Aviation: Alternative Fuels
The question
To ask the Secretary of State for Transport, whether her Department plans to take steps to prevent aviation fuel suppliers from charging compliance risk premiums to mandated volumes of sustainable aviation fuel.
Answered by Mike Kane
We recognise that SAF is more expensive than jet fuel. This is why the Sustainable Aviation Fuel (SAF) Mandate has been designed to protect against excessive costs. The SAF Mandate also has a built-in review process so the Government can take action to change scheme parameters if necessary. The pricing of SAF are commercial decisions for the market though we are working to further understand interactions between the SAF Mandate and SAF pricing. We are engaging with relevant stakeholders – including airports, airlines, fuel suppliers and trade associations to do this.
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