Analysis reveals SAF industry takes flight with £14.7bn global investment

New analysis has revealed how private investment and national commitments are driving global growth for sustainable aviation fuel (SAF) - with a total of £14.7bn invested in SAF projects.

‘The Sustainable Aviation Fuel: Global Investment Analysis’, produced by Innovate UK Business Connect, was developed to map out sources of private investment with national policies or instruments, production pathways and feedstock availability to understand patterns and correlations.

Ranked fourth globally for total SAF investment, the UK has secured £180m in private investment, drawing finance from the USA, Saudi Arabia and Canada. In the UK, investors are financing a range of technology pathways with Power-to-Liquids (PtL), Fischer-Tropsch (FT) and Alcohol-to-Jet (ATJ) dominating.

The analysis suggests the UK SAF industry is growing from increased private financial backing that has been supported by government policies. This includes the introduction of the SAF mandate, which launched on 1 January 2025, targeting a 10% blend in the aviation fuel mix by 2030. The UK government is also set to implement a Revenue Certainty Mechanism in 2026 to address the technological risks associated with non-HEFA (Hydroprocessed Esters and Fatty Acids) based SAF plants. This additional measure, which has received Royal Ascent, is expected to help attract private investment.

Whilst most of the SAF plants in the UK in receipt of private investment are planned, there is evidence of increased investor confidence in UK SAF in response to Government policies.

The analysis also sets out five key findings from the international SAF industry:

• 46% of the total private investment went to the USA

• Globally, 41% of investors financed Alcohol-to-Jet plants 63% of global companies with SAF plants are in receipt of private investment

• 78% of global nations with SAF plants have a type of instrument or policy

• Investors span across the globe with a strong presence in Europe, Asia, North America, and Oceania

• Multiple investment types are supporting the global SAF industry, with venture capital (VC) representing 25% of all investors and corporate investment comprising 24%

Michelle Carter, Head of Transport and Sustainable Aviation Fuel Innovation Programme Lead at Innovate UK Business Connect, said: “This initial analysis offers some insight into the evolving global SAF landscape. What is clear is the growing development of national policies or instruments is stimulating a positive investment ecosystem and strengthening the international effort to grow the SAF industry.

“Our analysis is a snapshot, and we are excited to see how the industry develops over time as we update the data. Whilst the analysis illustrates some of the factors driving the growth of SAF, collaboration is part of the mix and that is why the SAF Innovation Programme exists to help mobilise and connect the supply chain to help the industry get to scale faster.”

‘The Sustainable Aviation Fuel: Global Investment Analysis’

BlueSky Business Aviation News | 23rd January 2025 | Issue #780