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The chief executive of Shell has challenged Labour’s assertion that sustainable aviation fuels (SAF) represent a “game-changer” for Heathrow’s third runway environmental impact, highlighting the minimal current adoption of these alternative fuels.
Wael Sawan, who leads one of the world’s largest SAF producers, revealed that sustainable aviation fuel constitutes less than 0.1 per cent of current aviation fuel usage. He emphasised that without stringent government mandates, airlines would be hesitant to embrace fuels that cost between two to four times more than conventional alternatives.
The timing of these comments is particularly significant as they follow Chancellor Rachel Reeves’s recent radio interview where she positioned sustainable fuels as transformative for aviation emissions. The Labour party’s optimistic stance suggests planes could be operational on Heathrow’s proposed third runway by 2035.
UK government projections paint a more conservative picture, with mandates requiring only 22 per cent SAF usage by 2040. This forecast implies that more than three-quarters of aviation fuel at Heathrow would remain fossil-fuel based, even after the proposed deadline for runway completion.
Shell currently supplies sustainable fuel across 40 locations in ten countries, including major airport hubs. However, Sawan expressed concern about the “backsliding on mandates in multiple countries,” which he says has impacted investment decisions. The company’s commitment of $10 to $15 billion investment through 2025 faces uncertainty due to weakening regulatory support.
Labour’s £63 million investment pledge through the advanced fuels fund and proposed “revenue certainty mechanism” may struggle to address these fundamental challenges. When questioned about SAF adoption by 2035, Sawan’s assessment was stark, predicting only a “very, very small proportion” of aviation fuel would be sustainable by that date.
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