The UK Government has announced a £219 million funding programme aimed at expanding sustainable aviation fuel production and supporting long-term industry growth.
The UK Government has announced a £219 million Low Carbon Fuels Fund designed to accelerate domestic sustainable aviation fuel (SAF) production, support economic growth and strengthen the country’s position within the global low carbon aviation market.
The new programme, which is scheduled to launch later this summer, includes £93 million that will be made available over the next two years for companies developing low carbon fuel projects across the UK.
Funding aims to accelerate SAF production
The initiative builds on the £198 million already allocated through the Advanced Fuels Fund since 2022 and is intended to help move promising projects closer to commercial production.
Government officials believe the development of a domestic SAF industry could contribute up to £5 billion to the UK economy by 2050 while supporting around 15,000 jobs across multiple sectors, including engineering, manufacturing, construction and technology.
Aviation, Maritime and Decarbonisation Minister Keir Mather said: “This £219 million is the next chapter in Britain’s green aviation revolution.”
He added: “We’re backing brilliant British innovation, creating thousands of high-skilled jobs and making sure the UK leads the world in the fuels that will power the future of flight.”
SAF is considered one of the aviation industry’s most important decarbonisation tools. Produced from sustainable feedstocks rather than fossil fuels, SAF can reduce greenhouse gas emissions by an average of 70% across its lifecycle when compared with conventional jet fuel.
The Government said expanding domestic production capacity will help support aviation growth while enabling the sector to progress towards its net zero commitments.
Industry growth and future targets
Alongside the funding announcement, the Government has launched a Call for Evidence examining how the SAF Mandate can continue supporting industry development.
The mandate requires an increasing proportion of jet fuel supplied in the UK to be sustainable, beginning at 2% in 2025 and rising to 10% by 2030 and 22% by 2040.
The consultation will examine global SAF supply projections and assess how future production levels can support delivery of the mandate’s targets. Officials stressed that overall targets are not being considered for reduction and that the process is intended to strengthen the scheme as the market develops.
Industry leaders welcomed the announcement, noting that additional support could help unlock further private investment and accelerate project development.
Several SAF projects are already progressing across the UK, with companies exploring technologies that convert waste materials, biomass and ethanol into sustainable aviation fuel.
The Government believes continued investment in SAF production will help establish the UK as a leading international centre for low-carbon aviation fuels while supporting energy security, economic development and environmental objectives.
With funding applications expected to open in July, developers across the sector are now preparing proposals aimed at advancing the next generation of sustainable fuel production facilities.
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