UK Government drives forward SAF Revenue Certainty Mechanism

Nova Pangaea Technologies (NPT) welcomes UK Government’s announcement, publishing a consultation setting out how it intends to support the green fuels sector and provide certainty for SAF producers. This entails introducing an industry funded price guarantee (revenue certainty mechanism (RCM)), which will facilitate a steady income flow for producers regardless of SAF price fluctuations. In turn it will help keep costs down for airline and passengers. The intention of the proposals is to help reduce risk and give investor confidence to invest in UK SAF plants and to ensure the sector is able to secure supply and fully support a domestic SAF industry, which will drive economic growth and as part of the government’s Plan for Change.

Aviation Minister, Mike Kane, said:
“We are committed to building the technology and fuel supply that will see greener flying become a reality in a way that protects consumers. As part of our Plan for Change, these proposals will power up SAF production in the UK, support thousands of green jobs and bolster expansion plans.”

Pricing support and certainty mechanisms for the SAF industry are much needed to ensure airline emissions reductions and decarbonisation goals are met. A SAF industry, alongside mandates and legislation, can only be delivered through the implementation of clean technologies which play a vital role in ensuring a viable and immediate pathway to net zero.

NPT’s REFNOVA® technology is an integral part of the SAF value chain and its 2G ethanol enables SAF production. The technology is unique as its co-product, biochar, has a significant carbon impact and can deliver an immediate decarbonisation impact through sequestration and enable a negative CO₂ emissions profile.