Speaking at the Airlines 2022 conference, Vere pointed out the first military flight to use 100% SAF had just operated. However, she acknowledged other countries could buy SAF cheaper.
Earlier at the event, Virgin Atlantic boss Shai Weiss criticised the pace of SAF innovation. He said investors were “still awaiting final details, or more likely, as is common in the UK, another consultation”.
Vere said five SAF plants would be under construction by 2025 and acknowledged there would need to be support for SAF, which is more expensive to produce than conventional fuel.
“I think there will have to be some grown-up conversations about whether the industry pays, do the travelling public pay or does the taxpayer pay,” she said.
However, she indicated she was not in favour of large-scale government support – as in the US – which has pledged $4.3 billion to support the SAF start-up, compared to the UK’s £165 million.
“I don’t think we want to follow the US model," Vere continued. "The US model is short-term, I would look at something long-term."
She also suggested copying "green shipping corridors", which showcase zero-emission fuels. “I’m wondering whether we can make green aviation corridors,” she said, but admitted: “I don’t know what they might look like.”
Vere ruled out any changes to Air Passenger Duty, for example, to fund sustainability. “We’ve just looked at it, so we won’t be looking at it again.” However ,an examination of how airspace is used could cut emissions, she said.
Weiss said the UK needed 100 times the available production of SAF if it was to hit emissions targets, saying the UK was “falling behind”. Government funds to kick-start SAF production had “yet to be allocated”, he said, claiming: “The UK supports energy transition, but simply not for aviation.”
He continued: “In the UK, there is no prospect of domestic production before 2025. UK airlines will be forced to meet their obligations abroad. The government needs to think about SAF the way it thinks about offshore wind, nuclear or hydrogen.” Weiss called for direct investment in infrastructure and fuel subsidies.
“The UK has targeted five plants by 2025, but at the end of 2022 there is not a single plant that has reached final investment decision. I fear that in 2025 we will be seeing most of our capacity for SAF coming from abroad.”
He said SAF or SAF blends were the only way an airline like Virgin could operate in future. “To think long-haul planes can simply be replaced with new technology that doesn’t exist is not going to happen.”
Weiss said the debate was always about “green or growth” but added: “I don’t think we have the luxury of seeing one or the other; it has to be green revolution to enable growth. We are an island nation; we have to find a way to make travel and connectivity green. We can’t accept this argument that it’s either or.”
