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Advanced Fuels Fund

About the fund

The UK Government’s October 2021 Net Zero Strategy laid out a commitment to:

“Become a leader in zero-emission flight, kick-starting commercialisation of UK sustainable aviation fuels (SAF) … to enable the delivery of 10% SAF by 2030”

The UK Government has since announced its ambition of having at least 5 commercial scale SAF plants under construction in the UK by 2025.

To support these aims, the Advanced Fuels Fund was launched on 19 July 2022 by the Department for Transport (DfT). The second application window opened on 30 March 2023 and a new third application window opened on 07 February 2025. The Advanced Fuels Fund has competitively allocated £135 million in grant funding to support UK advanced fuels projects until 31 March 2025 and aims to competitively allocate an additional £63 million in grant funding to support UK advanced fuel projects until 31 March 2026.

Aviation Fuel

Delivered by

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E4T

About the AFF

The key objectives of the Advanced Fuels Fund are to:

  • Kickstart the UK advanced fuels sector with the commercial deployment of innovative fuel production technologies that are capable of significantly reducing near-term UK aviation emissions.
  • Broaden and strengthen the UK project pipeline, getting as many UK projects as possible to an "investment ready" state.
  • Support the advancement of a diverse range of technology routes to SAF and other advanced fuels.

Fig 1. Project lifecycle stages and the Advanced Fuels Fund scopeThe Advanced Fuels Fund will provide grant funding to first-of-a-kind (FOAK) commercial and demonstration-scale projects in the UK at all development stages up to construction starting, including “Feasibility”, “Pre-front-end engineering and design” (Pre-FEED)”, “Front-end engineering and design” (FEED) and up to 50% of eligible project costs during the “Detailed Design” and “Procurement of Main Equipment” stages within “Engineering, Procurement & Construction” (EPC). Grant funding has been allocated across five successful projects from the first application window and across nine successful projects from the second application window. DfT is committed to allocating up to an additional £63 million to successful applicants under the third application window. A sub pot of 50% of the third window funds will also be available specifically to support projects that use CO2 (point source or direct air capture) as their main carbon source in fuel production.

Applicants to window 3 must submit their completed application along with required supporting documents to AFF@ricardo.com before 16.00 (GMT) 28 March 2025. Receipt of all applications will be acknowledged by email. It will not be possible to accept late applicants.

A webinar launch event will be held in February 2025 following the opening of Window 3. The event will give an overview of the competition covering:

  • The main assessment criteria and minimum requirements.
  • Key dates and deadlines.
  • The application form and appendices.

Applicants will have the opportunity to ask questions during this session. To register your interest for this event please contact AFF@ricardo.com. The presentation, recording and Q&As from the launch event will be shared after the event.

Window 3 of the Advanced Fuels Fund is open to applicants until 16.00 (GMT) on 28 March 2025.

Table 1 outlines the key dates and stages of the Advanced Fuels Fund, from initial launch to the end of the competition’s Funding Period. These are planned but may be subject to change.

Table 1. Key Dates

Date Stage
19 July 2022 Window 1 open for applications
16:00 BST 14 September 2022 Window 1 application deadline
22 December 2022 Announcement of winners and start of Funding Period for Window 1 projects
30 March 2023 Window 2 open for applications
16:00 BST 7 June 2023 Window 2 Application deadline
17 November 2023 Announcement of winners and start of Funding Period for Window 2 projects
07 February 2025 Window 3 open for applications
16:00 (GMT) 28 March 2025 Window 3 application deadline
31 March 2025 End of Funding Period for Window 1 and Window 2 winning projects
June 2025 Announcement of winners and start of Funding Period for Window 3 projects
31 March 2026 End of Funding Period for Window 3 winning projects

Applicants must meet the eligibility criteria outlined in the guidance document in order to be eligible for funding. If you are unsure if you meet the criteria, please contact AFF@ricardo.com.

The Advanced Fuels Fund’s third application window will be is administered and managed on behalf of the DfT by their delivery partners Ricardo and ERM. DfT are yet to appoint a delivery partner for the application assessment and awardee monitoring phases. DfT retains overall responsibility for the execution, eligibility and award decisions, contract terms and payments throughout.

A fair and competitive assessment process will be assured, including a rigorous process to manage any direct or perceived conflict of interest that may arise from a personal/working relation between an applicant and one of the delivery partners.

To ensure you are informed of all the latest news and updates in relation to the competition, please register for our mailing list by contacting AFF@ricardo.com.

Please email AFF@ricardo.com if you have any questions when filling in your application to the Advanced Fuels Fund. Responses relevant to other potential applicants will be posted on this website weekly during the application window.

Please note that negotiation of the grant terms & conditions will not be possible. However, should you identify any element that prevents you from applying, please inform us at AFF@ricardo.com.

Window 2 materials:

Ricardo Group Action 009

Window 1 Winning organisations

Based in the Industrial Cluster at Teesside, the project is developing a commercial scale plant that uses gasification and Fischer-Tropsch technology to convert black bin bag waste into sustainable aviation fuel (SAF). The plant is expected to be operational in 2028 and produce 86.6 kt/y of SAF when at full operational capacity.

