Shipping suspension threatens Chinese UCO market

UK publishes SAF mandate, targets 22pc by 2040

UK publishes SAF mandate, targets 22pc by 2040

London, 25 April (Argus) — The UK will mandate the supply of sustainable aviation fuel (SAF) from next year, targeting a 2pc share in 2025, which equates to around 230,000t of SAF according to the government, and increasing the obligation annually to 10pc in 2030, 15pc in 2035 and 22pc in 2040. The obligation, which falls on the jet fuel supplier, will remain at 22pc from 2040 until it is reviewed and updated, the UK said. The mandate is subject to parliamentary approval. An EU-wide SAF obligation is also due to come into effect next year, targeting a 2pc SAF share in 2025, increasing to 6pc from 2030, 20pc from 2035, 34pc from 2040, 42pc from 2045 and 70pc in 2050. Under the new UK mandate, hydrotreated esters and fatty acids (HEFA) SAF can be used to meet 100pc of SAF demand in 2025 and 2026, but it will be capped at 71pc in 2030 and 35pc in 2040. HEFA is the most common type of SAF today, and is expected to account for over 70pc of global production by the end of the decade, according to Argus data. An obligation for Power-to-Liquid (PtL) SAF will be introduced from 2028 at 0.2pc of total jet fuel demand, rising to 0.5pc in 2030 and 3.5pc in 2040. The EU is targeting a 1.2pc share of synthetic aviation fuels in 2030, rising to 2pc in 2032, 5pc in 2035 and 35pc in 2050. To be eligible under the mandate, SAFs must achieve minimum greenhouse gas (GHG) reductions of 40pc compared with a fossil fuel jet comparator of 89g CO2e/MJ, and must be made from sustainable wastes or residues, such as used cooking oil or forestry residues. SAF from food, feed or energy crops is currently not eligible for support under the scheme, the government said. PtL SAF will need to be produced from low carbon — renewable or nuclear — electricity. Recycled carbon fuels (RCF) from feedstocks like unrecyclable plastics can also be used to meet the obligation. Hydrogen, whether used as fuel precursor or as final fuel, must be bio-hydrogen from wastes and residues, RCF hydrogen or derived from low carbon energy. The mandate will also introduce tradeable certificates for the supply of SAF, with additional certificates awarded for fuels with higher GHG emissions savings. There will be three types of certificates: PtL, standard and HEFA. Buy-out mechanisms will be set at the equivalent of £4.70/l and £5.00/l for the main and PtL obligations, respectively. Formal reviews of the mandate will be conducted and published at least every five years, with the first to be carried out by 2030, the government said. The mandate will be separate from the country's Renewable Transport Fuel Obligation (RTFO). In tandem with the publication of the SAF mandate, the government launched a consultation on four options for an SAF revenue certainty scheme aimed at guaranteeing revenue from SAF and support production in the country. The UK previously said it aims to introduce the mechanism, which will be industry funded, by the end of 2026](https://direct.argusmedia.com/newsandanalysis/article/2486049). The consultation includes a preferred option for a "guaranteed strike price" (GSP), which would guarantee a pre-agreed price of SAF supplied into the UK market. By Giulia Squadrin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.