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UK offers funding for green aviation projects, including SAF

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By Erin Krueger

January 28, 2026

Sustainable Aviation Fuels UK Business Policy 

The U.K. Department of Transport on Jan. 20 announced plans to offer up to £43 million ($59.53 million) to support green aviation projects, including those focused on clean fuels and zero-emission aircraft.

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Drax Group plc on Jan. 26 announced the launch of its Biomass Tracker, a new digital tool that provides greater visibility into the journey our woody biomass takes through the company’s global supply chain.

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LanzaTech Global Inc., a carbon recycling company, on Jan. 22 announced the closing of the sale and issuance of shares of its common stock to a group of leading investors, including new investor, SiteGround, for gross proceeds of $20 million.

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EcoCeres has officially launched its state-of-the-art renewable fuel facility in Pasir Gudang, Johor, Malaysia, marking a historic milestone as the country’s first sustainable aviation fuel (SAF) production plant.

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The White House Office of Management and Budget on Jan. 23 concluded its review of a proposed rule to implement guidance for the 45Z clean fuel production credit, according to information posted to the agency’s website.

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President Donald Trump on Jan. 23 signed an appropriations bill that includes language on biomass energy and sustainability. Explanatory statements published by Congress regarding the legislation included guidance on SREs and SAF.

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The USDA’s Rural Business Cooperative Service on Jan. 14 sent a letter to agency staff implementing a 90-day administrative pause on the acceptance, processing and awarding of loan note guarantees for biodigester projects.

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Clean Fuels Alliance America on Jan. 26 sent a letter to President Donald Trump highlighting the biodiesel, renewable diesel and SAF industry’s contribution to U.S. energy security and rural prosperity.

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SAFFA Fund I LP, an investment fund managed by Burnham Sterling Asset Management LLC, and SAF One Energy Management Ltd. have announced an investment of up to $30 million by SAFFA in a SAF One project, breaking ground in 2026.

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Kemvera on Jan. 21 announced it has completed the process design package for its planned 50,000 metric tons per year commercial-scale plant. The company’s technology can convert ethanol into drop-in chemicals.

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Renewable energy company Drax has selected ANDRITZ as the sole supplier of wear parts for its biomass pellet production facilities across North America. The supply agreement runs through September 2029.

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EnviTec Biogas on Jan. 21 announced the newly completed biogas and gas upgrading plant in in Soncino near Cremona, Italy, is feeding now 237 Nm³/h (250 Sm³/h) of biomethane into the public gas grid.

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The New Mexico Environmental Improvement Board on Jan. 22 unanimously adopted regulations implementing a Clean Transportation Fuel Program, making New Mexico the fourth U.S. state to adopt a clean fuel standard.

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The foundation is strong for expansion of biodiesel, renewable diesel and SAF in the U.S., but to build on the growth of recent years, producers and stakeholders must remain united, according to Clean Fuels Alliance America CEO Donnell Rehagen.

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Clean Fuels Alliance America recognized John Deere and R.W. Beckett Corp. for their outstanding contributions in advancing biodiesel for heavy-duty equipment and renewable heating fuels during the 2026 Clean Fuels Conference.

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ENGIE announced on Jan. 21 a 10-year biomethane purchase agreement (BPA) with PepsiCo U.K., the first of its kind for the U.K. food and drink industry and a first for PepsiCo across Europe, the Middle East and Africa (EMEA).

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Anaergia Inc., through its subsidiary Anaergia S.r.l., has been awarded project contracts for Andujar and Arjona with D.B. Andalucia, a special purpose company developing projects in the renewable sector in Spain.

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The planned merger between Union Pacific and Norfolk Southern hit a snag on Jan. 16 when the Surface Transportation Board issued a unanimous decision finding that the merger application is incomplete.

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Perpetual Next USA has announced plans to develop three additional biomass-to-biomethanol production facilities in the Southeastern U.S. Each facility will process 1 million tons of sustainably sourced biomass feedstock per year.

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Viridi Energy on Jan. 14 announced the successful sale of its first investment tax credits (ITCs) under Section 48 related to Viridi’s landfill gas-to-RNG project at Magnolia Landfill in Baldwin County, Alabama.

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Biomass Magazine has announced the addition of the North American Biocarbon Conference to the 2026 International Biomass Conference & Expo, expanding the event’s scope to include the full value chain of carbon-negative and carbon-smart technologies.

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Syzygy Plasmonics on Jan. 20 announced a binding six-year sustainable aviation fuel (SAF) offtake agreement between its subsidiary, SP Developments Uruguay S.A., and Trafigura Pte Ltd., a market leader in the global commodities industry.

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The U.K. remains the largest global consumer of imported wood pellets, with imports for 2025 estimated at 9.6 million metric tons, up 3% when compared to 2024, according to a report filed with the USDA Foreign Agricultural Service.

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Waga Energy has been awarded financial aid of C$15 million ($10.8 million) from Quebec's Ministry of Economy, Innovation, and Energy for its renewable natural gas (RNG) production project at the Hébertville-Station landfill site in Quebec.

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As global leaders prepare to convene for the World Economic Forum Annual Meeting 2026, the Business Aviation Coalition for SAF is encouraging aircraft operators and delegations to contact their fuel providers and FBOs immediately to secure SAF.

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The Colorado Air Quality Control Commission in late 2025 adopted new regulations that will require more of the state’s municipal solid waste (MSW) landfills to install gas collection and control systems.

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EverGen Infrastructure Corp. on Jan. 16 announced that the 20-year biomethane purchase agreement previously entered into between FortisBC Energy Inc. and EverGen’s wholly owned subsidiary, Fraser Valley Biogas Ltd., is now in effect.

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CHAR Technologies Ltd. on Jan. 14 announced The BMI Group has committed C$10 million toward the development of the Espanola biocarbon project, which is expected to have the capacity to produce 50,000 metric tons of biocarbon annually.

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Lane County, in partnership with Emerald People’s Utility District, has selected Waga Energy to build, own, operate, and maintain a renewable natural gas (RNG) production unit at the Short Mountain Landfill in Eugene, Oregon.

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Cathay is welcoming the release of Igniting the SAF Market: Policy Pathways for Scaling Sustainable Aviation Fuel in China, a research study published by Peking University’s National School of Development in late 2025.

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