The UK government has announced ?63 million in funding for projects designed to accelerate the production of alternative aviation fuels.

The money will be shared by 17 UK-based companies, which are all involved in producing what the aviation industry calls sustainable aviation fuel (SAF).

The successful applicants for the funding include LanzaJet, which is building the Project Speedbird plant to convert ethanol into aviation fuel in Teesside in partnership with British Airways. Lanzajet is receiving ?10 million from the government for this project, as well as another?6.4 million for two other production sites in the UK.

Jimmy Samartzis,?CEO?of LanzaJet, said: ¡°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.¡±

Other firms to receive funding include OXCCU?Tech, which is developing a ¡°demonstration¡± plant at Oxford Airport to convert green hydrogen into SAF, and Sheffield University for its research helping the aviation industry to test and develop new fuels and clean energy technologies.

The grants are the third ¡°window¡± of funding through the government¡¯s Advanced Fuels Fund (AFF), which has now provided a total of ?198 million in investment towards the development of alternative aviation fuels.

UK aviation minister Mike Kane said:?¡°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.¡±

Alternative aviation fuels can reduce greenhouse gas emissions by 70 per cent over the lifecycle of the fuel compared with traditional kerosene-based fuel.

The UK has introduced its SAF mandate this year, which requires at least 2 per cent of the overall aviation fuel mix from flights to be from sustainable sources in 2025. This percentage will increase to 10 per cent by 2030.

Neil Robinson, chief sustainability officer at Manchester Airports Group (MAG), said:?¡°I am pleased to see ?4.5 million of investment awarded to Essar and NorthPointe Energy, that will see airlines using Manchester Airport have direct access to SAF via the existing pipeline to the Stanlow production site.??

¡°This funding, together with the UK SAF mandate and parliament¡¯s support of a revenue certainty mechanism, play an important role in the creation of a domestic SAF industry which will support the creation of thousands of new green jobs and secure a future of sustainable flying.¡±?