The United Kingdom has taken an important step in strengthening its Sustainable Aviation Fuel policy by publishing its Contract Allocation Strategy for the Sustainable Aviation Fuel Revenue Certainty Mechanism. Rather than introducing new compliance requirements, this update explains how the government plans to award financial support contracts to eligible SAF producers. This provides the market with greater confidence on timelines, project selection and future funding opportunities.
What Has Changed
The biggest change from the previous consultation is that the government has now confirmed its preferred contract allocation approach. The first allocation round will use a competitive tender process supported by bilateral negotiations instead of a simple price based auction. This reflects the early stage nature of the SAF market where technologies, project risks and production pathways vary significantly.
Another important update is the publication of an indicative roadmap. Pre launch engagement is expected from late 2026, applications are planned to open in early 2027, shortlisted projects will be identified during late 2027 and contract awards are expected from late 2028. This gives developers and investors a clearer planning horizon.
Focus on Deliverability Instead of Lowest Cost
The strategy highlights that successful projects will not be selected only on price. Deliverability, value for money and the ability to commission projects on time will be central evaluation criteria. This creates a stronger incentive for developers to present technically mature and commercially robust projects rather than simply the lowest bids.
A Flexible Technology Approach
Unlike many funding programmes that reserve capacity for selected technologies, the government has confirmed that the first allocation round will not ring fence support for any specific SAF production pathway. Instead, projects using eligible non HEFA technologies will compete together while maintaining technology diversity through a balanced portfolio approach where necessary.
Looking Beyond the First Round
The strategy also signals that this is only the beginning. A second allocation round is expected after the first contracts are awarded, potentially supporting larger production volumes and a broader range of technologies. This provides investors with confidence that the mechanism is designed to support long term market growth rather than a single funding opportunity.
Conclusion
This strategy marks a shift from policy design to implementation. By providing greater clarity on contract allocation, timelines and project evaluation, the United Kingdom is creating a more predictable investment environment for domestic Sustainable Aviation Fuel production. For organisations across the aviation value chain, understanding these evolving funding mechanisms will become increasingly important as SAF deployment accelerates and long term compliance strategies continue to evolve.
Download Document File Here: Sustainable Aviation Fuel Revenue Certainty Mechanism Contract Allocation Strategy