UK announces £219m fund for SAF; opens door to mandate review amid supply concerns

The UK government has announced a £219m fund to boost domestic sustainable aviation fuel production, alongside opening the door for a review of its SAF mandate amid concerns about supply availability once key restrictions take effect in 2027.

Applications for the new low carbon fuels fund (LCFF) open in mid-July, with companies able to bid for a share of £93m over the next two years, prioritised for projects closest to production.

The LCFF builds on £198m already committed through the Advanced Fuels Fund since 2022, with domestic SAF production estimated to add up to £5bn to the UK economy by 2050.

The funding announcement comes as the government acknowledged a looming supply challenge. From 2027, a cap on HEFA, currently the most widely used SAF production method, takes effect, and it remains unclear whether other production pathways can scale quickly enough to fill the gap and keep pace with rising mandate targets.

The SAF Mandate requires an increasing share of jet fuel to be sustainable, starting at 2% in 2025, rising to 10% by 2030 and 22% by 2040.

In response, the government has launched a Call for Evidence to examine global supply projections and assess what they mean for the mandate’s achievability. It stressed the review is not about reducing overall targets or climate ambition. Any changes would be subject to public consultation, and if adjustments are needed for the 2027 obligation year specifically, the government said it would communicate its intentions before the end of 2026.

“This £219m is the next chapter in Britain’s green aviation revolution. We’re backing brilliant British innovation, creating thousands of high-skilled jobs and making sure the UK leads the world in the fuels that will power the future of flight,” said Keir Mather, Aviation, Maritime and Decarbonisation Minister.

Two companies already developing UK SAF capacity welcomed the news. British Sugar’s British BioJet project in Wissington is developing a demonstration plant using ethanol-to-jet technology. LanzaTech is building a facility in Humberside targeting around 1% of UK jet fuel demand.

“Today’s investment by the UK government strengthens the UK’s position as a global leader in SAF production. It will help companies like LanzaTech turn waste into green jet fuel, creating skilled jobs and economic growth,” said Jennifer Holmgren, CEO, LanzaTech.