Award: £11,001,000

Based in Port Talbot, South Wales, the project is developing a commercial scale plant that converts steel mill off-gases into ethanol and then uses alcohol-to-jet technology to produce sustainable aviation fuel (SAF). The plant is expected to be operational in 2026 and produce 79kt/y of SAF when at full operational capacity.

Award: £24,960,843

This project is developing a large demonstration plant that uses power-to-liquid technology to convert carbon dioxide from a fossil gas-powered electricity plant and hydrogen made from renewable electricity into sustainable aviation fuel (SAF).

Award: £2,523,094

Based in Ellesmere Port, Cheshire, the project is developing a commercial scale plant that uses gasification and Fischer-Tropsch technology to convert black bin bag waste into sustainable aviation fuel (SAF). The plant is expected to be operational in 2027 and produce 83.7kt/y of SAF when at full operational capacity.

Award: £16,764,000

Based in Immingham, Lincolnshire, the project is developing a commercial scale plant that uses gasification and Fischer-Tropsch technology to convert black bin bag waste into sustainable aviation fuel (SAF). The plant is expected to be operational in 2028 and produce 37.4kt/y of SAF when at full operational capacity.

Award: £27,000,000

Window 2 Winning organisations

Based in Teesside, the project is developing a demonstration plant that uses pyrolysis and hydrotreatment technology to convert sawmill and forestry residues into sustainable aviation fuel (SAF). The plant is expected to be operational in 2026 and produce 2.6kt/y of SAF when at full operational capacity. 
 
Award: £4,484,000 

Based in Teesside, the project is developing a commercial scale plant that uses power-to-liquid technology to convert biogenic CO2 and green hydrogen into SAF. The plant is expected to be operational in 2028 and produce 67.7kt/y of SAF when at full operational capacity.  
 
Award: £12,341,000 

Based in the Solent, the project is conducting a feasibility study into a commercial scale plant that uses gasification and methanol-to-jet technology to convert non-recyclable waste into sustainable aviation fuel (SAF). The plant is expected to be operational in 2030 and produce 179kt/y of SAF when at full operational capacity. 
 
Award: £6,065,000

Based in Sheffield’s Translational Energy Research Centre, the project is developing a demonstration plant that uses power-to-liquid technology to convert biogenic CO2 and green hydrogen into sustainable aviation fuel (SAF). The project also includes the design of a commercial scale plant, expected to be operational in 2026 and produce 7.4kt/y of SAF when at full operational capacity. 
 
Award: £2,814,000

This project is developing both a demonstration production module operating in Orkney and a commercial scale plant that uses power-to-liquid technology to convert biogenic and direct air capture CO2 and green hydrogen into sustainable aviation fuel (SAF). The commercial scale plant is expected to be operational in 2026 and produce 6.1kt/y of SAF when at full operational capacity.  
 
Award: £3,492,100 

  • Based in the Industrial Cluster at Teesside, the project is developing a commercial scale plant that uses gasification and Fischer-Tropsch technology to convert biogenic and non-biogenic wastes and residues into sustainable aviation fuel (SAF). The plant is expected to be under construction in 2025, operational in 2028, and produce 124.2kt/y of SAF when at full operational capacity.
  • This plant was supported in earlier development stages by the Green Fuels, Green Skies competition that made £15m available over the 2021/22 financial year.
  • Alfanar was also supported in the first window of the Advanced Fuels Fund, as above. Their second window award is focused on the third funding year for activity that is not covered by their first window award. 
     
    Award: £8,664,000 

This project is developing a demonstration plant that uses power-to-liquid technology to convert direct air capture CO2 and green hydrogen into sustainable aviation fuel (SAF). The plant is expected to be operational in 2027 and scale up to 12kt/y of SAF when at full operational capacity.
 
Award: £1,376,000 

Based in Wilton at Teesside, the project is developing a commercial scale plant that uses pyrolysis and ethanol-to-jet technology to convert agricultural and wood waste into sustainable aviation fuel (SAF). The plant is expected to be operational in 2025 and produce 2.7kt/y of SAF when at full operational capacity. 
 
Award: £9,063,015

Based in Teesside, the project is developing a commercial scale plant that uses power-to-liquid technology to convert carbon dioxide and green hydrogen into sustainable aviation fuel (SAF). The plant is expected to be operational in 2026 and produce 14kt/y of SAF when at full operational capacity. 
 
Award: £4,721,000

Background

The competition provides grant funding to first-of-a-kind (FOAK) commercial and demonstration-scale projects in the UK at all development stages up to construction starting, including:
  • parts of engineering, procurement and construction (EPC)
  • front-end engineering and design (FEED)
  • pre-front-end engineering and design (Pre-FEED)
  • feasibility study
This grant funding will directly contribute towards to the establishment of a UK SAF industry. Research indicates that by 2035, the SAF sector could generate a gross value added of up to £1.8 billion annually and support up to 10,000 jobs.
This competition builds on the work of previous Department for Transport industry competitions, including the Advanced Biofuels Demonstration Competition (ABDC), the Future Fuels for Flight and Freight Competition (F4C) and the Green Fuels, Green Skies (GFGS) competition. All of which aimed to unlock future environmental and economic benefits that the advanced fuels industry can bring to the UK.
The Advanced Fuels Fund is being delivered with the support of Ricardo Energy and Environment and ERM.