The UK government has unveiled a significant package of support for the aerospace sector, aiming to drive both industrial growth and the transition to cleaner aviation. At the Farnborough International Airshow this week, UK Export Finance (UKEF) announced an expansion of financing options for UK-based sustainable aviation fuel (SAF) projects, which could stimulate investment in this crucial decarbonisation technology.
The government's export credit agency will now consider a wider range of financing support for domestic SAF production. This move is designed to help the aviation industry meet its environmental targets, with SAFs capable of reducing lifecycle greenhouse gas emissions by up to 80%. Projections suggest that a robust low-carbon fuel industry could create up to 15,000 jobs and contribute an additional £5 billion to the UK economy by 2050.
Key international partnerships have also been forged. Memoranda of Understanding have been signed with Turkish Aerospace, a prominent defence company, and Vertical Aerospace, a British pioneer in electric 'air taxi' technology. The agreement with Turkish Aerospace establishes a framework for enhanced cooperation on defence export projects to third-country markets. UKEF will consider supporting Turkish Aerospace's export contracts up to 100% of the value, provided at least 20% of the content is sourced from UK suppliers.
The partnership with Bristol-based Vertical Aerospace aims to help British innovation in advanced air mobility reach global markets. These agreements are expected to boost UK industrial competitiveness, create high-value jobs across the country, and accelerate the aerospace sector's transition to more sustainable flight. The government has highlighted aerospace as a vital industry for skilled jobs and innovation.
UK Export Finance CEO Tim Reid stated that these partnerships underscore UKEF's role in enabling British aerospace innovation to access global markets and support industries shaping the future of flight. By backing SAF exports and strengthening relationships with key international players, UKEF aims to unlock new opportunities for UK businesses in some of the world's fastest-growing aerospace sectors.
Jonathan Reynolds, Secretary of State for Business, Innovation, Science and Trade, emphasised the government's focus on 'good growth' across the UK. The partnerships are seen as a key step towards achieving this goal, with UKEF playing a pivotal role in supporting British innovation and job creation.