UK allocates £63 million to boost clean fuel production, create 1,400 jobs

London: UK Aviation Minister Mike Kane has revealed the 17 companies set to benefit from a fresh round of government investment under the Advanced Fuels Fund (AFF), with £63 million (US$85 million) allocated to ramp up sustainable aviation fuel (SAF) production and generate approximately 1,400 jobs across the country.

According to Minister Kane, expanding the low-carbon fuel industry could contribute up to £5 billion (US$7 billion) to the UK economy by 2050. This latest funding aims to cement the UK’s leadership in sustainable aviation and ensure the availability of clean fuels necessary to support growth in the sector.

With this allocation, the UK government’s total investment through the AFF has reached £198 million (US$267 million), focused on scaling up eco-friendly aviation solutions. The strategy supports the broader vision to develop a cleaner aviation ecosystem that aligns with the UK’s goals for sustainable economic growth, energy independence, and its “Plan for Change” climate objectives.

“This £63 million is lift-off for Britain’s green aviation revolution,” said Kane. “We’re not just backing brilliant British innovation, but also creating thousands of skilled jobs and securing the UK’s place at the forefront of global sustainable aviation. From Sheffield’s labs to the airports of tomorrow, this is how we power economic growth and become a clean energy leader.”

Funding recipients and their projects

The funding will be distributed among 17 organisations across the UK. Among them, OXCCU Tech is developing a demonstration plant at Oxford Airport, while LanzaJet is building a full-scale commercial SAF facility in Teesside.

The announcement was made at the University of Sheffield’s Energy Innovation Centre, which received £1.5 million (US$2 million) from this round. Minister Kane visited the site to view ongoing SAF research and engine testing.

University of Sheffield’s Prof. Mohamed Pourkashanian expressed pride in leading SAF innovation, calling the centre one of Europe’s most advanced facilities for clean fuel research.

Leaders from OXCCU and LanzaJet praised the AFF for enabling major strides in SAF technology, reinforcing the UK’s ambition to lead in sustainable aviation and green job creation.