The government is investing £219 million in sustainable aviation fuel in order to cut emissions - supporting UK innovation and job opportunities.
The £219 million low carbon fuels fund (LCFF), which will launch later this summer, will support the UK production of sustainable aviation fuel, powering up economic growth and supporting thousands of jobs across the country.
Companies from across the UK have been invited to bid for a share of £93 million to develop low carbon fuel, with applications opening in mid-July. The fund will support the most promising projects, often those that are closest to the actual production stage.
The government’s announcement, on Tuesday 16 June, builds on the £198 million already invested through the advanced fuels fund (AFF) since 2022 to scale up cleaner aviation technologies. Low carbon fuel production could add up to £5 billion to the UK’s economy by 2050, positioning the country as a global hub for sustainable aviation fuel (SAF) production.
SAF is an alternative to fossil jet fuel which reduces greenhouse gas emissions on average by 70% on a lifecycle basis, making it a vital technology that will grow the UK’s aviation capacity while meeting its net zero commitments.
Growing a successful domestic SAF industry will give investors the confidence they need to back new production plants in the UK, which would in turn create well-paid, skilled jobs - especially for young people looking to build their career.
Alongside the new fund, the government is also launching 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 and rising to 22% by 2040. The Call for Evidence will explore what current global supply projections for different types of sustainable fuel mean for meeting the SAF Mandate’s targets in the upcoming years.
The Aviation, Maritime and Decarbonisation Minister, Keir Mather, said that this funding boost marks the next chapter in sustainable aviation revolution, creating thousands of high-skilled jobs and kickstarting economic growth.