UK boosts SAF financing, updates mandate data

UK boosts SAF financing, updates mandate data

The UK is expanding its support for Sustainable Aviation Fuel (SAF) projects, broadening financing criteria and releasing updated provisional data for its SAF mandate.1 These measures aim to accelerate the development and adoption of low-carbon aviation alternatives, aligning with the nation's decarbonisation targets. This proactive stance underscores a commitment to fostering a future where clean energy solutions are abundant across all sectors, including aviation.

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The UK's strategic push for Sustainable aviation fuel

SAF is a critical component for decarbonising the aviation sector, a key part of the UK's broader energy transition. The government's initiatives reflect a refusal to settle for energy scarcity, instead challenging the notion that aviation must remain a high-carbon industry.

Why SAF is crucial for aviation decarbonisation

Aviation is one of the most challenging sectors to decarbonise due to the high energy density required for flight and the long development cycles for new aircraft technologies. SAF offers a viable solution as it can significantly reduce lifecycle greenhouse gas (GHG) emissions compared to conventional jet fuel. The UK government has set a legally binding target to reach net-Zero emissions by 2050, with aviation playing its part through the Jet Zero Strategy.

Overview of the UK's SAF mandate and goals

The UK's SAF Mandate came into effect on 1 January 2025, placing a legal obligation on fuel suppliers to blend SAF into jet fuel. The mandate requires SAF to account for at least 2% of all jet fuel in flights taking off from the UK in 2025, increasing to 10% by 2030 and 22% by 2040. The Department for Transport released updated provisional data on 23 July 2026. The SAF mandate is a key part of the UK's alternative aviation fuel policy.

What is the UK's SAF mandate target for 2030?

The UK's SAF mandate sets a target for SAF to comprise at least 10% of all jet fuel used in flights originating in the UK by 2030. This obligation began at 2% in 2025 and is set to increase linearly, reaching 22% by 2040.

Expanding financing and investment in UK SAF

Scaling SAF production requires significant investment, technological advancement, and robust supply chain development. The UK government is actively implementing policy and financial mechanisms to accelerate SAF development and adoption.

New criteria for SAF project funding

UK Export Finance (UKEF), the country's export credit agency, announced on 23 July 2026 that it will broaden its eligibility criteria for financing UK-based SAF projects. This expansion aims to consider a wider range of financing options, thereby opening the door to greater investment in the sector and helping projects move from development into commercial production.

Government incentives and private sector investment

The government is bolstering the SAF industry through various funding initiatives. These efforts aim to position the UK as a global hub for low-carbon fuels, fostering economic growth and job creation.

Impact on Sustainable fuel production capacity

These financing mechanisms are designed to stimulate domestic SAF production and infrastructure development. The government's vision includes having at least five commercial-scale SAF plants under construction in the UK by 2025. Increased investment is crucial to overcome the high production costs of SAF, which remain significantly more expensive than conventional jet fuels. By providing financial certainty, these initiatives aim to encourage the construction of new production plants and foster a competitive market.

Sustainable aviation fuel production pathways

SAF can be produced through various technological pathways, each utilising different feedstocks and conversion processes. The UK is exploring a range of these technologies to diversify its production capabilities.

Key technologies: HEFA, Fischer-Tropsch, and Alcohol-to-Jet

Several key pathways are approved for producing SAF. Hydroprocessed Esters and Fatty Acids (HEFA) is currently the most established method, converting waste oils, animal fats, and vegetable oils into jet fuel. Fischer-Tropsch (FT) synthesis converts biomass or municipal solid waste into syngas, which is then processed into SAF. Alcohol-to-Jet (AtJ) technology converts alcohols like ethanol or isobutanol into jet fuel.

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References

  1. Ethanol Producer Magazine. UK broadens eligibility for SAF financing, issues updated provisional SAF mandate data
Published on 25 Jul 2026

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Disclaimer

For the avoidance of doubt, this article is provided for informational purposes only and is not intended to constitute legal or financial advice. The author and/or Fuse Energy shall not be responsible for any losses arising out of any reliance on the information contained herein.