£250m for green aerospace projects ahead of Industrial Strategy
Source: gov.uk (2025-06-16)

UK aerospace will be boosted by more than £250m funding for cutting-edge aerospace tech projects to drive greener air travel, ahead of the Paris Air Show.

- Government announces over £250m joint industrial investment with industry for cutting-edge green aerospace tech projects at companies including Rolls-Royce, Airbus.
- Industry Minister announces latest win for UK aerospace at Paris Air Show in run-up to launch of Government’s modern Industrial Strategy, which will turbocharge growth in advanced manufacturing and defence.
- Announcement comes as new figures show UK aerospace sector supports 100,000 direct jobs and contributed £13.6bn to the economy in 2024, almost 50% up on 2014.
UK aerospace will be boosted by more than £250 million funding for cutting-edge aerospace tech projects to drive greener air travel, Industry Minister Sarah Jones will announce at the Paris Air Show today.

The combined funding from government and industry will drive forward the development of cutting-edge technologies that will help to secure the future of the UK’s aerospace sector. This includes advancements in gas turbines, hydrogen-powered flight and the use of laser technologies for large-scale aerostructure manufacturing.

It will help attract even more investment into the UK’s world-leading aerospace sector and support thousands of high-skilled jobs outside of London, delivering on the Government’s Plan for Change and helping grow the economy.

The announcement comes as new figures from the industry’s trade association ADS show the UK’s aerospace sector added £13.6 billion to the economy last year – an increase of almost 50 percent compared to 2014 – and supported 100,000 direct jobs.

It marks the latest win for the UK’s world-class aerospace sector in the run-up to the launch of the Government’s modern Industrial Strategy, which will target growth in the UK’s leading advanced manufacturing and defence sectors, and giving businesses the confidence they need to invest in the UK.

Industry Minister Sarah Jones said:

This government is backing aerospace. This investment will keep it at the forefront of innovation, not only delivering economic growth but boosting the charge to net zero 2030, two key pillars of our Plan for Change.

This is the latest win for British aerospace in the run-up to the launch of our Industrial Strategy, which will turbocharge growth in our advanced manufacturing and defence sectors to take them to new heights, bringing new high-skilled jobs to every corner of the UK.

During her visit to Paris Air Show – the world’s largest event for the civil aerospace sector – Minister Jones will tour the UK’s pavilion and meet with British companies exhibiting, before meeting with a wide range of leading aerospace companies, such as Airbus, Rolls-Royce and GKN.

The meetings will focus on encouraging even greater investment into British aerospace, promoting the UK’s world-class R&D offer on the global stage, and how government can support businesses to increase their manufacturing and operations in the UK.

Smaller and medium size businesses across the UK continue to benefit from the ATI Programme, with more than 302 receiving support since 2013, and another 19 investing over £22.8m in innovation in today’s announcement.

The UK aerospace sector had an annual turnover of £34 billion in 2024 and spent £1.9 billion on business R&D – a record level, driven by ongoing investment in both sustainable technology and market manufacturing technology to help ramp up UK production.

Rolls-Royce Director of Research & Technology Alan Newby said:

Gas turbines are an engine for growth for the UK economy. We welcome the recognition of the technology’s vital role from the Government in supporting both national and economic security.

Together, government and industry investment in future gas turbine technologies will enhance the UK’s global competitiveness and help secure UK jobs and exports for the decades ahead.

Airbus UK Chairman John Harrison said:

It’s terrific to see ATI funding allocated to projects like our ZeroE Development Centre (ZEDC) that will be built at Airbus Filton, and for DecSAM which builds on the industry’s additive manufacturing capabilities.

It’s initiatives like these that are absolutely critical to accelerating our decarbonisation journey and advancing sustainable, cutting-edge manufacturing. The continued ATI funding provides the UK aerospace industry with the confidence and stability it needs to fuel innovation.

Aerospace Technology Institute Chief Innovation Officer Paul Adams said:

Today’s funding announcement, including our dedicated small and medium-sized company grants, supports critical world-leading research – vital to ensuring UK aerospace companies continue to provide great jobs and growth in future, whilst delivering on our ambitious environmental goals. This is a huge vote of confidence in UK aerospace and in British aerospace companies.

Notes to editors

The ATI Programme is a joint government and industry investment. Its purpose is to competitively offer funding for research and technology development in the UK, to maintain and grow the UK’s competitive position in civil aerospace and accelerate the transition to net zero aviation.

The support announced today is from the £975 million between 2025 and 2030 allocated to the ATI Programme by the Government. This funding, matched by industry, provides continued stability for industry to invest in the UK, delivering economic growth, supporting high skilled jobs and advancing aviation’s challenging transition to net zero.

In total between 2013 and 2030, industry and government will invest over £5 billion developing transformational aircraft technology to secure and grow UK jobs and reduce harmful aviation emissions.

