Chancellor Rishi Sunak made the commitment as part of the National Infrastructure Review to support sustainable aviation fuels and zero-emission flights. 

Spending will be overseen by the Jet Zero Council, a public/private partnership.

“This will fund a one-year competition to support the development of a Sustainable Aviation Fuel demonstration and first-of-a-kind commercial plants,” the government said.

Airport Operators Association chief executive Karen Dee said: “Sustainable fuels are an essential part of aviation’s plans to cut aviation net carbon emissions to zero by 2050 alongside helping with air quality, as sustainable fuels have significantly lower particulate emissions.”

The document also proposed reforming UK airspace to cut noise and pollution.

Dee added: “Airspace modernisation will also be a vital part of our sustainable future, as the National Infrastructure Strategy acknowledges. In particular, it is expected to reduce overall noise impacts for communities around airports.

“We will work further with government on the funding for this vital project to ensure the current difficult financial climate for airports does not cause undue delays to its implementation.”