Asked by: Charlotte Nichols (Labour - Warrington North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps his Department will take to reduce the cost of producing sustainable aviation fuel.
Answered by Jesse Norman
The Government will introduce a SAF mandate from 2025 requiring at least 10% of UK aviation fuel to be made from sustainable sources from 2030. The mandate will drive demand for SAF and the Government expects to see costs fall as production scales up. The Government published its second consultation on the detail of the SAF mandate in April 2023.
Alongside this, the Government has also launched the second application window for the £165m Advanced Fuels Fund competition to kick start a UK industry.
Philip New’s report on supporting investment in a UK SAF industry was published in April 2023, together with the Government’s response, and the Government is working with industry to consider options for additional revenue certainty to accelerate the growth of a UK SAF industry.
Asked by: Charlotte Nichols (Labour - Warrington North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether he has made an estimate of the potential impact of the introduction of sustainable aviation fuel on the cost of flights in the next five years.
Answered by Jesse Norman
The Government has committed to introduce a mandate to supply sustainable aviation fuel (SAF) from 2025 to help decarbonise the aviation sector in line with our Jet Zero Strategy. The Government recently launched a consultation on the future levels of the SAF mandate targets including analysis of the costs and benefits of a range of trajectories.
The uncertainty around future SAF costs makes it difficult to predict exactly how much ticket prices could increase by. However, any impact is expected to be relatively small.
Passing SAF costs onto passengers is ultimately a commercial decision for airlines.
Asked by: Graham Brady (Conservative - Altrincham and Sale West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of introducing a price stability mechanism, such as a contracts-for-difference scheme similar to that used in wind power generation, to encourage the production of sustainable aviation fuel production in the UK.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The government is committed to supporting the uptake of Sustainable Aviation Fuels (SAF). The UK’s SAF programme is one of the most comprehensive in the world, that includes the £180 million Advanced Fuels Fund and an ambitious SAF mandate which other low carbon technologies do not have.
On 17 April, we published a government response to an independent report on a UK SAF industry. It sets out how we are already taking action to address many of the report’s recommendations. We have committed to continue working with industry to consider the case for broader support alongside the AFF and the SAF mandate from 2025 (that will provide a long-term investment signal and price support), with a focus on industry funded intervention, to increase revenue certainty for UK SAF plants. If required following that work, we will launch a formal consultation this summer.
Asked by: Graham Brady (Conservative - Altrincham and Sale West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department will make an assessment of the potential value of the sustainable aviation fuel sector to the UK economy.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The government is committed to supporting the uptake of Sustainable Aviation Fuels (SAF). The UK’s SAF programme is one of the most comprehensive in the world, that includes the £180 million Advanced Fuels Fund and an ambitious SAF mandate which other low carbon technologies do not have.
On 17 April, we published a government response to an independent report on a UK SAF industry. It sets out how we are already taking action to address many of the report’s recommendations. We have committed to continue working with industry to consider the case for broader support alongside the AFF and the SAF mandate from 2025 (that will provide a long-term investment signal and price support), with a focus on industry funded intervention, to increase revenue certainty for UK SAF plants. If required following that work, we will launch a formal consultation this summer.
Asked by: Henry Smith (Conservative - Crawley)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what recent progress has been made on the construction of sustainable aviation fuel production plants by the five Advanced Fuels Fund competition winners.
Answered by Jesse Norman
The Department announced on 22 December 2022 that five sustainable aviation fuel projects would receive a share of the £165m Advanced Fuels Fund. The aim is to take as many of these as possible through to commercial scale production.
Timelines differ between projects, but the funding is being used for feasibility studies; pre-front engineering and design; front end engineering and design; and parts of engineering, procurement and construction. The Department for Transport cannot comment on the progress of individual projects due to commercial sensitivity. The Department for Transport remains on track to achieve its wider aim of at least five commercial-scale SAF plants under construction in the UK by 2025.
The Government launched the second round of the Advanced Fuels Fund on 30 March 2023.
Asked by: Henry Smith (Conservative - Crawley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had discussions with the Secretary of State for Transport on the potential merits of introducing a price stability mechanism for the production of sustainable aviation fuel in the UK.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The government is committed to supporting the uptake of Sustainable Aviation Fuels (SAF). A SAF mandate will be introduced to drive demand. A consultation setting out further detail on the mandate and potential uptake trajectories for SAF was published on 30 March. It reaffirms our commitment that at least 10% of fuel must be made from sustainable sources by 2030.
The government is investing in SAF plants to boost supply. 8 SAF plants received support through the green fuels, green skies competition. A further £165m is being invested through the Advanced Fuels Fund between 2022 – 25 to support UK SAF plants reach commercial scale.
