The UK government has announced a new £63 million funding package to support the development of sustainable aviation fuel (SAF), with 17 UK-based companies set to benefit.
The funding aims to advance cleaner aviation technologies and help scale up SAF production across the country. It is expected to support approximately 1,400 jobs in the sector.
The funding comes through the Advanced Fuels Fund (AFF), which has now allocated £198 million in total to SAF projects since its launch. The initiative is part of the government’s broader strategy to decarbonise the aviation sector while maintaining growth and competitiveness.
SAF is seen as a key element of this transition, offering a lower-emission alternative to conventional fossil jet fuel. On average, SAF can reduce lifecycle greenhouse gas emissions by up to 70%, depending on the feedstock and production methods used.
According to government projections, the expansion of low-carbon aviation fuel production could contribute up to £5 billion to the UK economy by 2050 and help establish the UK as a major hub for SAF.
The government also plans to introduce a SAF mandate through a proposed Sustainable Aviation Fuel Bill, which aims to provide long-term policy certainty for investors and producers.
The funding announcement was made at the University of Sheffield’s Energy Innovation Centre, where previous AFF grants have supported research into aircraft engine testing and alternative fuels.
Professor Mohamed Pourkashanian, Managing Director of the University of Sheffield’s Energy Innovation Centre, who is leading the project, said: ‘It is fantastic to see the University of Sheffield playing a leading role in the development of sustainable aviation fuel and supporting the aviation industry in its efforts to reduce its emissions.
‘At Sheffield we have some of the most advanced SAF research facilities in Europe and are excited to work with partners from the industry to help them test and develop new fuels and next generation clean energy technologies.’
Among the winners were OXCCU Tech who are based at Oxford Airport. They were awarded £3.1 million to deploy a small demonstration plant that uses combined catalysis technology to convert biogenic CO2 and green hydrogen into SAF.
CEO and Co-Founder Andrew Symes said: ‘Support from the Advanced Fuels Fund is a key step in scaling our technology. This funding enables the detailed design and construction of OX2, our demonstration plant launching in 2026, and builds on the successful delivery of OX1. It brings us closer to producing lower-cost, lower-carbon aviation fuel and supports the UK’s ambition to become a global leader in SAF production.’
Wilton-based LanzaJet were awarded £10 million for Project Speedbird, which will see the development of a commercial scale plant that uses ethanol-to-jet technology to convert advanced bioethanol into SAF.
The company’s CEO Jimmy Samartzis said: ‘We’re proud that Project Speedbird, developed in partnership with British Airways, has been recognised by the Department for Transport as part of its continued commitment to advancing SAF in the UK.
‘This support demonstrates confidence in LanzaJet’s technology and the critical role ethanol-to-SAF can play in delivering economic growth, creating jobs, and decarbonising air travel. Project Speedbird is vital to building a national SAF industry in the UK and to unlocking opportunity and innovation in the region.’
Photo: Brice Cooper
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