At the Paris Air Show, UK Minister of Industry Sarah Jones announced a £255 million landmark investment package aimed at strengthening the UK’s aerospace sector’s role in turning global shifts towards greener aviation.
Funds drawn from both government and industry partners will accelerate the development of cutting-edge technologies, including hydrogen propulsion, lightweight composites and advanced manufacturing technologies.
The announcement places the UK aerospace industry at the forefront of sustainable aviation, supporting economic growth and thousands of highly skilled jobs outside of London.
The funding will be channelled through the Aerospace Technology Research Institute (ATI) program. It has already supported over 300 companies since its launch.
Jones commented: “This government is advocating for aerospace. This investment will not only bring economic growth, but will also push bills up to net zero in 2030 and increase bills to zero, two key pillars of the plan for change.
“This is the latest victory for UK aerospace in line with the launch of our industrial strategy, turbocharges the growth of the advanced manufacturing and defense sector, bringing them to new heights and bringing new and sophisticated work to every corner of the UK.”
Building an environmentally friendly future: from hydrogen flight to AI control
The 18 innovative projects benefited from this funding round, each focusing on reducing carbon emissions and advances in the UK’s aerospace manufacturing sector.
The highlights are:
Dragonfly (actuation Lab & Cranfield University) – Development of valves for managing ultra-liquid hydrogen, an important step towards zero-emission flights. Genacom (ICOMAT & The University of Sheffield) – A pioneer of curved composite structures that make aircraft lighter and more fuel efficient. DAA (Hover Inc.) – Create AI-powered avionics for autonomous and hybrid electric aircraft to improve flight safety and performance. SPARR (Zero Emissions Aerospace Ltd.) – Engineering hydrogen propulsion system for new aircraft classes including airships and electric VTOLs.
These projects reflect a dual focus in the UK aerospace sector. Reduce emissions and increase competitiveness through technical leadership.
A growing industry with the potential of the sky
Investment comes as the UK aerospace industry shows strong growth. According to recent ADS figures, the sector added £13.6 billion to the economy in 2024. This is nearly 50% increase from 2014.
Supporting more than 100,000 direct employment, the sector is the foundation of the country’s high-value manufacturing hubs, boasting £34 billion in sales and record-breaking R&D spending of £1.9 billion.
This upward trajectory is expected to be strengthened with government support and continued with increasing global demand for clean aviation solutions.
Paris Air Show: UK Innovation Spotlight
Minister Sarah Jones’ visit to the Paris Air Show, the world’s largest civil aerospace exhibition, highlights the UK’s global ambitions.
Touring the UK pavilion, she met major industry players such as Airbus, Rolls-Royce and GKN. The discussion focused on scaling UK-based manufacturing, expanding R&D investments, and promoting collaboration across the border.
Rolls-Royce Director of Research & Technology Alan Newby added: “Gas turbines are the engine for the growth of the UK economy. We welcome recognition of the important role of technology from governments in supporting both national and economic security.
“The government and industry investment in future gas turbine technology will help to increase the UK’s global competitiveness and ensure employment and exports in the UK decades ago.”
Small and medium-sized businesses and universities at the heart of transformation
Beyond the aerospace giants, this funding round supports a dynamic network of small and medium-sized businesses and academic institutions that play a key role in innovation.
Here are some notable university-driven collaborations:
Pace-AM (Arloyed & Brunel University) – Enhanced 3D printing technology for aluminum aerospace parts. AAIFC (Luffy AI & Southampton University) – Use AI to design a safer and adaptive flight control system. Sora Aero and Batwing (Sora Aviation, University of Bristol, Manchester & Bath) – Development of simulation tools and battery technology for electrical aircraft.
These initiatives represent a national commitment to reshaping air travel by bringing novel ideas to the mainstream by research institutions and startups.
Industrial Strategy and Roads for UK Aerospace
This investment is in line with the UK government’s future industrial strategy, which prioritizes high-growth sectors such as aerospace and defense.
A clear focus on sustainability, innovation and local job creation, the aerospace package embodies the government’s ambition to modernize UK industry.
As global aviation pivots towards Net Zero, the UK’s latest funding injection positions the aerospace sector as the leader in providing cleaner, quieter, smarter aircraft for tomorrow.
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