The sustainable aviation fuel (SAF) sector in the UK is experiencing significant growth, bolstered by rising private investments and government initiatives such as the SAF mandate and the forthcoming Revenue Certainty Mechanism.

A recent analysis reveals that private funding and national policies are pivotal in fostering global advancements in sustainable aviation fuel, with a total of £14.7 billion allocated to SAF projects.

The report titled ‘Sustainable Aviation Fuel: Global Investment Analysis’ from Innovate UK Business Connect examines various sources of private investment, national policy frameworks, production methods, and the availability of feedstocks to identify emerging patterns and trends.

Michelle Carter, Head of Transport and Sustainable Aviation Fuel Innovation Programme Lead at Innovate UK Business Connect, said: “This initial analysis offers some insight into the evolving global SAF landscape. What is clear is the growing development of national policies or instruments is stimulating a positive investment ecosystem and strengthening the international effort to grow the SAF industry.”

What are the key findings of the analysis 

  • 46% of the total private investment went to the USA 
  • Globally, 41% of investors financed Alcohol-to-Jet plants 63% of global companies with SAF plants are in receipt of private investment 
  • 78% of global nations with SAF plants have a type of instrument or policy 
  • Investors span across the globe with a strong presence in Europe, Asia, North America, and Oceania   
  • Multiple investment types are supporting the global SAF industry, with venture capital (VC) representing 25% of all investors and corporate investment comprising 24% 

Michelle Carter, Head of Transport and Sustainable Aviation Fuel Innovation Programme Lead at Innovate UK Business Connect. Credit: Innovate UK Business Connect
The analysis also indicates that the UK SAF industry is expanding due to growing private investment, supported by government policies. Key initiatives include the SAF mandate, introduced on 1 January 2025, which aims for a 10% blend in aviation fuel by 2030.

Additionally, the UK government plans to implement a Revenue Certainty Mechanism in 2026 to mitigate technological risks related to non-HEFA (Hydroprocessed Esters and Fatty Acids) SAF plants. This measure, now with Royal Assent, is expected to boost private investment further.

Whilst most of the SAF plants in the UK in receipt of private investment are planned, there is evidence of increased investor confidence in UK SAF in response to Government policies.   

Check out the full analysis here.