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Aviation: Alternative Fuels

Asked by Shivani RajaConservativeDepartment for TransportTabled Answered 29 June 2026UIN 12599

The question

To ask the Secretary of State for Transport, pursuant to the Answer of 22 June 2026 to Question 9696 on the Low Carbon Fuels Fund, what estimate the Department has made of the amount of private sector investment that will be leveraged by the £219 million available through the scheme.

Answered by Keir Mather

We expect the £219m of capital funding available through the Low Carbon Fuels Fund to be invested directly into progressing projects through the early lifecycle stages towards a Final Investment Decision, by contributing to development costs, whilst maintaining a pipeline of demonstration projects to diversify technology. Projects able to evidence match funding, such as private sector investment, will be scored preferentially during the assessment process and so have more likelihood of success. Until the bidding process is complete, we will not have a view on the level of private investment supported but for comparison the Advanced Fuels Fund leveraged £76.5m match funding against £198m allocated through grant funding.

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