Aviation: Alternative Fuels
The question
To ask the Secretary of State for Transport, pursuant to the Answer of 29 June 2026 to Question 12528 on Aviation: Alternative Fuels, when the wider eligibility criteria for the Low Carbon Fuels Fund will be published; and what those criteria will be.
Answered by Keir Mather
The Sustainable Aviation Fuel (SAF) Mandate cost-benefit analysis set out the estimates of the impact on an average one-way ticket price (Sustainable aviation fuel mandate: final stage cost benefit analysis). This analysis assumes that airlines pass on 75% of the additional costs of the SAF Mandate onto consumers. The year-on-year costs for different ticket-types was not part of the cost-benefit analysis, as this will be dependent on how individual airlines choose to distribute additional costs.
Eligibility criteria for the Low Carbon Fuels Fund will be provided in the guidance for applicants, which will be released upon the launch of the competition this summer. In the previous Advanced Fuels Fund competition, eligibility criteria included the categories of main fuel output, technology readiness level, feedstocks, greenhouse gas emissions, location, project lead and grant offer terms and conditions.
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