UK Proposes Support for Green Jet Fuel – Funded by Oil Companies
Skift Take
The UK’s SAF price guarantee proposal could be a way to de-risk investment in greener jet fuel, but it will take a lot to fix the supply problem.
The UK government announced this week a proposal for new support for greener jet fuel, a key element of which is a price guarantee to be funded by fuel companies.
Companies such as BP and Shell would pay a fee for every liter of fossil-fuel-based jet fuel. If the price of SAF falls below a set amount, the funds from the fuel industry would be used to top up the difference. If above, SAF producers would pay back the difference.
The goal is to encourage production of sustainable aviation fuel (SAF) by giving producers more certainty.
A representative from the fossil fuel industry said the industry does not yet have a position on the gover
