MPs call for subsidy of UK’s green aviation fuel producers
PM Rishi Sunak is under pressure from MPs in his ruling Conservative party to subsidise manufacturers of low-carbon aviation fuel in the UK to help the industry cut emissions. More than 60 parliamentarians, most of them Tories, have signed an amendment to the government’s energy bill calling on ministers to introduce financial support to create a UK industry producing so-called sustainable aviation fuels or SAFs. These greener fuels form the basis of the aviation industry’s pledge to reach net zero emissions by 2050, given the huge technological challenges in developing hydrogen-powered airliners or electric propulsion systems that would allow aircraft to be powered by greener forms of energy. The pressure comes amid internal debates in the Conservative and main opposition Labour party over their green policies before next year’s general election. The wrangling started after voters handed the Tories an unexpected by-election victory in London last week in protest against a plan by Sadiq Khan, the capital’s Labour mayor, to extend a charge on heavily polluting vehicles across the capital. The amendment to the energy bill, tabled by former Conservative transport secretary Chris Grayling, calls on the government to step in to create a “price stability mechanism” to incentivise fuel companies to produce more SAFs. This would mean the state agrees to a set price underwritten by the government for fuel, similar to schemes used to underwrite nuclear and offshore wind projects. Industry executives believe such a system is critical to building production of the fuels at scale and bring down the huge cost difference with conventional jet fuel. John Holland-Kaye, CE of London’s Heathrow airport, said a price stability mechanism would be “hugely important” in encouraging banks to provide the “cash flow” to new UK fuel producers. SAFs are made from materials ranging from used cooking oil and fats to household waste and non-food crops, and can reduce overall carbon emissions by up to 80 per cent compared with conventional jet fuel, according to industry calculations.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-07-28/general/mps-call-for-subsidy-of-uk2019s-green-aviation-fuel-producers
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MPs call for subsidy of UK’s green aviation fuel producers
PM Rishi Sunak is under pressure from MPs in his ruling Conservative party to subsidise manufacturers of low-carbon aviation fuel in the UK to help the industry cut emissions. More than 60 parliamentarians, most of them Tories, have signed an amendment to the government’s energy bill calling on ministers to introduce financial support to create a UK industry producing so-called sustainable aviation fuels or SAFs. These greener fuels form the basis of the aviation industry’s pledge to reach net zero emissions by 2050, given the huge technological challenges in developing hydrogen-powered airliners or electric propulsion systems that would allow aircraft to be powered by greener forms of energy. The pressure comes amid internal debates in the Conservative and main opposition Labour party over their green policies before next year’s general election. The wrangling started after voters handed the Tories an unexpected by-election victory in London last week in protest against a plan by Sadiq Khan, the capital’s Labour mayor, to extend a charge on heavily polluting vehicles across the capital. The amendment to the energy bill, tabled by former Conservative transport secretary Chris Grayling, calls on the government to step in to create a “price stability mechanism” to incentivise fuel companies to produce more SAFs. This would mean the state agrees to a set price underwritten by the government for fuel, similar to schemes used to underwrite nuclear and offshore wind projects. Industry executives believe such a system is critical to building production of the fuels at scale and bring down the huge cost difference with conventional jet fuel. John Holland-Kaye, CE of London’s Heathrow airport, said a price stability mechanism would be “hugely important” in encouraging banks to provide the “cash flow” to new UK fuel producers. SAFs are made from materials ranging from used cooking oil and fats to household waste and non-food crops, and can reduce overall carbon emissions by up to 80 per cent compared with conventional jet fuel, according to industry calculations.<br/>
