£219 million investment to boost sustainable aviation fuel, create jobs and strengthen the UK’s position as a global leader in low-carbon aviation.
The UK government has announced a major £219 million investment to accelerate the development of sustainable aviation fuel (SAF), supporting cleaner air travel, driving economic growth and creating thousands of skilled jobs across the country.
As part of the new Low Carbon Fuels Fund (LCFF), £93 million will be made available over the next two years for pioneering UK companies to develop and scale up sustainable fuel production. Applications for funding are expected to open in mid-July, with support targeted at projects closest to commercial production.
Launching later this summer, the £219 million fund aims to strengthen the UK’s domestic low-carbon fuel industry and reinforce its ambition to become a global hub for SAF production.
The announcement builds on the government’s existing commitment to cleaner aviation, following £198 million invested through the Advanced Fuels Fund since 2022 to support emerging technologies and industrial innovation.
A thriving UK SAF sector could support up to 15,000 jobs and contribute as much as £5 billion to the economy by 2050, while helping the aviation industry meet its net zero commitments.
Aviation, Maritime and Decarbonisation Minister, Keir Mather, said: «This £219 million 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 offers a lower-carbon alternative to traditional jet fuel and can reduce greenhouse gas emissions by an average of 70% over its lifecycle. As aviation demand continues to grow, SAF is expected to play a critical role in enabling the sector to expand while meeting environmental targets.
The government believes that increasing domestic production of sustainable fuels will give investors greater confidence to finance new facilities in the UK, creating long-term employment opportunities in engineering, manufacturing, construction and scientific research.
Alongside the new fund, the government has launched a Call for Evidence on the SAF Mandate. The mandate requires an increasing proportion of jet fuel supplied in the UK to come from sustainable sources, beginning at 2% in 2025, rising to 10% by 2030 and 22% by 2040.
The review will examine global supply projections for different types of sustainable fuel and assess how industry can continue to meet future targets. Ministers have confirmed that overall SAF mandate targets are not being considered for reduction, with the focus instead on ensuring the framework remains effective and responsive to market developments.
The latest investment forms part of the government’s wider strategy to support clean growth, strengthen energy security and secure the UK’s leadership in next-generation aviation technologies. Photo by Paul Spijkers, Wikimedia commons.
