Electric aircraft which could be used for future flying taxi services, and hydrogen-powered planes will soon take to UK skies thanks to £7.3 million awarded to 8 pioneering British companies on 23 July 2026.
Successful projects will support a range of research on hydrogen and electric aircraft to deliver greener aviation through zero-emission flight, including driving forward progress on bringing flying taxis to UK skies, with projects involving Beta technology and Vertical Aerospace receiving up to £3.2 million funding to demonstrate how their next-gen aircraft can fit into commercial airport operations.
The funding – part of a wider £43 million package for next-generation aviation technology – will support the safe handling of electric and hydrogen-powered aircraft, unlock greener air travel for passengers while supporting growth and highly skilled jobs for people across the UK.
This follows Vertical showing off their 6-seater aircraft and a new UK manufacturing contract at Farnborough International Airshow, supporting highly skilled jobs in the South West and passenger services by 2029.
In a major vote of confidence for the technology, new government-backed research from the University of Birmingham has also today found that flying taxis could improve connectivity, support economic growth and help deliver cleaner aviation across the UK.
The government backed flying taxis and drones with a major £46.5 million investment announced in May to make medical deliveries a reality, assist police forces in combatting crime, and allow commercial companies to use delivery drones, with Amazon already running trials in Darlington.
Heidi Alexander, Secretary of State for Transport, said: “The next generation of flight is taking off in the UK. By powering up electric and hydrogen-powered planes, we’re bringing passengers closer to the flights of the future – while creating skilled jobs, backing UK businesses and spreading economic growth to all 4 corners of the country. We’re working hand in hand with industry to cut emissions, drive innovation, and ensure the UK remains one of the best places in the world to build, test and fly the aircraft of tomorrow.”
On Tuesday (21 July 2026) at Farnborough International Air Show, prominent airlines, airports, innovators and engineering firms discussed how cutting-edge technology will slash emissions and deliver an economic boost for the sector.
The meeting of the Jet Zero Taskforce Expert Group discussed how to reduce carbon emissions from flying, including through a £2.3 billion government commitment over the next decade to the Aerospace Technology Institute Programme, which will back cutting-edge research and bring the next generation of aircraft technologies, such as AI aircraft optimisation, to market.
Earlier this week, the UK Civil Aviation Authority (CAA) published the latest findings of its Department for Transport (Dft)-funded Hydrogen Challenge, outlining the progress made on demonstrating that hydrogen can be safely and effectively introduced as a zero-emission aviation fuel.
Backed by £1.9 million in government funding, the CAA programme brought together key organisations, such as Rolls-Royce, EasyJet, and Exeter Airport, to explore the practical challenges and opportunities of hydrogen-powered flight.
A further £2.5 million will be invested before March 2027, with major projects looking to use hydrogen to power ground vehicles, decarbonise airport operations, and test a hydrogen-powered jet engine suitable for commercial jets.
Last month, the government announced a new £219 million low-carbon fuels fund to drive forward plans to deliver net-zero aviation and boost sustainable aviation fuel production, supporting 15,000 jobs and adding £5 billion to the economy by 2050.
Source: Department for Transport UK