UK proposes to exclude SAF from China biofuel probe

The UK government is proposing to remove sustainable aviation fuel (SAF) from its ongoing investigation into biodiesel and hydrotreated vegetable oil (HVO) imported from China.

The inquiry, launched in June, initially included a broad definition of biofuels that could potentially encompass SAF. However, after consideration, the UK’s Trade Remedies Authority (TRA) has determined that SAF is a distinct product with unique characteristics that warrant its exclusion.

The TRA argued that key reasons for excluding SAF include different production process and raw materials as SAF is produced using different methods and ingredients compared to HVO and biodiesel.

In addition, the TRA said SAF is not suitable for use in road transport and cannot be easily substituted with other biofuels; SAF commands a premium price due to its specific use in aviation and caters to a distinct customer base.

The UK government has introduced specific regulations for SAF, highlighting its unique position in the fuel market.

The TRA is currently seeking public input on the proposed change and will make a final decision by August 21st. The investigation was prompted by complaints from UK biofuel producers who alleged that Chinese imports were being sold at unfairly low prices, harming the domestic industry.

While the investigation focuses on biodiesel and HVO, the TRA has emphasized that the commodity codes used in the inquiry are for reference only and do not determine the scope of the investigation.

The TRA update on SAF can be accessed here.