The project aims to produce 102 million litres of sustainable aviation fuel (SAF) annually, reducing carbon dioxide emissions by 230,000 tonnes per year.
The funding is expected to position the UK as a global leader in SAF production.
Project Speedbird plans to achieve full SAF production capacity by 2028, aligning with the UK’s mandate for at least 10% of jet fuel to be derived from sustainable sources by 2030.
Carrie Harris, Director of Sustainability at British Airways, said: “The UK has the potential to become a leader in the production of SAF and this pioneering project is one step closer to this becoming a reality and a big moment for British Airways and UK SAF production more generally.”
Sarah Ellerby, Chief Executive of Nova Pangaea Technologies, said: “Our first commercial-scale production facility will be the first of its kind in the UK, and will use wood residues and non-food derived agricultural waste as its feedstocks.
“Our partnership, Project Speedbird, will play a transformational role in decarbonising the aviation sector, as well as providing local employment opportunities in the North East.”