UK Government Invests £63 Million to Boost Green Jet Fuel Industry

New funding aims to reduce aviation emissions, create jobs, and fuel Britain’s clean energy future

A Greener Take-Off for UK Aviation

In a major step towards a more sustainable aviation sector, the UK government has announced a £63 million investment into the development of sustainable aviation fuels (SAF). The funding will be shared among 17 British companies working on innovative jet fuel alternatives made from waste materials, forest residues, hydrogen, and even sugar beet.

This investment is part of the UK’s wider strategy to become a global leader in green aviation, reduce carbon emissions, and support high-skilled job creation in the growing clean tech sector.

What Are Sustainable Aviation Fuels?

Sustainable aviation fuels are low-emission alternatives to traditional kerosene-based jet fuel. Unlike conventional fuels, SAF is derived from renewable or waste-based sources. These can include:

• Forestry cuttings and sawmill waste
• Hydrogen gas
• Household and municipal waste
• Crops like sugar beet

The government says SAF can cut lifecycle greenhouse gas emissions by up to 70%, helping airlines meet increasingly tough international climate targets.

Economic Benefits for British Industry

Ministers estimate the initiative could add £5 billion to the UK economy and support up to 1,400 new jobs, particularly in regions developing clean energy infrastructure.

The largest recipient of this funding round is Alfanar Energy, based in Stockton-on-Tees, which will receive £8 million to convert waste wood from sawmills into jet fuel. Other beneficiaries include developers focusing on hydrogen-based solutions and advanced recycling methods.

Aviation Minister Mike Kane said the government’s support would “kickstart economic growth, secure energy independence, and make Britain a clean energy superpower.”

Policy Changes to Encourage SAF Use

Since January 2025, all flights departing the UK must include at least 2% sustainable fuel in their tanks. This figure is set to rise to 10% by 2030 and 22% by 2040, putting pressure on fuel suppliers to ramp up production.

The Department for Transport acknowledges that current SAF supply is limited, but insists this investment will help scale up production and reduce costs, creating a viable market for green aviation fuels.

Environmental Campaigners Urge Caution

Despite the optimism, climate campaigners remain sceptical. Some argue the availability of raw materials is too limited and expensive for SAF to ever fully replace fossil fuels.

James Sutton, co-director of climate charity Possible, warned:

“At best, SAF will reduce aviation emissions by a tiny fraction. We need urgent policies to reduce flying, not just hopes pinned on future technologies.”

Campaigners have called for taxes on frequent flyers and caps on airport expansion, arguing these would have a more immediate impact on emissions.

Conclusion: A Flight Path to a Cleaner Economy

While concerns around scalability and long-term sustainability remain, the UK’s £63 million investment marks a significant step toward reducing aviation’s carbon footprint and strengthening the clean energy sector.

By supporting homegrown innovation and creating green jobs, this move helps position Britain at the forefront of the global shift to cleaner fuels. If successful, it could boost economic resilience, reduce reliance on imported fossil fuels, and establish the UK as a hub for sustainable aviation technology—all while making your next holiday flight a little greener.

Sources: (SKY.com, BBC.co.uk)