The UK government has announced a 219 million pound low carbon fuels fund to support domestic production of sustainable aviation fuel (SAF). The first phase makes 93 million pounds available for companies to bid on starting mid-July 2026. SAF can cut lifecycle greenhouse gas emissions by an average of 70% compared to fossil jet fuel, making it a key technology for decarbonizing aviation while meeting net zero targets. The fund builds on 198 million pounds already invested since 2022 through the advanced fuels fund. The government estimates the low carbon fuel industry could add up to 5 billion pounds to the UK economy and support 15,000 jobs by 2050. Alongside the funding, a call for evidence on the SAF Mandate will explore how to ensure supply meets targets that require 10% of jet fuel to be sustainable by 2030 and 22% by 2040. Companies like British Sugar and LanzaTech have already received earlier grants and are developing SAF plants using waste feedstocks and ethanol-to-jet technology. The new fund aims to move projects closer to commercial production, giving investors confidence to back UK facilities and creating skilled jobs in engineering, construction, and manufacturing.
