Aviation: Renewable Fuels

(asked on 8th September 2021) - View Source

Question to the Department for Transport:

To ask the Secretary of State for Transport, what assessment he has made of the potential effect of the UK aviation sector’s demand for renewable fuels on the levels of (a) availability of renewable diesel for use in non-road mobile machinery and (b) demand for fossil diesel for use in non-road mobile machinery and diesel road vehicles as a result of a lack of available supplies.


Answered by
Rachel Maclean Portrait
Rachel Maclean
This question was answered on 15th September 2021

Under the Renewable Transport Fuel Obligation (RTFO) renewable fuel used in mobile generators is eligible for Renewable Transport Fuel Certificates (RTFCs). Suppliers of fossil fuel used in mobile generators and other forms of non-road mobile machinery are also subject to an obligation to ensure renewable fuels are supplied in the UK. Suppliers of fossil fuels used in aviation are not currently obligated under the RTFO, but renewable fuels used in the sector are potentially eligible for RTFCs. The Department has no plans to limit the supply of renewable fuel to mobile generators for the purposes of increasing the availability of renewable fuels in the aviation sector.

In July the Department launched a consultation on proposals for a UK sustainable aviation fuels (SAF) mandate requiring jet fuel suppliers to blend an increasing proportion of SAF into aviation fuel from 2025. The consultation closes on 19 September. The modelling supporting the consultation has taken into consideration the interactions between fuels needed for road, non-road mobile machinery and aviation, and the availability of sustainable feedstocks and renewable fuels. A summary of responses including next steps will be published in due course and the modelling will be updated considering evidence from the consultation.

Policy development on the RTFO takes into account competing demands for renewable fuel resources across different transport sectors. It is also informed by regular reviews to ensure the scheme is delivering cost effective carbon savings in support of UK carbon budgets. It is widely understood that the availability of biomass used to produce biofuels is limited. So, these finite resources need to be deployed in sectors of the economy where greater greenhouse gas savings can be achieved, or sectors that have fewer decarbonisation options, such as aviation. The renewable fuel market will transform and adjust through this decade and beyond. As we transition to electric vehicles, some biomass and other sources of renewable fuel will be freed up to accommodate increased use in SAF.

Biofuels are traded in a competitive global market and the RTFO certificate trading scheme includes several measures to ensure costs passed on to the consumer are minimised and targets for the supply of renewable fuels are met. For example, the RTFO scheme includes a buy-out mechanism. The buy-out price, which was reviewed and updated last year, is set at a level which ensures that in normal market conditions there is a strong commercial incentive for suppliers to discharge their obligation through the supply of renewable fuels. Suppliers of fossil fuels to the non-road mobile machinery and diesel road vehicle sectors therefore have a strong incentive to meet their obligations under the RTFO through ensuring the supply of renewable fuels.

There are no direct benefits to the UK public of improved air quality in international airspace, defined as airspace which is outside of the standard state territorial limits. Studies have shown that NOx emissions from aircraft above 1,000 feet are unlikely to have a significant impact on local air quality. However, on top of the carbon emissions reductions and economic benefits associated with SAF use and production, there is growing evidence that SAF also reduces sulphur dioxide and particulate matter emissions. Thereby improving local air quality during take-off and landing, as well as other non-CO2 impacts of aeroplanes, including contrails.

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