The UK government has announced a £219m (US$294m) Low Carbon Fuels Fund (LCFF) to support domestic sustainable aviation fuel (SAF) production, with £93m (US$124m) available immediately for companies to apply for from mid-July.
The fund, which launches later this summer, will prioritize projects closest to actual production stage. It builds on £198 (US$266m) previously invested through the Advanced Fuels Fund (AFF) since 2022. The government says low carbon fuel production could add up to £5bn (US$6.7bn) to the economy and support 15,000 jobs by 2050.
Aviation, maritime and decarbonisation minister Keir Mather said, “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.”
SAF reduces greenhouse gas emissions by an average of 70% on a lifecycle basis compared to conventional jet fuel, and is seen as a key technology for enabling aviation to expand while meeting net zero commitments.
Alongside the fund, the government is launching a Call for Evidence on the SAF Mandate, which requires an increasing proportion of UK jet fuel to be sustainable – starting at 2% in 2025, rising to 10% by 2030 and 22% by 2040. The review will examine global supply projections for different fuel types and their implications for meeting mandate targets. Overall targets are not under consideration for reduction.
Keith Packer, managing director of British Sugar, welcomed the announcement, saying the company’s British BioJet project at its Wissington site is exploring development of a demonstration plant using ethanol-to-jet technology to produce 1,500 metric tons of SAF from existing waste feedstocks.
Jennifer Holmgren, CEO of LanzaTech, said the investment “strengthens the UK’s position as a global leader in sustainable aviation fuel production,” and added that the Call for Evidence was “an important step toward giving industry the long-term certainty needed to scale production and accelerate private investment today and beyond 2030.”
LanzaTech is developing a SAF facility in Humberside in northeast England capable of supplying around 1% of UK jet fuel demand.
Related news, Gatwick Airport partners with Wildlife Trusts on £1m carbon removal initiative