Specific investments announced today include:

ZEROe Development Centre Capital and Infrastructure Phase 2 (ZEDC) Led by Airbus, this project develops infrastructure for testing liquid hydrogen fuel systems and structural components to support zero-emission aircraft technologies. It builds on Phase 1 and enables research into cryogenic storage and fuel system performance. Total cost: £35 million

Aerothermal netZero TEChnologies (Aztec) Rolls-Royce and academic partners aim to improve engine efficiency and reduce CO₂ emissions for next-generation turbofan engines. Key innovations include improved low-speed fan, novel compressor, and ultra-highly loaded turbine. Total cost: £20.7 million

Digitally Enabled Competitive and Sustainable Additive Manufacturing (DecSAM) Airbus and partners are scaling up Laser Powder Bed Fusion Additive Manufacturing to make it more cost-effective and sustainable. The project focuses on validating this method for broader aerospace adoption. Total cost: £38 million

Hydrogen Efficient fuel cell InteGrated in a High Temperature System (HEIGHTS) Led by Intelligent Energy, this project develops a high-temperature hydrogen fuel cell system for aviation, targeting improved efficiency and reduced drag. It enhances cooling through direct water injection to shrink heat exchanger size by up to 40%.Total cost: £17 million

LATCAP Datum Tool Designs and Queen’s University Belfast will create a new innovation facility focused on CNC tooling for large composite structures. This will strengthen the UK’s capability in advanced manufacturing for aerospace. Total cost: £6.3 million

ISLAA GKN Aerospace and partners aim to advance large-scale additive manufacturing using laser metal deposition by wire. The project targets reduced costs, lead times, and emissions in aero-structure production. Total cost: £10.5 million

High Rate Manufacture Capital Acquisition (HRMCap) The National Composites Centre will establish open-access facilities to support high-rate manufacturing of large composite structures like wing covers. This will also benefit other aerospace applications such as fan cases and air mobility platforms. Total cost: £15.8 million

Hot End Technology Phase 3 (HT3P3) Rolls-Royce is developing advanced cooling technologies for engine hot sections to reduce fuel burn. These innovations will be tested under high-stress, real-world conditions to prepare them for service. Total cost: £34.3 million

REPLENISH Rolls-Royce and partners are creating advanced aftermarket services to improve maintenance and reduce costs for civil aeroengines. The project includes innovations in inspection, repair, and digital monitoring. Total cost: £33.1 million

EcoSuite Safran and collaborators are developing lightweight, sustainable materials and processes for next-gen Business and First Class aircraft seating. The goal is to cut weight, cost, and environmental impact while enhancing passenger experience. Total cost: £7.6 million

Liquid Hydrogen System Integration for Flight Testing (LH-SIFT) ZeroAvia and partners will develop and flight-test a liquid hydrogen fuel system on a commercial aircraft platform. This project aims to establish the UK as a leader in cryogenic aviation fuel systems. Total cost: £10.8 million

Full list of investments:

DRAGONFLY (Actuation Lab & Cranfield University) This project is developing a special valve to control the flow of super-cold liquid hydrogen for future zero-emission aircraft. It aims to support cleaner aviation by improving hydrogen fuel systems.

STAR (Advanced Manufacturing & partners) The STAR project is creating a new gas shielding device that removes the need for expensive argon chambers in manufacturing. This will lower costs and allow for the production of larger components.

REIT (AerospaceHV) REIT is building test facilities to help certify electrical systems used in high-voltage aerospace machines. This will support the development of future electric aircraft.

PACE-AM (Alloyed & Brunel University) This project is improving the use of strong aluminium alloys in 3D printing for aerospace parts. It aims to make aircraft components lighter and more efficient to produce.

HiRACOS (Carbon ThreeSixty & partners) HiRACOS is developing fast and efficient composite materials for use in next-generation aircraft. The goal is to speed up production for advanced air mobility and narrowbody planes.

LoCAP (CKPD) LoCAP is working on lightweight, non-metallic aircraft parts using new materials. This will help UK aerospace companies make better quality parts faster and at lower cost.

MACH2INE (Darvick & Cranfield University) This project is creating machines to test materials used in hydrogen-powered aircraft. It will help ensure these materials are safe and reliable for flight.

SPCLH2 (Enoflex Ltd. & partners) SPCLH2 is designing lightweight composite pipes to carry liquid hydrogen in aircraft, replacing heavy steel ones. These new pipes will reduce aircraft weight and improve fuel efficiency.

DAA (Hover Inc.) DAA is developing smart onboard computers with AI for future autonomous and hybrid-electric aircraft. These systems will improve safety and performance.

GENACOM (iCOMAT & University of Sheffield) GENACOM is creating new ways to design and build curved composite parts for aircraft using a patented process. This will result in lighter, more sustainable aerospace structures.

AAIFC (Luffy AI & University of Southampton) This project is using AI to make flight control systems safer and more adaptable. It opens up new design possibilities for future aircraft.

MAMBA (NEMA LTD & University of Nottingham) MAMBA is developing advanced magnetic bearings for aerospace use, which are more reliable and fault-tolerant. These will be tested in real-world turbo-compressor systems.

MB HeX FC (Qdot Technology & Atomik AM) This project is using metal 3D printing to improve radiators and heat exchangers in hydrogen fuel-cell aircraft. The goal is to make these systems more efficient and compact.

FEEAD (Scintam Engineering) FEEAD is improving a machining technique to safely remove stuck fasteners during aircraft engine maintenance. This will make repairs quicker and safer.

Sora Aero (Sora Aviation & Universities of Bristol and Manchester) Sora Aero is developing AI-powered tools to simulate how aircraft behave in flight. These tools will help design better zero-emission aircraft.

BatWing (Sora Aviation & University of Bath) BatWing is creating lightweight battery packs and new ways to safely attach them to aircraft wings. This supports the move to electric-powered flight.

MEFSVS (Ultima Forma & GKN Aerospace) MEFSVS is replacing heavy outer jackets on hydrogen fuel tanks with lighter, advanced materials. This will reduce aircraft weight and simplify manufacturing.

SPARR (Zero Emissions Aerospace Ltd. & partners) SPARR is developing a hydrogen propulsion system for various aircraft types, including airships and eVTOLs. It aims to cut emissions and lower operating costs.