Question to the Department for Transport:

To ask the Secretary of State for Transport, what assessment he has made of the potential merits of establishing a Contract for Difference scheme for the domestic sustainable aviation fuel industry.

The Government’s sustainable aviation fuel (SAF) programme is one of the most comprehensive in the world. The Government is securing demand for SAF through mandating its use from 2025 and is supporting supply through its £165 million Advanced Fuels Fund competition to help scale up SAF production in the UK. SAF technologies are relatively new and many have not been demonstrated at full scale. Technology, construction and feedstock barriers to investment remain as well as revenue certainty.

The Government has committed to work together with industry to consider the best way to help the aviation industry to decarbonise, including options for additional revenue certainty for a UK SAF industry to be provided via an industry funded intervention. This work is under way and the Department is awaiting the findings from several key pieces of work that have been undertaken by industry experts, through the Jet Zero Council’s Sub Delivery Group on SAF, to inform next steps.