Heathrow Boosts 2026 SAF Incentive 2% Above UK Mandate

London Heathrow Airport (LHR) will increase its Sustainable Aviation Fuel (SAF) incentive for 2026, targeting 5.6% total SAF usage for airlines operating at the hub. This move places Heathrow's goal two percentage points above the UK government's mandated level of 3.6% for the same year, signaling a more aggressive push towards aviation decarbonization.

Accelerating a Costly Transition

The initiative is backed by a fund of over £80 million, designed to help airlines bridge the significant price gap between SAF and conventional jet fuel. According to industry data from Johnson Matthey, SAF can cost between two and seven times more than traditional kerosene. By subsidizing this difference, Heathrow aims to stimulate demand and make cleaner fuels a more viable option for carriers. The 5.6% target would equate to approximately 350,000 tonnes of SAF, which could reduce carbon emissions by an estimated 600,000 tonnes, according to airport officials.

This enhanced incentive is part of Heathrow's broader strategy to lead in aviation sustainability. “Sustainable Aviation Fuel is not a hypothetical concept for the future, it's already producing real impact in 2026,” said Matt Gorman, Heathrow's Director of Sustainability. “Heathrow is leading the way globally, with 17% of the world's SAF supply in 2024 used at the airport.”

Regulatory Context and Supply Challenges

The UK's national Sustainable Aviation Fuel (SAF) Mandate provides the regulatory backbone for these efforts. The mandate, which began at 2% in 2025, requires a progressive increase in SAF blending, rising to 10% by 2030. Heathrow's internal goal is to reach 11% SAF usage by 2030, again outpacing the government's requirement.

Despite ambitious targets from airports and regulators, the primary challenge remains the limited global supply of SAF. The International Air Transport Association (IATA) projects that worldwide SAF production will reach 2.4 million tonnes in 2026. This figure represents just 0.8% of the industry's total jet fuel consumption, highlighting the significant production scale-up required to meet long-term decarbonization goals. Heathrow's incentive scheme is intended to create a stable demand signal for producers, encouraging further investment in SAF manufacturing capacity.

What Comes Next

The 2026 incentive scheme is a key milestone in Heathrow's Net Zero Plan. The airport and its airline partners will continue to work within the framework of the UK's SAF mandate, which will steadily increase requirements through 2030 and beyond. The success of such programs is critical for the aviation industry's goal of achieving net-zero carbon emissions by 2050.

Key Takeaways

• Targets 5.6% Sustainable Aviation Fuel (SAF) usage in 2026.
• Provides over £80 million to airlines to offset high SAF costs.
• Exceeds the UK's mandated 3.6% SAF level for 2026 by two percentage points.
• Aims to reduce carbon emissions by approximately 600,000 tonnes through the initiative.

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