DfT commissioned an independent review in October 2022 to understand how to accelerate investment in a UK SAF industry. The government will publish the review and respond to it shortly. The government has been clear that it wants to see the UK continue to capture its share of the global SAF market and play a leading role in the development, production and use of SAF. As the response to the independent report will set out, government will continue to work in partnership with industry and investors to explore the best approach to addressing barriers to investment.
Asked by: Henry Smith (Conservative - Crawley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of implementing a contracts for difference scheme, similar to that used to in the wind sector, for the production of sustainable aviation fuels.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The government is committed to supporting the uptake of Sustainable Aviation Fuels (SAF). A SAF mandate will be introduced to drive demand. A consultation setting out further detail on the mandate and potential uptake trajectories for SAF was published on 30 March. It reaffirms our commitment that at least 10% of fuel must be made from sustainable sources by 2030.
The government is investing in SAF plants to boost supply. 8 SAF plants received support through the green fuels, green skies competition. A further £165m is being invested through the Advanced Fuels Fund between 2022 – 25 to support UK SAF plants reach commercial scale.
DfT commissioned an independent review in October 2022 to understand how to accelerate investment in a UK SAF industry. The government will publish the review and respond to it shortly. The government has been clear that it wants to see the UK continue to capture its share of the global SAF market and play a leading role in the development, production and use of SAF. As the response to the independent report will set out, government will continue to work in partnership with industry and investors to explore the best approach to addressing barriers to investment.
Asked by: Henry Smith (Conservative - Crawley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing a price support mechanism for sustainable aviation fuel.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The government is committed to supporting the uptake of Sustainable Aviation Fuels (SAF). A SAF mandate will be introduced to drive demand. A consultation setting out further detail on the mandate and potential uptake trajectories for SAF was published on 30 March. It reaffirms our commitment that at least 10% of fuel must be made from sustainable sources by 2030.
The government is investing in SAF plants to boost supply. 8 SAF plants received support through the green fuels, green skies competition. A further £165m is being invested through the Advanced Fuels Fund between 2022 – 25 to support UK SAF plants reach commercial scale.
DfT commissioned an independent review in October 2022 to understand how to accelerate investment in a UK SAF industry. The government will publish the review and respond to it shortly. The government has been clear that it wants to see the UK continue to capture its share of the global SAF market and play a leading role in the development, production and use of SAF. As the response to the independent report will set out, government will continue to work in partnership with industry and investors to explore the best approach to addressing barriers to investment.
Asked by: Ben Bradshaw (Labour - Exeter)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential impact of the US Inflation Reduction Act and the need for a price support mechanism for sustainable aviation fuel in the UK on the future levels of domestic production of those fuels.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The government is committed to supporting the uptake of Sustainable Aviation Fuels (SAF). A SAF mandate will be introduced to drive demand. A consultation setting out further detail on the mandate and potential uptake trajectories for SAF was published on 30 March. It reaffirms our commitment that at least 10% of fuel must be made from sustainable sources by 2030.
The government is investing in SAF plants to boost supply. 8 SAF plants received support through the green fuels, green skies competition. A further £165m is being invested through the Advanced Fuels Fund between 2022 – 25 to support UK SAF plants reach commercial scale.
DfT commissioned an independent review in October 2022 to understand how to accelerate investment in a UK SAF industry. The government will publish the review and respond to it shortly. The government has been clear that it wants to see the UK continue to capture its share of the global SAF market and play a leading role in the development, production and use of SAF. As the response to the independent report will set out, government will continue to work in partnership with industry and investors to explore the best approach to addressing barriers to investment.
Asked by: Ben Bradshaw (Labour - Exeter)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an estimate of the future value of sustainable aviation fuel to the British economy.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The government is committed to supporting the uptake of Sustainable Aviation Fuels (SAF). A SAF mandate will be introduced to drive demand. A consultation setting out further detail on the mandate and potential uptake trajectories for SAF was published on 30 March. It reaffirms our commitment that at least 10% of fuel must be made from sustainable sources by 2030.
The government is investing in SAF plants to boost supply. 8 SAF plants received support through the green fuels, green skies competition. A further £165m is being invested through the Advanced Fuels Fund between 2022 – 25 to support UK SAF plants reach commercial scale.
DfT commissioned an independent review in October 2022 to understand how to accelerate investment in a UK SAF industry. The government will publish the review and respond to it shortly. The government has been clear that it wants to see the UK continue to capture its share of the global SAF market and play a leading role in the development, production and use of SAF. As the response to the independent report will set out, government will continue to work in partnership with industry and investors to explore the best approach to addressing barriers to investment.