Sustainable Aviation Fuel Bill

Melanie Onn Excerpts

Tuesday 3rd March 2026 Commons Chamber

As I said on Second Reading, this is tremendous legislation, and I welcome the Minister getting it over the line. While the industry’s view is that the previous Government left this on the shelf for too long, with a year between the announcement and the initial consultation, and while many on the Opposition Benches continue to provide abstract musings about the future of this critical sector or fret about negligible impacts on short-term ticket prices, it is to the immense credit of the Department and Ministers that the Government have got on and delivered this Bill, which backs British jobs and British industry and secures the sustainable future of the great British holiday.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

I am pleased to support the Sustainable Aviation Fuel Bill and the Lords amendments. The Bill is about backing a world-class aviation sector and supporting its growth in a way that meets our decarbonisation responsibilities. The fact that SAF could contribute to the 65% reduction in emissions needed by aviation to meet net zero by 2050 is a useful reminder that technological development can ensure a future for higher carbon emitters while improving our environment. That is policy in action, and it will reduce disruption to consumers—something that we also have to bear in mind.

SAF matters not just for its decarbonisation credentials, but for its clear potential to support job creation and economic growth. As my hon. Friend the Member for Doncaster East and the Isle of Axholme (Lee Pitcher) said, it will bring into existence a circular economy, including flooding alleviation and the development of feedstocks. That would perhaps alleviate some of the concerns raised by my hon. Friend the Member for Chesterfield (Mr Perkins) about the source of feedstocks.

Increasing home-grown SAF production can position the UK as a leading destination in this new market. Low-carbon fuels can support up to 15,000 jobs and contribute up to £5 billion to the economy by 2050. That is not an abstract prospect for those of us who represent communities built on industry and energy. In northern Lincolnshire, we already see what that can mean. Phillips 66’s Humber refinery in Immingham—in my neighbouring constituency—is the UK’s first and largest commercial scale producer of SAF. I was pleased to discuss the potential for the expansion of SAF operations with P66, especially given its recent acquisition of the Lindsey oil refinery site, which has a uniquely placed direct pipeline to London Heathrow.

It is of the utmost importance that UK refineries such as P66’s Humber refinery play a crucial role in the transition to and upscaling of cleaner fuel sources. That would retain the domestic skills base and supply chains that communities such as mine depend on. That is why I particularly welcome Lords amendments 1 to 3, which will ensure that the Secretary of State can enter revenue certainty contracts only where the supported SAF is produced in the UK. That is a crucial step in protecting domestic industrial growth. Given recent global events that other colleagues have referred to, the amendments present straightforward, sensible safeguards that help the UK to build fuel capability and resilience in an ever volatile global fuel supply chain.

For SAF to be a success, and as we build the market, we must get the wider policy framework right, including carbon pricing and the UK emissions trading scheme. The ETS can support sustainable aviation fuel investment, but it needs to be negotiated with care so that British industry has the clarity and confidence it needs to invest for the long term. It must not face uncertainty or any unintended disadvantages.

I support the Bill and welcome the Lords amendments. I look forward to working with the Government to strengthen the link between ambition and real industrial opportunity here at home, creating jobs and career opportunities in communities such as Great Grimsby and Cleethorpes.

[Tom Collins (Worcester) (Lab)]

A few of my colleagues have been offering jokes. I was not able to prepare detailed remarks, so I hope they will forgive me if I just wing it. [Laughter.]

Although we have discussed decarbonisation a number of times in this debate, it has not been said yet that the Bill is about addressing the climate crisis. That incredibly important and urgent piece of work demands the utmost urgency and ambition. For that reason, I naturally support it and what it is trying to achieve. Similar mechanisms have been incredibly successful in developing the thriving renewables industry that we now see in the UK, which provides a lot of our energy.

It is worth while recognising that the Bill is part of a much longer journey to decarbonising aviation. I declare an interest early in my remarks: I am the chair of the all-party parliamentary group on hydrogen. In a very long timeframe, we can potentially see aviation using cryogenic hydrogen as a fuel source, so we should keep that in view.

Similarly, SAF has various generations of development, with different feedstocks and mechanisms of production. The fuels also have different characteristics and ways of interacting with gas turbine technology. Therefore, the devil will absolutely be in the detail of the mechanisms that the Government are putting forward to build a market for the various generations of SAF. I hope we will see more detail about that strategic approach as this legislation goes forward.

It is important, as the amendments make clear, that the UK benefits from what we are doing in the Bill. I am passionate about seeing the whole UK low-carbon energy supply chain building and scaling rapidly. That includes electrons—the Government already have very ambitious goals around decarbonising electricity—as well as molecules and hydrogen. We are still awaiting the hydrogen strategy. I recently spoke to the Minister about that, and I understand that it is close. It is incredibly important that we have an ambitious and comprehensive strategy for the development of the hydrogen economy in the UK that does not just serve a small number of industrial clusters but underpins our decarbonisation of electricity, provides dispatchable power and provides an opportunity for industrial renewal as we move forward.

Hydrogen is an important feedstock for producing SAF by any route. We need a hydrogen economy, and for that we need a price. For a price, we need storage and transmission. As we fulfil our desires for SAF to be ambitious, bold and effective in decarbonising, we must also do the work as a Government to build a hydrogen economy to establish that anchoring price, as well as demand and production, so that we can see a thriving, decarbonising aviation sector, the renewal and regeneration of the whole UK industrial sector, and an absolute renaissance underpinned by low-carbon energy—both electrons and molecules.