The project, which aims to build a sustainable aviation fuel (SAF) production facility in Teesside by 2027, is a partnership between BA and specialist firms Nova Pangaea Technologies and LanzaJet.

The announcement of the new funding from the government for Project Speedbird comes after recent investments from both BA and its parent company IAG this summer. The UK facility will use agricultural waste and wood residue as feedstocks to create SAF.

Carrie Harris, director of sustainability at BA, said: “We welcome the government’s investment and continued support in Project Speedbird which represents landmark new technology for UK SAF supply.  

“The UK has the potential to become a leader in the production of SAF, and this pioneering project is one step closer to this becoming a reality and a big moment for British Airways and UK SAF production more generally.”

The project will eventually produce 102 million litres of SAF per year from 2028, which will reduce CO2 emissions by 230,000 tonnes per year – the equivalent of around 26,000 domestic flights.

Project Speedbird was one of nine SAF projects to receive a total of £53 million in funding from the government on Friday (17 November), which hopes to ramp up production of the fuel to meet its mandate requiring airlines to use at least 10% SAF to power their flights by 2030.

Tim Alderslade, chief executive of Airlines UK, said: “Delivering a UK SAF industry this decade is a must if we are to drive down emissions from aviation, meet our 10% SAF mandate and reduce costs for consumers.

“We welcome this latest funding announcement, which will support a number of innovative projects across all parts of the UK.”