Fuelling the Future: Unlocking the UK's biofuels potential for net zero

On 6 November 2025, we hosted the second seminar in our Chasing Zero – Energy Transition seminar series titled Fuelling the Future: Unlocking the UK’s biofuels potential for Net Zero.

The seminar was chaired by Irina Akentjeva (Partner, HSF Kramer) and featured a panel discussion with insights from Vanessa Lowe (Vice President, Structured Finance, Santander), Giacomo Rossi (Co-Founding Partner, Vesper Infrastructure Partners), and Shikhar Saha (Senior Legal Counsel, Alfanar).  

The panel had an interesting discussion on the financial, regulatory and commercial challenges facing the UK's biofuel industry, with the following emerging as key themes:

• Regulatory certainty
  The UK's regulatory framework was highlighted as a major driver of international investment in biofuels such as sustainable aviation fuel. The panel highlighted that the clear direction provided by the current framework enables investors and businesses to plan for the long term with greater confidence. While it was acknowledged that permitting and delivery of projects can be slower in the UK than in other jurisdictions the panel recognised that the UK Government was trying to address this issue through policy reforms.
   
• Feedstock supply and market challenges
  The panel discussed the issues with ensuring a reliable and sustainable feedstock supply and how this remains a significant hurdle to the widespread commercialisation of biofuels. There was recognition that Government could have a role in helping the different biofuels industries reach the necessary scale for domestic supply chains to develop effectively, fostering a robust ecosystem of feedstock suppliers and biofuel producers. Given limited public resources the panel considered that there was a strong case for Government support to be targeted to those areas, such as the aviation and maritime sectors, where there are limited alternatives to biofuels as a means of decarbonising those sectors.
   
• Energy security
  The panel touched on how the war in Ukraine has affected energy security concerns across the UK and Europe and the general impact higher energy prices are having on the public's attitude towards net zero goals. The panel emphasised the need to reframe the narrative around biofuels to underscore their contribution to domestic energy security, especially when sourced from local feedstocks. They suggested that further emphasis could be placed on the advantages of biofuels as “drop-in fuels,” which can integrate with existing infrastructure without substantial modification.

The panel concluded on an optimistic note by expressing confidence in the future of biofuels as a central component of the UK's net zero strategy. Continued regulatory support for biofuels coupled with industry innovation will help position the UK as a leader in the transition to sustainable energy.