Tuesday, July 22, 2025

£63 million funding for sustainable aviation fuels to boost UK economy

Seventeen UK companies developing sustainable aviation fuel (SAF) will benefit from a £63 million funding boost, aiming to create 1,400 jobs and establish the UK as a global leader in SAF production. This new investment builds on ongoing efforts to drive the development of green aviation technologies, positioning the country at the forefront of sustainable aviation fuel production.

The latest funding is part of the government’s strategy to accelerate the growth of the aviation sector while meeting net-zero goals. To date, £198 million has been allocated through the Advanced Fuels Fund (AFF), supporting the scaling of cleaner aviation technologies. This investment is expected to contribute up to £5 billion to the UK economy by 2050, enhancing the country’s global role in SAF production and helping to expand airport infrastructure.

SAF is a crucial alternative to fossil jet fuel, offering a reduction in greenhouse gas emissions by up to 70% over its lifecycle. This technology is vital for sustainable growth in aviation and achieving the sector’s decarbonisation targets.

The funding will support various projects across the country, including OXCCU Tech’s demonstration plant at Oxford Airport and LanzaJet’s commercial-scale facility in Teesside. These projects represent a significant step toward increasing SAF production capacity and supporting the UK’s clean energy ambitions.

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