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Published by Environmental Finance
December 16, 2024 • 1-minute read
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.
This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.
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