussions with DBT, other parts of Government and possibly local authorities.

[Euan Stainbank]

Q To follow up on that, the Government have been quite consistent in their response to this question, but I just want to reconfirm: are the Government committed to maintaining their current position on the HEFA cap?

Mike Kane: The requirements to support specific technologies’ feedstock today may be out of date. Again, if we were to pass this legislation and get to Third Reading, that gives us flexibility, as the Secretary of State has ability to change it. If we feel that the HEFA cap needs to change, we will be able to change it. If we want to move up the gradients of the types of SAF that we use, it gives us the ability to do that through the letting of the contracts.