debates/debates2025-01-09b conversation_7
Source: hansard.parliament.uk (2025-01-09)

UK Parliament Hansard data: debates/debates2025-01-09b conversation_7

Gregor Poynton:What steps she is taking to support the use and production of sustainable aviation fuels. \p Mike Kane: The SAF mandate, which is one of the first pioneering policies of its kind, came into force on 1 January 2025 to build domestic demand for SAF. We are also growing UK supply through the advanced fuels fund, and we are committed to introducing a revenue certainty mechanism in the King’s Speech to encourage investment in UK SAF production. \p Gregor Poynton: I thank the Minister for his response. This UK Government are indeed working at pace to position the UK as a global leader in the rapidly growing SAF industry, which is vital for decarbonising aviation and our aviation industries, and for growing our economy. Will he commit in the forthcoming sustainable aviation fuel Bill to bringing forward the timeline for the revenue certainty mechanism to the end of this year or perhaps early 2026? Accelerating that measure, which has wide support, will give investors the confidence they need to back the 10 potential SAF facilities across the UK, including in Grangemouth, which is near my constituency. \p Mike Kane: I thank my hon. Friend, who has been a huge campaigner for Grangemouth. We have committed to bringing forward the revenue certainty mechanism. We have already legislated for a 2% fuel mix in the SAF mandate, which came into force on 1 January this year, and we look forward to the Bill coming before the House when parliamentary time allows. \p Jim Shannon: I thank the Minister for his answer. I know that he has a deep interest in Northern Ireland, so may I ask a similar question? Northern Ireland wants to provide the necessary aviation fuels and has the ability to do so. What progress has he made in his discussions with the Northern Ireland Assembly to ensure that we can be part of the future of this great United Kingdom of Great Britain and Northern Ireland, which is always better together? \p Mike Kane: The hon. Member is a doughty champion of air travel and SAF in Northern Ireland. Through the advanced fuels fund, we have 13 projects and we are currently investing well over £100 million across the UK to see what comes forward in the market, and I hope that Northern Ireland will be integral to that process. \p Lindsay Hoyle: I call the shadow Minister. \p Greg Smith: May I, too, wish the Minister a very happy birthday?

Estimates suggest that the SAF mandate provisions and the revenue certainty mechanism will still leave a shortfall, with a family of four facing over £300 extra to fly on holiday by 2040. That is a clear concern for consumers, as well as the airline industry. Net zero should not come at an additional cost to consumers or undermine freedoms—in this case, the freedom to fly. The test must surely be how to defossilise, decarbonise and allow people to do the same at the same cost. What steps is the Minister taking in conjunction with the Treasury to close the financial gap between incentives in the mandate and the actual increased cost of switching to SAF for the end consumer? \p Mike Kane: I think the good will ended with “happy birthday.”

I remind the shadow Minister that a little over 12 months ago, in one of his better videos, the then Prime Minister came out into Downing Street, looked at the sky and lauded the policy he wanted when we saw Virgin Atlantic’s 100% SAF trip across the Atlantic. This was the previous Government’s policy but, because of the sclerotic nature of that Government, we are only now getting on with implementing both the SAF mandate and the revenue  support mechanism. As the shadow Minister knows, a regular review point is baked into the legislation so that we can revisit targets, if required. \p Greg Smith: Of course, there is always another way. Much of the debate so far on SAF has been about fuels made from feedstocks and waste products. Unlike fuels that require feedstock, whose input costs will only ever go up, the industrial process that creates power-to-liquid synthetic aviation fuel will actually see its production costs reduce, with some predicting cost parity between the production of these synthetic fuels and the extraction and production of fossil fuels within a decade. Does the Minister agree that synthetics offer a much better long-term solution, and will he reprioritise the Government’s approach to SAF away from transitional solutions and towards synthetics? \p Mike Kane: The hon. Gentleman runs his car on synthetic fuel, so I know his passion. There are many ways to get to SAF. The SAF mandate is supported by industry, and there is a real opportunity to establish a plethora of production. We can create thousands of new well-paid jobs while protecting the pound in the holidaymaker’s pocket.