Alder Bioinsights News Review: Biofuels Issue 154, January 2025

Foreword

A new analysis by Innovate UK Business Connect has revealed that private investment and national commitments are driving global growth for sustainable aviation fuel (SAF). The UK has secured £180 million in private investment, drawing finance from the US, Saudi Arabia, and Canada. The domestic SAF industry has seen growth in private investments largely due to government policies, such as the introduction of the SAF mandate and the implementation of a Revenue Certainty Mechanism in 2026. The mandate, which was announced in May last year, instructs that SAF must make up at least 2% of all jet fuel in flights taking off from the UK from 2025 or otherwise suppliers pay a fee i.e. buy-out. The share will grow year-on-year to 10% by 2030 and 22% by 2040. The analysis concludes that the growing development of national policies is indeed stimulating a positive investment ecosystem and in turn strengthens the international effort to grow the SAF industry.

A similar SAF mandate is rolling out this month in the EU, i.e. ReFuelEU, which requires that at least 2% of the fuel provided at Union airports annually from 2025 onwards will need to be SAF. The regulation sees the blend share increase to 6% within the next 5 years, 34% in 2040 and finally reaching 70% in 2050.

Both, EU and UK, SAF mandates took effect this January and below are some of the latest developments in production facilities and supply agreements across Europe…