The UK’s Low Carbon Fuels Fund is set to support sustainable aviation fuel and other low carbon fuel projects moving towards production, with £219m of total funding announced and £93m available over the next two years.
Applications are due to open in mid-July 2026, with support focused on projects closest to actual production stage. For engineering employers and technical professionals, the important point is clear: sustainable aviation fuel is becoming an Energy Transition delivery market.
Key takeaways
- £219m fund targets low carbon fuel projects near production.
- £93m available over the next two years.
- SAF Mandate reaches 10% by 2030.
- Advanced routes need hydrogen, carbon and process skills.
- Delivery depends on transferable engineering talent.
Why this fund matters
The funding arrives alongside two other important market signals: the UK’s Sustainable Aviation Fuel Mandate and the proposed revenue certainty mechanism, which is designed to support investment in early projects.
Together, they give the UK SAF market a clearer route from ambition to delivery. The mandate creates demand, revenue support is intended to reduce price risk for producers, and development funding helps projects move through engineering, site development and pre-construction stages.
What sustainable aviation fuel is
Sustainable aviation fuel, usually shortened to SAF, is a lower carbon alternative to conventional jet fuel. It can be made from different feedstocks and blended with conventional jet kerosene for use in existing aircraft and fuel systems.
That compatibility is important. Aviation cannot decarbonise in the same way as road transport, where battery electric vehicles are already scaling. Long-haul aircraft still need high-density liquid fuel, which is why SAF has become one of the main near and medium-term routes for reducing aviation emissions.
The main UK-recognised production routes include:
- HEFA, which uses oils and fats such as used cooking oil.
- Advanced biofuel routes, which can use wastes, residues and biomass.
- Power-to-liquid fuels, which use low carbon power, hydrogen and a carbon source such as captured carbon dioxide.
Lifecycle emissions are measured across the full chain, including feedstock sourcing, production, transport, refining, blending and use. Under the UK SAF Mandate, eligible fuel must deliver at least a 40% lifecycle greenhouse gas reduction compared with fossil fuel.
Scaling SAF will need more than funding
The challenge is not whether SAF can be used. It already can. The harder question is whether the UK can produce enough of it, at the right quality, through commercially viable plants.
Current production remains limited. The SAF supply call for evidence states that advanced non-HEFA SAF is not yet being produced in significant quantities. It also notes that power-to-liquid SAF is commercially less established, with first-of-a-kind projects still needing to move through development, financing and construction.
That is why the industrial delivery angle matters. Future SAF supply will depend on projects involving gasification, Fischer-Tropsch synthesis, alcohol-to-jet, methanol-to-jet and power-to-liquid processes. These are process plants, not simple sustainability initiatives.
The mandate turns SAF into a long-term market
The UK SAF Mandate came into force on 1 January 2025. It requires UK fuel suppliers to supply an increasing share of SAF over time.
| Year | SAF obligation | Power-to-liquid obligation |
|---|---|---|
| 2025 | 2% | Not yet active |
| 2028 | Rising mandate | 0.2% |
| 2030 | 10% | 0.5% |
| 2040 | 22% | 3.5% |
The obligation sits with fuel suppliers, not directly with airlines. That matters because it pushes demand upstream into production, storage, blending, logistics and fuel assurance.
For workforce planning, the mandate creates a long demand curve. Projects will need designers and developers first, then construction and commissioning teams, then long-term operations and maintenance capability.
Where the UK SAF pipeline is taking shape
The current UK SAF project landscape is beginning to cluster around areas with existing industrial strengths. Teesside, the Humber, Stanlow, Port Talbot, Oxford and Norfolk all appear in the project pipeline, with routes spanning ethanol-to-jet, waste-to-SAF, methanol-to-jet, gasification, Fischer-Tropsch and power-to-liquid technologies.
| Project | Location | Route | Why it matters |
| Project Speedbird | Teesside | Ethanol-to-jet | Planned UK commercial plant with British Airways offtake. |
| Lighthouse Green Fuels | Teesside | Biomass residues, gasification and Fischer-Tropsch | FEED completed, with potential carbon capture integration. |
| Altalto Immingham | Humber | Waste-to-SAF | Planning consent secured, with operations targeted for 2030. |
| DRAGON II | Saltend Chemicals Park | Waste CO2 and green hydrogen to SAF | Around £600m investment proposed at an industrial chemicals site. |
| Stanlow Methanol-to-Jet | Stanlow | Renewable methanol and biomethanol to SAF | Uses existing terminals, storage, blending and fuel infrastructure. |
This geography is not random. These locations already have links to ports, chemicals, utilities, storage, heavy logistics and industrial energy infrastructure. That gives SAF projects a strong base, but it also creates regional competition for the same engineers, technicians and project delivery specialists needed across hydrogen, carbon capture, chemicals and wider Energy Transition work.
