UKEF opens new financing route for sustainable fuel and future aircraft

UK Export Finance has broadened its support for sustainable aviation fuel projects and signed new cooperation agreements covering electric aircraft and international aerospace exports, extending the export credit agency’s role across emerging aviation technologies.

UKEF will widen its eligibility criteria so that more UK-based sustainable aviation fuel projects can be considered for financing. The change is intended to help developers secure the capital required to construct and scale production facilities, where high upfront costs and long development periods can make purely commercial funding difficult to obtain.

The agency also signed agreements with Turkish Aerospace and Bristol-based Vertical Aerospace during the Farnborough International Airshow.

Under its memorandum with Turkish Aerospace, UKEF may consider supporting export contracts to third-country markets for up to 100% of their value, provided at least 20% of the relevant content is sourced from UK suppliers. The arrangement builds on an earlier framework agreed between UKEF and Turk Eximbank in May.

The agreement with Vertical Aerospace establishes a framework to support the company’s future export plans as it develops electric vertical take-off and landing aircraft. Vertical said access to an export-finance framework could help British-designed aircraft compete for international orders as the company moves towards production.

Sustainable aviation fuel can reduce lifecycle greenhouse-gas emissions by as much as 80%, depending on the fuel and production method. The UK government estimates that domestic low-carbon fuel production could support up to 15,000 jobs and contribute £5bn to the economy by 2050. These figures are government projections rather than guaranteed outcomes.

The measures follow a separate US$1bn, approximately £750m, UKEF framework with GE Aerospace. That arrangement is designed to provide airlines with more predictable financing for engine maintenance performed at GE facilities in Wales and Scotland.

Together, the announcements show UKEF moving beyond conventional support for completed aircraft exports. Its financing tools are increasingly being used to influence where components are sourced, help new aviation technologies reach overseas markets and mobilise investment into production infrastructure.

The effectiveness of the SAF initiative will depend on the individual projects presented and the commercial terms UKEF can support. However, opening additional financing routes may help bridge the gap between policy commitments and the capital required to create a commercially viable UK supply base.