Government says that £219m Low Carbon Fuels Fund will launch this summer
Tue 16 June 2026
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The Government has announced the launch this summer of a new fund to promote the development of low carbon fuel as the UK aims to be a hub for sustainable aviation fuel (SAF). Innovative companies from across the UK are invited to bid for a share of £93 million over the next two years to develop low carbon fuel, with applications opening in mid-July.
The announcement builds on £198 million already invested through the advanced fuels fund (AFF) since 2022 to scale up cleaner aviation technologies.
Aviation, Maritime and Decarbonisation Minister, Keir Mather, said: "This £219 million 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."
The Government says that growing a thriving domestic SAF industry will give investors the confidence they need to back new production plants in the UK, creating well-paid, skilled jobs in communities the length and breadth of the country.
Alongside the new fund, the Government has launched a Call for Evidence on the SAF Mandate which requires an increasing proportion of jet fuel supplied in the UK to be sustainable, starting at 2% in 2025, rising to 10% by 2030 and 22% by 2040. The Call for Evidence will explore what current global supply projections for different types of sustainable fuel mean for meeting the SAF Mandate’s targets in the coming years.
Keith Packer, Managing Director of British Sugar, which is providing existing waste feedstocks to ethanol-to-jet technology to produce 1,500 tonnes of SAF said: "We welcome this next phase of funding to develop SAF, and look forward to making an application so that we can continue supporting the Government’s ambition for net zero aviation."
Image by Haberdoedas on Unsplash
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