The workforce behind low carbon fuel production
SAF projects will need different skills at different stages. Early development depends heavily on process and chemical engineering. As projects move forward, demand broadens into construction, mechanical and electrical delivery, commissioning, controls, safety, quality and operations.
| Project phase | Likely skills and roles |
| Feasibility and front-end engineering | Process Engineers, Chemical Engineers, Project Engineers, techno-economic analysts |
| Process design | Senior Process Engineers, hydrogen specialists, rotating equipment engineers, utilities engineers |
| Planning and permitting | Environmental consultants, process safety leads, COMAH specialists, HSE professionals |
| Construction and installation | Construction Managers, Site Managers, Mechanical Fitters, Pipefitters, Welders, QA/QC inspectors |
| Electrical, control and automation | EC&I Engineers, Controls Engineers, DCS specialists, PLC specialists, systems integrators |
| Commissioning and start-up | Commissioning Engineers, validation teams, performance test engineers, operations readiness teams |
| Operations and maintenance | Plant Managers, Maintenance Engineers, Reliability Engineers, process operators, laboratory teams |
| Project controls and commercial | Planners, Quantity Surveyors, Cost Engineers, Contract Managers, Project Controls Managers |
This is where SAF becomes a recruitment story. It will compete for people who are already in demand across hydrogen, carbon capture, nuclear, grid infrastructure, advanced manufacturing and major industrial construction.
EngineeringUK says engineering and technology accounts for a quarter of all UK job adverts, and that up to 725,000 new jobs may be needed for net zero. The Engineering Construction Industry Training Board says the engineering construction industry could need more than 135,000 workers by 2030, with process engineers, project managers, mechanical fitters, electrical technicians, pipefitters and design technicians among the occupations most in demand.
Transferable skills will be central
SAF hiring should not be treated as a narrow aviation specialism. The strongest talent pools are likely to sit in adjacent industries.
The closest match is process and chemicals. These professionals understand continuous production, hazardous area design, control rooms, utilities integration, separations, process safety and regulated plant environments.
Refining, oil and gas, terminals and fuel logistics also offer strong overlap. Experience in storage, blending, pipelines, rotating equipment, inspections, shutdowns and operational reliability will be highly relevant as SAF projects move from development into delivery.
Hydrogen, carbon capture and power generation backgrounds will become more important as power-to-liquid and methanol-to-jet routes scale. These projects depend on electrolysis, renewable power interfaces, carbon sources, synthesis, high-integrity controls and energy management.
There is also a route in from waste management, advanced manufacturing, pharmaceutical, food and beverage, and wider industrial construction. The fit will vary by role, but quality systems, maintenance reliability, automation, environmental control and operations discipline all have value.
What employers should take from this
Employers should treat the Low Carbon Fuels Fund as a timing signal. Once projects move closer to production, the recruitment challenge will shift quickly from specialist design capability into broader delivery teams.
The highest pressure points are likely to include EC&I, commissioning, project controls, process safety and operations readiness. These are already competitive disciplines across other Energy Transition and major infrastructure programmes.
Early workforce mapping will matter. Employers need to identify which roles require direct SAF or fuels experience, which can be filled from adjacent process industries, and which will need structured upskilling.
What candidates should take from this
For candidates, SAF is a practical route into Energy Transition work without leaving heavy industry behind.
Relevant backgrounds include process manufacturing, refining, industrial gases, oil and gas, power generation, hydrogen, carbon capture, waste processing and major industrial construction.
Candidates should make transferable experience visible. That includes plant commissioning, hazardous process environments, control systems, utilities, shutdowns, fuel handling, process safety, quality assurance, environmental compliance and operations readiness.
Millbank’s perspective
SAF is becoming a clear Energy Transition workforce story. The projects are new, but many of the skills already exist in established engineering and industrial markets.
The employers who move early will have a stronger chance of securing the people needed before demand peaks. The candidates who understand how their skills transfer will be better placed to access new low carbon fuel opportunities as projects move from development into delivery.
For candidates: If your background is in process, chemical, EC&I, commissioning, construction or plant operations, send us your CV and speak to Millbank about where your skills could fit.
For clients and hiring managers: If you are planning workforce requirements for low carbon fuel, energy or industrial delivery projects, speak to Millbank about early talent mapping and specialist recruitment support.
FAQs
What is the UK Low Carbon Fuels Fund?
The Low Carbon Fuels Fund is a £219m funding programme designed to support low carbon fuel projects, including sustainable aviation fuel. The latest announcement confirms £93m is available over the next two years, with applications due to open in mid-July 2026.
Is the fund only for sustainable aviation fuel?
The fund is described as a low carbon fuels fund, but it has been launched in the context of sustainable aviation fuel and future SAF supply. The announcement says support will focus on projects closest to production.
What is sustainable aviation fuel?
Sustainable aviation fuel is a lower carbon alternative to conventional jet fuel. It can be made from different feedstocks, including wastes, residues, oils, hydrogen and captured carbon, depending on the production route.
When did the UK SAF Mandate start?
The UK SAF Mandate came into force on 1 January 2025. It starts with a 2% SAF obligation in 2025, rising to 10% in 2030 and 22% from 2040.
Who has to comply with the SAF Mandate?
The obligation falls on UK fuel suppliers, not directly on airlines. This is important because it creates demand across production, blending, storage, logistics and fuel assurance.
Which engineering skills are needed for SAF production?
SAF projects need process engineering, chemical engineering, mechanical engineering, EC&I, automation, commissioning, construction, project controls, quality, environmental compliance and operations skills.
Can engineers move into SAF from other sectors?
Yes. Strong transferable sectors include process and chemicals, refining, oil and gas, hydrogen, carbon capture, power generation, waste management, advanced manufacturing and major industrial construction.
Why should employers plan early for SAF workforce demand?
SAF projects will compete for many of the same skills already needed across other Energy Transition markets. Early planning helps employers identify transferable talent pools before projects reach peak hiring demand.
