The UK aviation industry is set to receive a significant boost after the Government announced up to £43 million in funding for green aviation projects, aimed at accelerating decarbonisation while supporting airport expansion and highly skilled jobs.
Unveiled today the investment will support research and development into zero-emission aircraft, clean aviation technologies and sustainable fuels, while also exploring ways to reduce the climate impact of aviation, including studies into avoiding warming contrails formed by aircraft exhausts.
The funding comes as the Government presses ahead with plans for expansion at Heathrow, Gatwick and Luton airports. Transport Secretary Heidi Alexander is due to chair a high-level meeting with airlines, airports, innovators and engineering firms to discuss how cutting-edge technology can enable growth while meeting climate targets.
Businesses, universities and research organisations across the UK will be invited to bid for a share of the funding, with competitive programmes launching from February. The projects supported will contribute to the Government’s ambition of achieving net zero aviation by 2050 and are expected to unlock significant private sector investment.
Low-carbon aviation fuels are seen as a major economic opportunity, with production alone forecast to add up to £5 billion to the UK economy by 2050. The Government says the £43 million package will help drive millions of pounds of private investment, supporting skilled roles in technology development and scientific research.
Speaking at the announcement, Transport Secretary Heidi Alexander said: “We’re backing UK businesses by powering up green aviation. Our £43 million investment will deliver the cutting-edge technology of the future, grow the economy and support highly skilled jobs as part of our mission to deliver national renewal.
“Zero emission aircraft, hydrogen fuels and other emerging technologies are vital to reduce the climate impacts from flying, and will enable us to deliver our airport expansion plans to boost connectivity and grow the economy.”
Among the initiatives that could benefit from the funding is a potential trial to better understand how contrails, condensation trails that can contribute to global warming, might be avoided. The Civil Aviation Authority will also develop the regulatory framework needed to support the widespread adoption of hydrogen fuel in aviation, working alongside pioneering companies and universities preparing for zero-carbon flight.
Part of the investment will support the tracking and use of Sustainable Aviation Fuels (SAF) in regions such as Africa and the Caribbean. This aims to strengthen participation in global carbon offsetting schemes and ensure UK airlines are not placed at a financial disadvantage compared with carriers operating in lower-income countries.
The announcement builds on wider government support for sustainable aviation. The Sustainable Aviation Fuel Bill, due to come into force later this year, will provide long-term certainty for UK SAF producers by guaranteeing a set price. This is complemented by an additional £63 million to accelerate new SAF production plants and £2.3 billion through the Aerospace Technology Institute programme over the next decade.
Industry groups welcomed the announcement. The Hydrogen in Aviation Alliance said the funding would help ensure the UK “leads the future of flight”, highlighting hydrogen-powered aviation as central to decarbonising the sector while enabling sustainable growth.
Duncan McCourt, Chief Executive of Sustainable Aviation, said the funding would help turn ambition into “operational reality” across key decarbonisation pathways, while Airlines UK Chief Executive Tim Alderslade described the investment as a crucial step in delivering a sustainable, net-zero future for UK aviation.
With competitions set to launch in the coming weeks, the Government believes the £43 million package will play a key role in shaping a greener, more competitive UK aviation sector for decades to come.