The Department for Transport has announced that UK homegrown sustainable aviation fuel (SAF) production will be given a boost following the commitment of a new 219 million GBP Low Carbon Fuels Fund (LCFF).
Launching later this summer, the funding is intended to expedite economic growth and support jobs across the country.
Companies from across the UK developing low carbon fuels are now being invited to bid for a share of 93 million GBP over the next two years, with applications set to open in mid-July.
Funding will aim to focus on the ‘most promising projects’ – those closest to the actual production stage.
The announcement builds on a 198 million GBP pot already invested through the Advanced Fuels Fund (AFF) since 2022 to scale up cleaner aviation technologies, with low carbon fuel production expected to add up to 5 billion GBP to the UK economy by 2050, positioning the country as a global hub for SAF production.
Aviation, Maritime and Decarbonisation Minister, Keir Mather, said:This 219 million GBP 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.
Alongside the new fund; the Government has announced the launch of a Call for Evidence on the SAF Mandate which requires an increasing proportion of jet fuel supplied in the UK to be sustainable, starting at 2% in 2025, rising to 10% by 2030 and 22% by 2040.
This Call for Evidence, which will run until 28 July 2026, will explore what current global supply projections for different types of sustainable fuel may mean for meeting the SAF Mandate’s targets in the coming years, and forms part of an ongoing and collaborative approach with industry to ensure the scheme remains responsive to an evolving market.
