The UK government has announced a $294 million low carbon fuels fund aimed at scaling up production of sustainable aviation fuel (SAF). The fund is designed to support projects that produce SAF from feedstocks like waste oils, agricultural residues, and captured carbon, with the goal of reducing aviation emissions. This is part of the UK's broader strategy to decarbonize hard to abate sectors and meet net zero targets. Sustainable aviation fuel currently accounts for a tiny fraction of global jet fuel use, with IATA warning that SAF production will cover just 0.8% of aviation fuel demand in 2026. The new UK fund could help bridge that gap by providing capital for early stage production facilities. However, questions remain about feedstock availability, production costs, and whether the fund is large enough to make a meaningful dent in aviation emissions.
