The government says the funding could unlock investment and decarbonisation, and drive “millions” into the sector.

The scheme will open calls to UK businesses, researchers, and universities to compete for a share of the funding by demonstrating research and development potential that can accelerate clean aviation.

The HIA, made up of companies like easyJet, Rolls-Royce, Airbus, and GKN Aerospace, said the £43m will help ensure the UK is a leader in hydrogen-powered aviation.

The government has not indicated which specific technologies it is looking to support. However, it comes after it has firmed up its plans to support sustainable aviation fuels, including those made from green hydrogen.

Since last year, fuel suppliers have been obligated to supply 2% SAF in total jet fuel demand. That share will grow to 10% in 2030 and 22% in 2040.

The SAF revenue certainty mechanism is also due to pass into law this month.

This sets a strike price for SAF, which producers are guaranteed to earn with the government paying any shortfall to derisk production.

Many hydrogen players had praised the SAF mandate as a measure that can gradually and proportionally increase demand for clean hydrogen production.

Despite this policy momentum, clean hydrogen and SAF production in the UK remains at an early stage with no large-scale plants yet in operation.

This reveals a tension between ambition and delivery that the government hopes can be eased through this investment project.