The UK Government has today unveiled a new £219m funding programme designed to accelerate the production of sustainable aviation fuel, marking a major step in efforts to decarbonise aviation while supporting economic growth.
Th new Low Carbon Fuels Fund (LCFF) will provide £93m over the next two years to help companies develop and scale green fuel projects. Applications are set to open in mid-July, with funding targeted at projects that are closest to reaching commercial production.
The move is expected to strengthen the UK’s domestic sustainable aviation fuel industry, attract further private investment, create skilled jobs across the country and help position Britain as a global leader in sustainable jet fuel production.
The government estimates suggest the sector could contribute up to £5bn to the UK economy by 2050.
Aviation, Maritime and Decarbonisation Minister, Keir Mather, believes the investment will transform the industry: “This £219m is the next chapter in Britain’s green aviation revolution.
“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.
“This kind of investment is exactly how we kickstart economic growth, open up exciting new opportunities for young people and make our holidays greener and cleaner.”
Sustainable aviation fuel key to net zero aviation
Sustainable aviation fuel is widely viewed as one of the most practical tools available for reducing aviation emissions in the near term. Produced from sustainable feedstocks rather than fossil fuels, it can be used in existing aircraft and airport infrastructure without significant modifications.
According to government figures, sustainable aviation fuel can reduce greenhouse gas emissions by an average of around 70% across its lifecycle compared with conventional jet fuel.
As the aviation sector works towards net zero targets, green jet fuel is expected to play a central role in enabling future growth while limiting environmental impacts.
New support for UK sustainable aviation fuel industry
The latest funding package builds on £198m already invested through the Advanced Fuels Fund since 2022, which has supported the development of cleaner aviation technologies.
Officials say the new LCFF will focus on projects that have progressed beyond the early development stage and are nearing production.
By helping businesses bridge the gap between development and commercial operation, the government hopes to accelerate the rollout of sustainable aviation fuel production facilities across the UK.
The announcement comes as demand for lower-carbon aviation solutions continues to grow worldwide, creating opportunities for countries that can establish large-scale domestic production capabilities.
Economic benefits and skilled jobs
Alongside its environmental advantages, the government believes expanding sustainable aviation fuel production could deliver significant economic benefits.
New production plants are expected to support thousands of skilled jobs in engineering, manufacturing, construction and scientific research.
A thriving domestic green aviation fuel sector is expected to provide long-term opportunities for workers and encourage investment in industrial regions throughout the UK.
The funding is also intended to increase investor confidence by demonstrating long-term government support for low-carbon fuel technologies.
Government seeks industry input on sustainable aviation fuel mandate
Alongside today’s funding announcement, the government has launched a Call for Evidence on the UK’s Sustainable Aviation Fuel Mandate.
The mandate requires an increasing proportion of jet fuel supplied in the UK to come from sustainable sources, starting at 2% in 2025 and rising to 10% by 2030 and 22% by 2040.
The review will examine global supply forecasts for different types of sustainable fuel and assess what they mean for achieving future mandate targets.
Officials emphasised that the overall targets are not under review for reduction, with the focus instead on ensuring the scheme remains effective as the market develops.
The combined approach of direct funding and regulatory support is intended to accelerate sustainable aviation fuel production and reinforce the UK’s ambition to become a leading hub for low-carbon aviation technology.