Fight or Flight: Contract and Financing Considerations for UK Sustainable Aviation Fuel Projects
Published by Environmental Finance
Published by Environmental Finance
In this article published in Environmental Finance, Andrew Nealon, Afzaal Abidi, Joshua Hayes, Alex Lee, and Anuja Venkataramani* examine the UK’s efforts to establish a sustainable aviation fuel (SAF) industry.
The piece explores the regulatory framework provided by the SAF Order 2024, which introduces sustainability criteria and a certification process for SAF production, aiming to support the development of this nascent market.
The discussion addresses challenges such as the early-stage nature of SAF technologies, pricing uncertainties, and the need for long-term offtake agreements to meet lender requirements. Additionally, the authors highlight the impact of government initiatives, such as the Advanced Fuel Fund and a proposed revenue certainty mechanism, in enhancing the financial viability of SAF projects. These measures, combined with the growing demand for SAF as a drop-in fuel, position the UK to emerge as a leader in the global SAF sector despite inherent risks and complexities.
Read the full Environmental Finance article here.
* Anuja Venkataramani is a trainee solicitor in the London office.
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