A further £180 million has been committed to build a UK sustainable aviation fuels industry, as Phillips 66 Humber Refinery’s pioneering role was praised by government.
Funding, to be drawn down in the next three years, will support the commercialisation of production plants and fuel testing. It will be in addition to £400 million already committed to support the next generation of green technologies, with five new plants the plan.
The South Killingholme refinery’s supply to British Airways, which began earlier this year following a £20 million investment, is a flagship project in the Jet Zero strategy released on Tuesday. It could more than double that production in the timeframe.
Read more: High praise for Phillips 66's green agenda from Director General of British Chambers of Commerce
Altalto Immingham will also look to capitalise, with the Velocys venture backed by British Airways already consented across the port from the US-giant’s operations. Phillips 66 plans to more than double that production in the timeframe.
Stating aviation’s success must no longer damage the planet, Transport Secretary Grant Shapps said: “The sector will have to undergo significant changes in the coming decades but with that comes opportunities to create new jobs, develop new industries with innovative new technologies, and improve our energy security as a nation, therefore maximising these opportunities will also be an integral part of our approach.
“We have already seen real progress, with Phillips 66 producing and providing the first commercially produced sustainable aviation fuel in the UK. We have committed £180 million of funding to support the development of a UK SAF industry, and our aim is to unlock further private financing to develop our very own SAF plants with a commitment to have at least five plants under construction by 2025. Finally, we want to demonstrate transatlantic flight powered solely by SAF, and we have launched a competition to help the aviation industry achieve that target.”
Officials in Westminster estimate more than 5,000 jobs could be created, with Altalto Immingham, a joint venture between Velocys and British Airways, also consented for land on the South Humber Bank.
A 10 per cent fuel mix for UK aviation is targeted by 2030, with a mandate in 2025.
The government has acknowledged that development and production has been limited due to high capital costs, as well as reliance on technology yet to be proven at scale.
In a case study included in the 83-page document, Phillips 66 is highlighted as having leveraged capabilities on the existing refinery to handle waste cooking oil and other waste oils to produce 20,000 tonnes a year.
Plans to increase to more than 53,000 tonnes are in place for 2025. In an initial statement on the release, a spokesperson for Phillips 66 said: "We are proud to support this ambition through our production of SAF from waste feedstock."
Outlining delivery, a second application window will open for the government’s £165 million industry competition to accelerate the development of advanced fuel production plants, in autumn 2023, concluding by 2025, when at least five commercial-scale UK SAF plants should be under construction.
A spokesperson for Velocys, which has the Stallingborough plant technically ready to enter the final stage of development, said: "Velocys is pleased to see the UK Government setting out its Jet Zero Strategy, which outlines an ambition for a minimum of five commercial-scale UK SAF plants to be under construction in the UK by 2025. Also included is a mandate for at least 10 per cent SAF to be blended into conventional aviation fuel by 2030, reducing greenhouse gas emissions.
"As noted in the strategy, the Government has pledged to further work with industry to create the long-term conditions for investable projects in the UK. In order to develop a UK SAF industry and to meet the Government’s targets, Velocys believes additional investment support is vital to rapidly develop the UK SAF industry.
"As a member of the Jet Zero Council, Velocys looks forward to working closely with the UK Government on its mission to deliver net zero aviation by 2050."
Mr Shapps, publishing the strategy alongside Aviation Minister Rober Courts and Minister for Transport decarbonisation, added: “We are encouraged by the recent progress made by industry, such as Phillips 66 Limited Humber Refinery becoming the first in the UK to produce SAF at a commercial scale.”
Responding to the Government’s Jet Zero Strategy, John Foster, CBI Policy Unit Director, said: "The Government has provided clear signs to business that the UK is committed to scaling up net zero aerospace and aviation technologies. Industry will be buoyed by the strategy’s ambition but need today’s signals to now be matched with speed.
"Regular delivery plan reviews alongside a newly installed charter will give companies the confidence and focus they need to forge forward with the swift development of new, cutting-edge decarbonisation technologies.
"Government must now bring forward a price mechanism for sustainable aviation fuel. By becoming market makers, the UK could unleash investment in first-of-a-kind projects, stimulate economic growth and deliver on the 10 per cent SAF mandate by 2030.
“Jet Zero’s success lies in government working closely with business. By creating the conditions for companies to invest, our country can create a world-leading sector that shifts the dial on global aviation emissions.”
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