£219 million to power Britain's green aviation revolution

homegrown sustainable aviation fuel production given a boost thanks to a new £219 million low carbon fuels fund () which will launch later this summer, powering up economic growth and supporting thousands of jobs across the country.

Innovative companies from across the 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 fund will focus support on the most promising projects meaning those closest to the actual production stage.

Today's announcement (16 June 2026) builds on £198 million already invested through the advanced fuels fund () since 2022 to scale up cleaner aviation technologies. Low carbon fuel production could add up to £5 billion to the economy by 2050 and position the as a global hub for sustainable aviation fuel () production.

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 leads the world in the fuels that will power the future of flight.

This kind of investment is exactly how we kickstart economic growth, open up exciting new opportunities for young people and make our holidays greener and cleaner.

is an alternative to fossil jet fuel which reduces greenhouse gas emissions on average by 70% on a lifecycle basis, making it a key technology that will allow aviation to grow capacity while meeting its net zero commitments.

Growing a thriving domestic industry will give investors the confidence they need to back new production plants in the , creating well-paid, skilled jobs in communities the length and breadth of the country.

Investment in low carbon fuels is investment in the future of aviation. For young people looking to build a career, the 's growing industry offers some of the most innovative and exciting opportunities anywhere in the economy, from engineering and science to construction and manufacturing.

Alongside the new fund, the government is today launching a Call for Evidence on the Mandate which requires an increasing proportion of jet fuel supplied in the to be sustainable, starting at 2% in 2025, rising to 10% by 2030 and 22% by 2040. The is already seeing encouraging growth in supply.

The Call for Evidence will explore what current global supply projections for different types of sustainable fuel mean for meeting the Mandate's targets in the coming years.

This is part of an ongoing and collaborative approach with industry to ensure the scheme remains responsive to an evolving market. Overall mandate targets are not under consideration for reduction, with proposals focusing on strengthening the scheme for the future.

Keith Packer, Managing Director of British Sugar, said:

We are very pleased to see the launch of the 's low carbon fuels fund and the clear commitment to further development of homegrown sustainable aviation fuel in the . At British Sugar, following a grant from the advanced fuels fund, the British BioJet project at our Wissington site is exploring the development of a sizeable demonstration plant.

It will utilise our existing waste feedstocks with ethanol-to-jet technology to produce 1,500 tonnes of - supporting the growth in cleaner, greener jobs and investment. We welcome this next phase of funding to develop , and look forward to making an application so that we can continue supporting the government's ambition for net-zero aviation.

Jennifer Holmgren, Chief Executive of LanzaTech, said:

Today's investment by the government strengthens the 's position as a global leader in sustainable aviation fuel production. It will help companies like LanzaTech turn waste into green jet fuel, creating skilled jobs and economic growth for example in Humberside, where we are developing a new facility capable of supplying around 1% of the 's jet fuel demand.

The call for evidence on future targets is also an important step towards giving industry the long-term certainty needed to scale production and accelerate private investment today and beyond 2030.