22 Jul 2025

£63 million lift-off for clean aviation fuels

17 UK companies developing sustainable aviation fuel to receive share of new £63m funding boost, supporting around 1,400 jobs

Latest investment builds on this year's Sustainable Aviation Fuel drive which will help position the UK as the world leader in homegrown sustainable aviation fuel production

Latest investment supports greenlighting of multiple airport expansion schemes to kickstart economic growth and deliver on our Plan for Change

Passengers are a step closer to greener flights as the Aviation Minister today (22 July) announced the seventeen cutting-edge UK companies who will share £63 million to accelerate sustainable aviation fuel (SAF) production.

The boost will support around 1,400 jobs and secure Britain's position as the global leader in the green aviation market - critical to provide the clean fuel that’s essential to realise sustainable growth in the aviation sector.

Today’s investment means Government has provided £198m to date through the Advanced Fuels Fund (AFF) to scale up cleaner aviation technologies. Creating a clean aviation ecosystem will help power the next generation of airport infrastructure and capacity scale up, kickstarting economic growth and delivering the UK’s clean energy superpower ambitions to deliver on the Plan for Change.

Low carbon fuel production could add up to £5 billion to the economy by 2050, position the UK as a global hub for SAF production and enable the UK to go further and faster with expansion plans.

Aviation Minister Mike Kane said:

"This £63 million is lift off for Britain's green aviation revolution. We're not just backing brilliant British innovation, we're creating thousands of high-skilled jobs and positioning the UK at the forefront of the global sustainable aviation market.

"From the labs of Sheffield to the runways of the future - this is how we kickstart economic growth, secure energy independence, and make Britain a clean energy superpower."

SAF is an alternative to fossil jet fuel which reduces greenhouse gas emissions on average by 70% on a lifecycle basis, from feedstock to biofuel, making it the key technology that will allow UK aviation to grow capacity while achieving net-zero commitments.

The SAF Bill will help secure the future of the aviation sector, by boosting green fuel production in the UK and delivering cleaner flights. This Bill will give investors the confidence to back sustainable aviation fuel production. It will help grow the sector, providing good green jobs, and enabling the delivery of carbon savings.

Announcing the new funding at the University of Sheffield's Energy Innovation Centre, the Aviation Minister Mike Kane saw firsthand the groundbreaking work on aircraft engine testbeds and revolutionary aviation fuels powered by £1.5 million from previous AFF funding rounds.

Professor Mohamed Pourkashanian, Managing Director of the University of Sheffield’s Energy Innovation Centre, who is leading the project, said:

“It is fantastic to see the University of Sheffield playing a leading role in the development of sustainable aviation fuel and supporting the aviation industry in its efforts to reduce its emissions. At Sheffield we have some of the most advanced SAF research facilities in Europe and are excited to work with partners from the industry to help them test and develop new fuels and next generation clean energy technologies.”

The AFF winners include a range of companies and are spread across the country, such as OXCCU Tech who are developing a demonstration plant at Oxford Airport, to LanzaJet who are building a commercial-scale plant in south Wales.

Andrew Symes, CEO and Co-Founder of OXCCU comments: “Support from the Advanced Fuels Fund is a key step in scaling our technology. This funding enables the detailed design and construction of OX2, our demonstration plant launching in 2026, and builds on the successful delivery of OX1. It brings us closer to producing lower-cost, lower-carbon aviation fuel and supports the UK’s ambition to become a global leader in SAF production.”

Jimmy Samartzis, Chief Executive Officer, LanzaJet “We’re proud that Project Speedbird, developed in partnership with British Airways, has been recognised by the Department for Transport as part of its continued commitment to advancing SAF in the UK.

"This support demonstrates confidence in LanzaJet’s technology and the critical role ethanol-to-SAF can play in delivering economic growth, creating jobs, and decarbonising air travel. Project Speedbird is vital to building a national SAF industry in the UK and to unlocking opportunity and innovation in the region. We thank the DfT for its leadership and vision in accelerating the transition to net-zero aviation.”

Contact Information

Marco Barbato
marco.barbato@dft.gov.uk

Notes to editors

Since launch in 2022, the Advanced Fuels Fund has allocated £198 million to UK clean energy innovation, with this latest round securing funding through to 2026 following the Government's commitment at the Autumn Budget.

