News story

Government funding boost for low carbon fuels development

First stage winners of the Future Fuels for Flight and Freight Competition announced.

Airplane in flight.

Seven industry-led projects will receive a share of £2 million to develop proposals for advanced fuels production plants, as part of the government’s drive to reduce carbon emissions.

Proposals include the production of aircraft jet fuel from steel mill waste gases, and a project exploring the use of waste wood to produce a synthetic natural gas for HGVs.

This is part of the Future Fuels for Flight and Freight Competition, which was launched in April 2017 to encourage private sector investment in the development of advanced fuel production facilities in the UK.

Biofuels Minister Jesse Norman said:

We are committed to reducing carbon emissions from transport to tackle climate change and make the sector as sustainable as possible.

The £22 million funding commitment made through this competition will enable the development of this important set of technologies, paving the way for cleaner growth in the UK.

Supporting projects like these is just part of our work to help ensure the UK transport sector is greener than ever.

The aims of the competition are to:

  • increase domestic production of advanced low carbon fuels capable of reducing emissions from the aviation and HGV sectors
  • stimulate investment and create jobs through the development of a prosperous domestic industry

The successful bids are:

Organisation Fuel type Funding
Rika Biogas Technologies Liquid biomethane £103,034
Johnson Matthey Kerosene, diesel and petrol substitutes £178,000
Standard Gas Synthetic natural gas £178,000
LanzaTech Kerosene and diesel substitutes £410,000
Progressive Energy Synthetic natural gas £175,960
Kew Projects Diesel substitute £312,300
Velocys Technologies Kerosene and petrol substitutes £434,000

Applicants that receive Stage 1 funding will be invited to apply for a share of a further £20 million Stage 2 funding to help with construction. The Stage 2 assessment will take place in December 2018 and the successful applicants will be announced in early 2019.

Further information about the successful stage 1 applicants and the competition.

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Published 18 June 2018