Up to £43m will be allocated to green aviation projects by the Government, with the production of low-carbon fuels expected to add up to £5bn to the economy by 2050.

The funding pledge comes as the Government oversees the controversial expansion of Heathrow, Gatwick and Luton airports.

Businesses, researchers and universities across the UK will be invited to bid for a share of the pot, with competitions launching from February to allocate the funding. The funding will go towards research and development projects that help to deliver net-zero aviation by 2050. The Civil Aviation Authority will develop regulations for the widespread use of hydrogen fuel through this investment.

Transport Secretary, Heidi Alexander, said: “Zero emission aircraft, hydrogen fuels and other emerging technologies are vital to reduce the climate impacts from flying and will enable us to deliver our airport expansion plans to boost connectivity and grow the economy. The technologies that will be developed with this funding, such as clean fuels and zero-emission aircraft, will play an important role in delivering on the Government’s vision to expand airports in line with climate targets, by decarbonising aviation and improving air quality.”

The investment could also be used for a trial to understand how contrails, condensation trails produced from aircraft exhausts that can contribute to global warming, could be avoided. Contrails can spread and persist in certain atmospheric conditions, trapping heat and warming the planet, contributing between over one per cent to global warming.

Some of the funding will also support the use and tracking of sustainable aviation fuels in regions like Africa and the Caribbean and improve their participation in schemes that offset global aviation emissions.

In further support for the sector, the Sustainable Aviation Fuel Bill, coming into force later this year, will provide long-term certainty for the SAF market by guaranteeing a set price for UK producers, helping the UK meet its climate targets. This is backed by an additional £63m to accelerate new SAF production plants, alongside £2.3bn through the Aerospace Technology Institute programme over the next decade to support aerospace innovation.

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