Seven industry-led projects will receive a share of £2 million to develop proposals for advanced fuels production plants, as part of the Government’s drive to reduce carbon emissions.

Proposals include the production of aircraft jet fuel from steel mill waste gases, and a project exploring the use of waste wood to produce a synthetic natural gas for HGVs.

This is part of the Future Fuels for Flight and Freight Competition, which was launched in April 2017 to encourage private sector investment in the development of advanced fuel production facilities in the UK.

Transport minister Jesse Norman said: “We are committed to reducing carbon emissions from transport to tackle climate change and make the sector as sustainable as possible.

“The funding commitment made through this competition will enable the development of this important set of technologies, paving the way for cleaner growth in the UK.

“Supporting projects like these is just part of our work to help ensure the UK transport sector is greener than ever.”

The aims of the competition are to increase domestic production of advanced low carbon fuels capable of reducing emissions from the aviation and HGV sectors.

Furthermore, it aims to stimulate investment and create jobs through the development of a prosperous domestic industry.

Applicants that receive Stage 1 funding will be invited to apply for a share of a further £20 million Stage 2 funding to help with construction.

The Stage 2 assessment will take place in December 2018 and the successful applicants will be announced in early 2019.

The successful bids are:

Organisation	Fuel type	Funding
Rika Biogas Technologies	Liquid biomethane	£103,034
Johnson Matthey	Kerosene, diesel and petrol substitutes	£178,000
Standard Gas	Synthetic natural gas	£178,000
LanzaTech	Kerosene and diesel substitutes	£410,000
Progressive Energy	Synthetic natural gas	£175,960
Kew Projects	Diesel substitute	£312,300
Velocys Technologies	Kerosene and petrol substitutes	£434,000