Winning organisations

Alfanar Energy Ltd (Lighthouse Green Fuels) 

Based in Stockton-on-Tees, the project is developing a commercial scale plant that uses torrefaction with gasification and Fischer-Tropsch synthesis technology to convert sawmill and forestry residues into SAF.

Award: £8 million

Altalto Ltd (Altalto Immingham)

Based in Immingham, the project is developing a commercial scale plant that uses gasification and Fischer-Tropsch synthesis technology to convert municipal solid waste into SAF.

Award: £3 million

British Sugar PLC (British BioJet)

Based in Wissington, the project is developing a commercial scale plant that uses ethanol-to-jet technology to convert sugar beet betaine residue bioethanol into SAF.

Award: £2.6 million

Carbon Neutral Fuels Ltd (ASAP-DAC)

Based in Workington, the project is developing a commercial scale plant that uses solid oxide electrolysis and Fischer-Tropsch synthesis technology to convert low carbon electricity and CO₂ from direct air capture and biogenic sources into SAF.

Award: £6 million

Equilibrion Ltd (Eq.flight)

Based in Hull, the project is developing a demonstration plant that uses solid oxide electrolysis, reverse water-gas shift and Fischer-Tropsch synthesis technology to convert direct air capture CO₂, local heat sources and nuclear electricity into SAF.

Award: £1 million

Equinor Low Carbon UK Ltd (The Humber SAF Project)

Based in the Humber region, the project is developing a commercial plant that uses methanol-to-jet technology to convert biomethanol and renewable e-methanol into SAF.

Award: £3 million

Essar Oil (UK) Ltd / EET Fuels (Stanlow Methanol-to-Jet)

Based in Stanlow, the project is developing a large commercial plant that uses methanol-to-jet technology to convert renewable e-methanol and biomethanol into SAF.

Award: £2.5 million

ETFuels UK Ltd (Project SkyFuel Teesside)

Based in Redcar, the project is developing a commercial scale plant that uses methanol synthesis and methanol-to-jet technology to convert biogenic CO₂ and green hydrogen into SAF.

Award: £5 million

LanzaJet UK Ltd (Project Speedbird)

Based in Wilton, the project is developing a commercial scale plant that uses ethanol-to-jet technology to convert advanced bioethanol into SAF.

Award: £10 million

LanzaTech UK Ltd (DRAGON 1&2)

This project is developing two commercial scale plants, one that uses ethanol-to-jet technology to convert recycled carbon fuel ethanol into SAF at Milford Haven, and another industrial site converting waste carbon dioxide sources and green hydrogen into SAF via ethanol-to-jet technology.

Award: £6.4 million 

NorthPointe Energy Ltd (Project Northpoint)

Based in Stanlow, the project is developing a commercial scale plant that uses gasification and Fischer-Tropsch technology to convert refuse derived fuel into SAF.

Award: £2 million

OXCCU TECH Ltd (OXCCU)

Based at Oxford Airport, the project is deploying a small demonstration plant that uses combined catalysis technology to convert biogenic carbon dioxide and green hydrogen into SAF.

Award: £3.1 million 

Power2X Solutions UK Ltd (eFuels Humber)

Based in the Humber Port, the project is developing a large commercial plant that uses methanol-to-jet technology to convert renewable e-methanol and biomethanol into SAF.

Award: £1.5 million

SuMo Engineering Ltd (CLEARSKIES)

Based in Wednesbury, the project is developing a demonstration plant using gasification, Fischer-Tropsch synthesis and gas reforming technology to convert refuse derived fuel and biomethane into SAF.

Award: £4.2 million

University of Sheffield (NEXTGEN-SAF)

This project is developing a demonstration plant that uses biogas-fuelled molten carbonate fuel cell technology for industrial biogenic CO₂ capture, combined with renewable electrolysis, reverse water-gas shift and Fischer-Tropsch synthesis technology to produce SAF.

Award: £1.5 million

Willis Sustainable Fuels (UK) Ltd (Teesside Carbonshift SAF Project)

Based in Teesside, the project is developing a small commercial scale plant that uses autothermal reforming and Fischer-Tropsch synthesis technology to convert residue-derived biomethane into SAF.

Award: £2.9 million

Zero Petroleum Ltd (Fuelling Zero)

Based in Saltend, the project is developing a small commercial plant that uses reverse water-gas shift and novel Fischer-Tropsch synthesis technology to convert biogenic carbon dioxide and green hydrogen into high blend SAF.

Award: £3.5 million