UK sustainable aviation fuel gets £63mn government backing

The UK government has granted £63 million of funding to 17 sustainable aviation fuel (SAF) producers to support the development of the industry.

The government funding announced by the Aviation Minister today (July 22) is expected to support 1,400 jobs in the UK, and get the aviation sector closer to green flights. The receiving companies – winners of the Advanced Fuels Fund competition – include Alfanar Energy and Carbon-Neutral Fuels, as well as bioethanol-to-SAF developer LanzaJet for its Project Speedbird in Wilton.

“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,” said Jimmy Samartzis, CEO of LanzaJet.

LanzaJet also received funding from Airbus last July for a similar project in the US.

UK SAF industry growth 

As global aviation keeps progressing towards a carbon-free future, the UK is seeking to position itself as “the global leader in the green aviation market”. To this end, the government’s Advanced Fuels Fund (AFF) has provided a total of £198 million to date to scale up cleaner aviation fuels – including the £63 million announced today.

It’s estimated that low-carbon fuel production could add up to £5 billion to the UK economy by 2050.

Aviation Minister Mike Kane said: “This £63 million is lift-off for Britain’s green aviation revolution. We’re not just backing brilliant British innovation, we’re creating thousands of high-skilled jobs and positioning the UK at the forefront of the global sustainable aviation market. From the labs of Sheffield to the runways of the future – this is how we kickstart economic growth, secure energy independence and make Britain a clean energy superpower.”

UK SAF Bill 

In addition, Members of the UK Parliament introduced a bill in May 2025 to create a revenue certainty mechanism to support the development of the national SAF industry. Under the bill in consideration, SAF would benefit from a guaranteed ‘strike price’ to provide investors with more certainty. If the market price is lower than this guaranteed threshold, the government would step in to cover the difference, using funds from a new levy on fossil fuels producers.

The bill is seen as “a welcome innovation” by think tank Transport & Environment – which notes that this is the first such initiative in the world.

“The Government must now earmark part of the revenue support toward the production of synthetic e-SAF – the most scalable and sustainable form of SAF. This will be good for energy security, economic growth, exports and UK jobs in the production of a fuel of the future. Otherwise there is a real risk that RCM funding will flow only to less sustainable biofuel projects," added Roger Tyers, T&E UK’s Aviation Policy Manager.

T&E has warned before that governments and airlines are betting too much on biofuel-based SAF, which uses food crop and oil waste to make lower-impact jet fuel, instead of the more impactful e-kerosene, a synthetic fuel made from renewable hydrogen and carbon dioxide.