LONDON, UNITED KINGDOM — The UK Parliament unveiled the Sustainable Aviation Fuel Bill on July 14, 2025, marking a significant policy push to scale domestic SAF production through a Revenue Certainty Mechanism (RCM). Funded by a levy on aviation fuel suppliers, the RCM targets advanced SAF pathways, particularly PtL (eSAF), which uses renewable electricity, water, and captured CO2 to produce drop-in fuels compatible with existing infrastructure.

“We believe that the UK Government is progressive globally on the topic by looking to adopt a Revenue Certainty Mechanism funded by a levy on aviation fuel suppliers. This is unprecedented in the industry and places the UK as a leader in enabling SAF production and in particular PtL SAF,” said Amy Hebert, CEO of Arcadia eFuels UK.

Building on the SAF Mandate implemented in January 2025, the bill seeks to limit first-generation HEFA fuels and incentivize scalable technologies amid projections that SAF could comprise 40% of aviation’s net-zero strategy by 2050, according to industry analyses. Exemplary projects, such as Arcadia eFuels’ Naboo facility in Teesside, plan to deliver 80,000 tonnes annually of PtL SAF, eDiesel, and eNaphtha by late 2030, bolstered by £12.3 million in prior government funding. This could enhance UK energy security, reduce import dependency, and leverage synergies with hydrogen and CCUS advancements, potentially driving £10 billion in gross value added.

For stakeholders like airlines, airports, and manufacturers—represented by coalitions such as Sustainable Aviation—the bill offers long-term investment certainty, but implications hinge on RCM details like strike prices, contract durations, and sub-mandates for PtL. Without these, domestic production risks being outpaced by US (45V credits) or EU (Clean Industrial Deal) supports, leading to higher imports. Challenges also include securing feedstocks; prioritizing non-recyclable waste for SAF over energy-from-waste could yield fivefold carbon savings as the grid decarbonizes. Integrating RCM with Hydrogen Production Business Models might optimize green hydrogen demand, forecasted at over 25% from PtL by 2040, enabling commercial-scale uptake by 2030 and positioning the UK for exports.

Source: UK Parliament, “Sustainable Aviation Fuel Bill (14th July 2025)”, July 14, 2025.