Could your summer holiday be greener? Government invests £63m into more sustainable types of jet fuel
The cash will be shared by 17 British companies developing different types of "sustainable aviation fuel" (SAF), made from materials including forest cuttings, household rubbish, sugar beet or hydrogen gas.
Ministers said the funds could support 1,400 jobs, add £5bn to the economy and help the British industry get ahead as global demand for SAF soars in order to meet stricter climate targets.
But campaigners question how sustainable these fuels really are, saying the real answer is to deter "frequent flying".
They warn the materials needed for sustainable fuels are hard to come by and too expensive to ever scale up.
Industry says it needs this cash injection precisely in order to lower costs and grow, and global demand is booming.
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As of January, flights taking off from the UK must use 2% SAF in their fuel, under new government rules. This will gradually rise to 10% in 2030 and 22% in 2040.
But there have been alarm bells warning not enough SAF will be available to meet those targets.
The government says sustainable fuels cut emissions of greenhouse gases by 70% on average compared with kerosene over the course of its life, which includes producing it and burning it.
Aviation minister Mike Kane said: "We're not just backing brilliant British innovation, we're creating thousands of high-skilled jobs and positioning the UK at the forefront of the global sustainable aviation market."
He said the move would "kickstart economic growth, secure energy independence, and make Britain a clean energy superpower".
But campaigners say at best the fuels will reduce aviation emissions "by a tiny fraction of the amount needed", and are being used to justify "irresponsible levels" of airport expansion.
James Sutton, co-director of climate charity Possible, told Sky News they were not anti-investment, but that the SAF plans would not bring down emissions at the pace and scale necessary.
He said: "We need to cut those emissions immediately if we have any hope of hitting our climate goals, not just sit and hope for the best in a few decades time.
"The technology and investment required for SAF to displace kerosene entirely is simply not there yet, but policies aimed at reducing demand for flights and taxing frequent flyers, which will therefore cut emissions, are possible now.
"So that is what we need to focus on first and foremost."
The biggest winner in this round of funding was Stockton-on-Tees based Alfanar Energy, which will get £8m for converting waste wood from sawmills and forestry into SAF.
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