British Airways is among industry members calling on the government to ramp up support to prevent higher costs of sustainable aviation fuels (SAFs) causing future ticket price hikes.
Industry group Sustainable Aviation called on the government on Monday to introduce similar incentives to the US Inflation Reduction Act, which unlocked nearly US$400bn of public support for clean tech companies last August.
The UK “risks losing an industry estimated to support 60,000 jobs and be worth around £10bn […] by 2050” without urgent support, wrote the group, which includes members British Airways, Heathrow Airport and Airbus.
Industry members pressured the government as its Jet Zero council met at Farnborough airport on Monday and laid a two-year plan aimed at aiding the sector’s 2050 net zero goal.
Under these, £1mln of funding was announced for liquid hydrogen research on top of an already-existing £685mln budget for new low-emission aviation technology.
Despite several projects already being underway to decarbonise the sector, including Rolls-Royce’s SAF-compatible engines and hydrogen-powered flights, companies warned higher fuel costs would leave passengers paying more in the future.
A government mandate will require aircraft to run on at least 10% sustainable aviation fuel, which is made using agricultural and other waste, by 2030.
Though these are said to produce 70% fewer emissions than traditional fuel, SAF is more expensive to produce and large-scale manufacturing capacity is yet to be built.
Allowances should be introduced similar to those in the US and EU, Sustainable Aviation said, covering the price differences between traditional and lower-carbon fuels.
“The US and Europe are surging forwards in the race to create new industries in sustainable aviation fuels and technology,” Sustainable Aviation chairman Matt Gorman said.
“The UK has all the natural advantages to be able to join them – but we need to move quickly.”