UK launches £219 million fund to boost sustainable aviation fuel

The news

The UK Government has announced a £219 million Low Carbon Fuels Fund to accelerate domestic sustainable aviation fuel production. The programme is scheduled to launch later this summer and includes £93 million available over the next two years. It builds on £198 million already allocated through the Advanced Fuels Fund since 2022. Applications are expected to open in July, with priority for projects closest to production.

What's at stake

Sustainable aviation fuel offers a route to lower emissions from flights that cannot easily switch to electric or hydrogen power in the near term. The fund targets projects that convert waste materials, biomass and ethanol into fuel, with several facilities already in development. One project at Stanlow refinery aims for 200,000 tonnes per year capacity. Another smaller facility is planned at 14,000 tonnes per year. The government states the support will help establish the UK as a centre for low-carbon aviation fuels while aiding energy security and economic development.

Industry leaders note that public funding can unlock further private investment and move projects toward commercial scale. Existing schemes have already supported companies exploring different production technologies across the UK.

The case for

Domestic sustainable aviation fuel production could add £5 billion to the economy and create 15,000 jobs by 2050. Early public support helps promising projects reach commercial production and attract additional private capital. Comparable funding programmes in other countries have helped scale new fuel technologies and secure supply chains. The initiative positions the UK to compete in a growing global market for low-carbon aviation fuels.

The case against

Public money should target proven emissions reductions rather than speculative aviation projects. Resources could deliver faster and more certain cuts if directed at established low-carbon options in other sectors. Aviation remains a small part of overall emissions and sustainable aviation fuel production volumes are still less than 1% of jet fuel use globally. Critics argue that unproven technologies carry higher risks of limited impact relative to the scale of investment.

Why it matters now

If the fund proceeds, developers will receive support to scale facilities with applications opening in July. Successful projects could move closer to commercial output within the next two years. If the programme does not advance as planned, existing momentum from the Advanced Fuels Fund may slow and private investment could face greater uncertainty.

Further reading

internationalairportreview.com · Energy Voice

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