en.Wedoany.com Reported - The UK government has announced a new Low Carbon Fuels Fund (LCFF) totaling £219 million, aimed at expanding domestic production of Sustainable Aviation Fuel (SAF).

The funding program, set to launch in late summer this year, aims to position the UK as a global hub for SAF production. The government estimates that by 2050, the sector will support over 15,000 jobs and contribute up to £5 billion to the UK economy.

Aviation, Maritime and Decarbonisation Minister Keir Mather stated that this investment will help ensure the UK leads the world in fuels that power future flight.

Of the fund, £93 million will be allocated next month, specifically for UK companies developing and scaling up SAF production. Applications will open in mid-July, with the government particularly encouraging companies that are close to the practical production stage to bid.

SAF is typically derived from waste and renewable feedstocks such as used cooking oil, animal fats, and agricultural residues. The aviation industry's growing reliance on jet fuel supplies from the Middle East, and the potential jet fuel crisis triggered by the closure of the Strait of Hormuz earlier this year, further underscores the need to expand SAF production.

SAF production not only enhances the UK's autonomy in aviation fuel but also significantly reduces carbon emissions—compared to fossil jet fuel, aircraft using SAF can reduce lifecycle greenhouse gas emissions by an average of 70%. This helps the UK develop its aviation industry while meeting its net-zero commitments.

The government hopes the domestic SAF production industry will attract investors, thereby supporting the construction of new production plants and creating jobs in engineering, construction, and manufacturing.

Additionally, the government has launched a call for evidence on the SAF mandate, which takes effect on January 1, 2025. The mandate requires that from 2025, SAF replace 2% of jet fuel demand for flights departing from the UK, with this proportion increasing annually to 10% by 2030 and 22% by 2040. The call for evidence will explore the impact of current global supply forecasts for different types of SAF on achieving this mandate. The government stated that the mandate targets will not be lowered, but rather it is studying how to strengthen the scheme to ensure it can flexibly respond to market changes.

Following the announcement of the mandate, airlines including Lufthansa and British Airways indicated that insufficient SAF supply and prices significantly higher than traditional fossil fuels would push up ticket prices. The newly established LCFF scheme is expected to alleviate this challenge.

The scheme builds on the government's existing £198 million investment through the Advanced Fuels Fund (AFF), from which some companies have already benefited. For example, British Sugar used its AFF grant for the British BioJet project, a SAF demonstration unit at its Wissington plant in Suffolk, which uses ethanol-to-jet technology to convert sugar production waste into 1,500 tonnes of SAF.

Keith Packer, Managing Director of British Sugar, said the company welcomes this next phase of funding for developing SAF and looks forward to submitting an application to continue supporting the government's goal of achieving net-zero aviation emissions.

In February 2026, Heathrow Airport announced an increase in its SAF incentive scheme, including £80 million this year to subsidise airlines' use of SAF. The airport is currently performing ahead of the UK government's mandate, aiming for 5.6% of its fuel to be green by the end of this year.

Although SAF is currently limited to replacing only a certain proportion of jet fuel due to how it burns in aircraft engines, researchers at Washington State University recently unveiled a technology that produces aromatic kerosene directly from vegetable oil. When blended with paraffinic SAF, it can completely replace fossil fuel-derived jet fuel.

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