Heathrow Boosts 2026 Sustainable Aviation Fuel Incentive Above UK Mandate

London Heathrow Airport (LHR) has announced an enhanced incentive scheme for 2026, targeting a 5.6% usage rate for Sustainable Aviation Fuel (SAF) across the airport. This goal significantly surpasses the UK government's mandated level of 3.6% for the same year, positioning the hub as a key driver in the aviation industry's efforts to decarbonize. The initiative aims to accelerate the adoption of alternative aviation fuels by directly addressing the cost disparity between SAF and conventional jet fuel.

To support this ambitious target, Heathrow is making over £80 million available through its 2026 incentive program. This fund is designed to bridge the price gap for airlines, effectively lowering the financial barrier to using lower-emission fuels. Achieving the 5.6% target would equate to approximately 350,000 tonnes of SAF being used at Heathrow in 2026, resulting in an estimated carbon emissions reduction of around 600,000 tonnes. This move sends a strong demand signal to SAF producers and reinforces the airport's strategy to lead in aviation sustainability.

Regulatory Context and Ambition

Heathrow's initiative operates within the framework of the United Kingdom Sustainable Aviation Fuel Mandate (UK SAF Mandate), a policy overseen by the Department for Transport (DfT). According to the official government policy, the UK mandate requires a 2% SAF blend in 2025, rising to 3.6% in 2026 and progressively to 10% in 2030 and 22% by 2040. By setting a target 2 percentage points higher than the 2026 legal requirement, Heathrow aims to stimulate the market and demonstrate the viability of more aggressive decarbonization pathways.

The UK's mandate also includes specific provisions to encourage fuel diversity, such as a cap on SAF derived from the Hydroprocessed Esters and Fatty Acids (HEFA) pathway and a sub-mandate for Power-to-Liquid (PtL) synthetic fuels, which is set to begin in 2028. Heathrow's broad incentive scheme supports these national goals by encouraging the use of all certified SAF types.

Looking beyond 2026, Heathrow has also set a goal for 11% SAF use by 2030, again placing it ahead of the UK's 10% mandate for that year. Matt Gorman, Heathrow's Director of Sustainability, commented on the initiative's impact. “Sustainable Aviation Fuel is not a hypothetical concept for the future, it's already producing real impact in 2026,” he said. “Heathrow is leading the way globally, with 17% of the world's SAF supply in 2024 used at the airport. SAF is a key lever on aviation's journey to net zero by 2050, and a key element of Heathrow's Net Zero Plan.”

Industry Impact and Challenges

The primary challenge for widespread SAF adoption remains its high cost and limited global supply. Currently, SAF represents less than 0.1% of total global jet fuel consumption. Incentive schemes like Heathrow's are crucial for creating a stable, predictable demand that can encourage investment in new production facilities and technologies. By subsidizing the cost, airports can de-risk the transition for airlines and help scale the market.

This trend of major hub airports setting voluntary targets that exceed national mandates is becoming a key feature of the industry's environmental strategy. It allows airports to position themselves as sustainability leaders, attract environmentally conscious corporate clients, and build confidence among investors in the emerging SAF production sector. The use of SAF is calculated on a 'lifecycle' basis, which accounts for emissions from production to combustion. On average, SAF can reduce these lifecycle emissions by over 70% compared to traditional fossil-based jet fuel.

What Comes Next

The success of Heathrow's 2026 incentive will be measured not only by the volume of SAF uplifted but also by its influence on the broader European and global markets. The program's performance will provide valuable data on the effectiveness of airport-led incentive mechanisms in driving SAF adoption.

As the UK's SAF mandate continues to increase annually, the focus will intensify on securing a diverse and resilient supply chain. The development of advanced fuel pathways, including PtL, will be critical to meeting long-term targets and moving beyond feedstocks like used cooking oils that have supply limitations. The industry will be watching closely as the UK's PtL obligation begins in 2028, a key step in commercializing next-generation synthetic fuels.

Why This Matters

This development signals a proactive approach by a major aviation hub to accelerate decarbonization rather than merely complying with government regulations. For the aviation industry, it demonstrates a viable model for public-private collaboration, where airport-funded incentives can stimulate a nascent market. The move positions Heathrow to secure a significant portion of the world's limited SAF supply, creating a competitive advantage while sending a powerful demand signal to fuel producers that a long-term market exists for their product.

Access up-to-date commercial aviation news and airline industry developments via flying.flights. Get the latest updates on major hubs, regional terminals, and airport operations via the Airports section at flying.flights/airports.