The UK has opened a new £219 million Low Carbon Fuels Fund to push domestic sustainable aviation fuel production, while airlines warned that advanced supply, especially power-to-liquid e-fuels, may still miss mandate demand.
The fund will offer £93 million over the next two years, with applications due in mid-July, and will back projects closest to commercial production. It replaces the earlier Advanced Fuels Fund and sits alongside a call for evidence on the SAF mandate, which keeps the 2% 2025 target, 10% in 2030 and 22% in 2040. Airlines UK says the PtL sub-mandate could leave operators paying for fuel they cannot buy.
That tension now defines the next phase of UK SAF policy.