A Cambridge-based aerospace company will receive millions to work on a net zero aviation programme.
Chancellor of the Exchequer Jeremy Hunt announced investments in the UKʼs life sciences and manufacturing sectors.
Funding aims to speed up the transition to net zero aviation and support sectors where the UK is, or could be, world-leading.
Cambridge Airport-based Marshall Group will receive £40m to develop a new fuel system for zero emission aircraft.
As part of the investments, announced ahead of the Spring Budget, almost £200m of joint government and industry funding will go to aerospace research and development projects.
Mr Hunt said: "Weʼre sticking with our plan by backing the industries of the future with millions of pounds of investment to make the UK a world leader in manufacturing, securing the highly-skilled jobs of the future and delivering the long-term change our country needs."
Marshall Aerospace said the money would be used to develop and test a smart, connected liquid hydrogen fuel system for the next generation of zero emission aircraft.
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A further £96m is also being invested in Airbus-led projects, to develop more efficient wing designs and increase carbon fibre production rates for wing components, which aimed at reducing CO2 emissions and fuel burn.
Funding for these projects will be delivered through the Aerospace Technology Institute programme.