UK sustainable fuel firm urges governments to push businesses to make the switch
UK sustainable fuel technology firm Velocys has hailed the around US’ $370bn package to reduce fuel emissions currently making its way through Congress – and has urged other governments to follow.
Under the Inflation Reduction Act, which is still subject to ratification, the US has set aside billions to support the production and use of sustainable aviation fuels and clean energy.
The US is planning on incentivising businesses to use cleaner fuels for transport via tax credits.
The tax credits are expected to underpin the financing of London-listed Velocys’ advanced sustainable aviation fuels project, Bayou Fuels, in Mississippi, US – where the company will develop fuels for its deals with British Airways and Southwest Airlines.
“This landmark legislation represents a compelling model which other governments will seek to follow,” CEO Henrik Wareborn said in a statement today. “In particular in its focus on total amount of avoided carbon instead of volume of sustainable fuel supplied, thus prioritising those technologies which offer routes to negative carbon intensity fuels.”
The legislation, which is expected to be signed into law by President Biden shortly, comes just one month after the UK’s Department for Transport published its Jet Zero strategy, in which it targets a net zero aviation industry by 2050.