UKEF backs sustainable fuel to drive growth and cut emissions
UK Export Finance (UKEF) has announced a series of measures at the Farnborough International Airshow this week to drive growth and decarbonisation across the aerospace sector.
In a major step, UKEF will broaden its eligibility criteria so that it can consider a wider range of financing options for UK-based sustainable aviation fuel (SAF) projects, opening the door to greater investment in the sector.
The export credit agency also signed agreements with international aerospace leader Turkish Aerospace and British air taxi pioneer Vertical Aerospace to help UK innovation reach global markets.
Business, Innovation, Science and Trade secretary Jonathan Reynolds said: “This government is laser-focused on bringing good growth to every corner of the country, and today we’re wasting no time in getting on with the job.
“Aerospace is one of Britain’s great industrial success stories, supporting skilled jobs and innovation right across the UK, and this new support will harness the potential of not only our manufacturing base but our cutting-edge research and technology and deliver benefits for every postcode.”
UK Export Finance CEO, Tim Reid, added: “From cleaner aviation technologies to next-generation aircraft and advanced air mobility, these partnerships show how UKEF is helping British aerospace innovation reach global markets and supporting the industries that will shape the future of flight.
“Backing sustainable aviation fuel exports and strengthening our relationships with Turkish Aerospace and Vertical Aerospace, we are unlocking new opportunities for UK businesses across some of the world’s fastest-growing aerospace sectors, while strengthening innovation and jobs here at home.”
Sustainable Aviation Fuel (SAF) production
SAF is central to decarbonising aviation, with some fuels capable of reducing lifecycle greenhouse gas emissions by up to 80%. UK low-carbon fuel production could support up to 15,000 jobs and add £5 billion to the economy by 2050.
The government is committed to making the UK a global leader in SAF production, including by helping businesses access the finance they need to develop and scale new projects.
Turkish Aerospace
UKEF signed an MoU with Turkish Aerospace, one of Turkey’s leading defence companies, to establish a framework for enhanced cooperation on defence export projects to third-country markets.
Under this MoU, UKEF will consider support for Turkish Aerospace’s export deals by offering up to 100% of the contract value in return for at least 20% of content being allocated to UK suppliers.
This agreement builds on the MoU signed in May 2026 between UKEF and Turk Eximbank at the SAHA defence and aerospace exhibition in Istanbul, which established a broader framework for UK-Turkey cooperation on financing defence and export projects to third countries.
Turkish Aerospace CEO, PhD. Mehmet Demiroğlu, said: “Our collaboration with the United Kingdom represents a strategic step in strengthening Turkish Aerospace’s international partnerships. We believe that the Memorandum of Understanding signed with UK Export Finance will expand financing opportunities for global projects and further enhance our export capabilities.
“Built on our strong engineering expertise and a foundation of mutual trust, we expect this cooperation to create long term value for the aerospace and defence ecosystems of both countries.”
Vertical Aerospace
UKEF and Vertical Aerospace, a Bristol-based electric vertical take-off and landing aircraft company, formalised a framework for cooperation to support the company’s future export ambitions.
It forms part of a wider government support package for the UK aerospace industry and reflects UKEF’s commitment to supporting businesses that drive growth across all regions of the UK.
Vertical Aerospace interim chair, Ben Story, said: “Vertical was founded in the UK and is building one of the country’s most exciting new aerospace platforms. As the business scales toward production and export, this MoU with UK Export Finance is an important step in creating the financing framework that can help British-designed and British-built aircraft compete in global markets.”
Earlier in the week, UKEF signed a brand-new financial framework with GE Aerospace for $1bn (approximately £750m), to support airline engine maintenance at GE Aerospace’s regional sites in Wales and Scotland over the next five years. The partnership aims to provide commercial airlines with faster and more predictable financing options for engine repairs, while supporting local jobs and supply chains.