UK Export Finance has announced measures at the Farnborough International Airshow to support growth and decarbonisation in the aerospace sector.
The export credit agency said it will broaden its eligibility criteria so it can consider a wider range of financing options for UK-based sustainable aviation fuel projects. The change is intended to open the door to greater investment in the sector.
UKEF also signed agreements with Turkish Aerospace and British electric air taxi manufacturer Vertical Aerospace. It said the partnerships are aimed at helping UK aerospace innovation reach global markets and supporting next-generation aircraft.
The government said sustainable aviation fuel is central to decarbonising aviation, with some fuels capable of reducing lifecycle greenhouse gas emissions by up to 80%. It also said UK low-carbon fuel production could support up to 15,000 jobs and add £5 billion to the economy by 2050.
The memorandum of understanding with Turkish Aerospace sets out a framework for enhanced cooperation on defence export projects to third-country markets. Under the arrangement, UKEF will consider support for export deals by offering up to 100% of contract value in return for at least 20% of content being allocated to UK suppliers.
The announcement forms part of UKEF’s stated support for cleaner aviation technologies, advanced air mobility and next-generation aircraft, alongside efforts to strengthen UK industrial competitiveness and high-value jobs.