Humberside set for boost from £219m low carbon fuel fund
Humberside was named outright as a place that could see "skilled jobs and economic growth" when ministers unveiled new backing for sustainable aviation fuel on Tuesday 16 June. For a region that has spent years making the case for serious industrial investment, that is the line worth noticing. The Department for Transport says a new £219 million low carbon fuels fund will launch later this summer, with £93 million available over the next two years and applications opening in mid-July. The headline is national, but the examples given by government make clear where it expects the industrial gains to show up.
Innovative firms across the UK are being invited to bid, but ministers say the money will be aimed at the most promising schemes, especially those nearest to actual production. In other words, this is not a research exercise for projects with no route to market; it is meant to help plants get built. For northern manufacturers, ports and engineering businesses, that matters. If sustainable aviation fuel is going to be made here rather than shipped in, production will need to happen in places that understand heavy industry, long supply chains and the value of decent skilled work.
The government says low carbon fuel production could support 15,000 jobs and add £5 billion to the UK economy by 2050, while helping position the UK as a global centre for low carbon fuels. Tuesday’s package also builds on £198 million already invested through the Advanced Fuels Fund since 2022, which ministers point to as proof that this is a continuing programme rather than a one-day headline. Sustainable aviation fuel, or SAF, is being sold as one of the most workable ways to cut aviation emissions while keeping planes flying. Ministers say it can reduce greenhouse gas emissions by an average of 70 per cent across its lifecycle compared with fossil jet fuel, and they are also pitching the sector as a source of careers in engineering, science, construction and manufacturing.
Aviation, Maritime and Decarbonisation Minister Keir Mather called the new money "the next chapter in Britain’s green aviation revolution" and said it would back British innovation, high-skilled jobs and cleaner travel. It is the kind of language governments use when they want to show climate policy and industrial policy moving in the same direction. Readers in places that have waited a long time for replacement industries will hear something else as well: a test of delivery. Big-ticket plants are not built on ministerial optimism alone, and businesses will want the long-term certainty that turns a funding round into cranes, contracts and permanent work.
That is why the call for evidence launched alongside the fund may matter almost as much as the cash. The government is asking industry what current global supply forecasts mean for meeting the SAF mandate, which requires 2 per cent of jet fuel supplied in the UK to be sustainable from 2025, rising to 10 per cent by 2030 and 22 per cent by 2040. Ministers say those overall targets are not up for reduction. The stated aim is to keep the scheme responsive as the market shifts and to give producers more certainty about what demand will look like in the years ahead.
British Sugar is one of the companies already trying to move from promise to production. Keith Packer, the company’s managing director, said its British BioJet project at Wissington is exploring a sizeable demonstration plant that would use existing waste feedstocks and ethanol-to-jet technology to produce 1,500 tonnes of sustainable aviation fuel. The project previously received support from the Advanced Fuels Fund, and British Sugar says it plans to apply again. That is important because it shows how this next round is supposed to work: backing schemes that already have a foot in the door and a chance of becoming real industrial assets.
The sharper Northern angle sits with LanzaTech. Chief executive Jennifer Holmgren said the company is developing a new Humberside facility capable of supplying about 1 per cent of the UK’s jet fuel demand, arguing that the government’s investment can help turn waste into green jet fuel while creating skilled jobs and growth in the region. That is the part local readers will judge ministers on. If the £219 million produces working plants, long-term orders and solid jobs, Humberside could be near the front of the queue. If it settles for another round of announcements without production, the North will be entitled to ask what, exactly, changed.