The UK government has launched a new consultation looking at how to fund a “revenue certainty mechanism” to support the production of alternative aviation fuels within the country.

The aviation industry has been calling for such a mechanism for several years to give investors more confidence to build alternative fuel production facilities in the UK, rather than having to rely on imported fuel.

The UK’s Department for Transport (DFT) wants feedback on how a revenue certainty mechanism should be funded to help ramp up production of what the industry calls “sustainable” aviation fuel (SAF).

The government is stressing that it wants to introduce an “industry-led price guarantee to boost sustainable aviation fuel supply while keeping ticket fares down”.

“The proposals will help to reduce risk, give investors the confidence they need to invest in UK SAF plants and help the sector secure the supply it needs to bolster the SAF industry in the UK,” said the DFT in a statement.

“The mechanism is also designed to limit costs and protect holidaymakers and working people against significant cost increases, with any rises expected to be in line with the usual variation of ticket prices.”

Using alternative aviation fuels could reduce emissions from air travel by as much as 80 per cent over the lifecycle of the fuel compared with kerosene. Making this switch in fuel usage will account for around two-thirds of the mitigation needed by the aviation sector to reach its target of becoming net-zero on carbon emissions by 2050.

The move to create a revenue mechanism comes after the UK government implemented its SAF mandate this year, which requires that at least 2 per cent of alternative fuels are used for flights departing from the country in 2025. The EU has also implemented a similar mandate this year.

UK 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. These proposals will power up SAF production in the UK, support thousands of green jobs and bolster expansion plans.”

Tim Alderslade, CEO of Airlines UK, which represents UK-based carriers, said its members support a revenue mechanism as “a means of driving production in SAF and ensuring the industry can comply with the mandate”.

“We look forward to working with government on its design with a particular focus on encouraging a competitive market and supporting FOAK (first of a kind) plants,” added Alderslade.

“The goal must be the production of as much SAF at the cheapest possible price for consumers, to help the industry get to net zero, support growth in UK aviation whilst minimising the impact on passengers.”

Airlines association IATA has called the production of alternative fuels “disappointingly slow”. It has urged governments to “wind down” subsidies for fossil fuel production and replace them with incentives to produce alternative fuels, such as SAF.

The current UK consultation runs until 31 March with the government planning to put a bill before the UK parliament this spring.