Heathrow Increases Airline SAF Incentive to 5.6% for 2026

London Heathrow Airport (LHR) has significantly increased its incentive program for airlines using Sustainable Aviation Fuel (SAF), setting a new target for the fuel to account for 5.6% of total jet fuel used in 2026. This voluntary goal surpasses the United Kingdom's government mandate, signaling a more aggressive push towards aviation decarbonisation at one of the world's busiest hubs.

The initiative aims to accelerate the adoption of SAF, a renewable alternative to conventional jet fuel, by directly addressing its higher cost. According to an official press release, Heathrow will make over £80 million available in 2026 to help airlines cover the price premium. Achieving this ambitious target would represent a substantial step in reducing the airport's carbon footprint and positions Heathrow as a leader in driving the market for lower-emission fuels.

Exceeding National Targets

Heathrow's new 5.6% target for 2026 is notably higher than the 3.6% requirement set by the United Kingdom Sustainable Aviation Fuel (SAF) Mandate for the same year. The national regulation, administered by the Department for Transport (DfT), requires fuel suppliers to blend increasing amounts of SAF into the total UK jet fuel supply. The UK SAF Mandate began with a 2% requirement in 2025 and is scheduled to increase progressively to 10% by 2030 and 22% by 2040.

By setting a target two percentage points above the legal minimum, Heathrow is leveraging its position as a major airport to create additional demand. The airport has also outlined a longer-term ambition, aiming to increase SAF use to 11% of total fuel by 2030. This proactive stance reflects a growing industry trend where key aviation stakeholders are creating their own mechanisms to supplement government policy and speed up the transition away from fossil fuels.

Financial Commitment and Environmental Impact

The cornerstone of Heathrow's strategy is the substantial financial support offered to airlines. The £80 million incentive fund for 2026 is designed to bridge the cost gap between SAF and traditional kerosene, which remains a primary barrier to widespread adoption. This financial mechanism effectively reduces the operating cost penalty for airlines choosing to use the more expensive, sustainable alternative.

According to Heathrow's projections, reaching the 5.6% goal would equate to using approximately 350,000 tonnes of SAF at the airport in a single year. The potential environmental benefit is significant, with an estimated lifecycle carbon emissions reduction of around 600,000 tonnes. Sustainable Aviation Fuel can reduce lifecycle Greenhouse Gas (GHG) emissions by more than 70% compared to conventional jet fuel, according to UK Government data.

Industry Context and Future Outlook

Heathrow's efforts build upon its established role in the nascent SAF market. In 2024, the airport accounted for the use of 17% of the world's entire SAF supply, demonstrating its early leadership in this area.

Matt Gorman, Director of Sustainability at Heathrow, commented on the initiative in a press statement. “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... SAF is a key lever on aviation's journey to net zero by 2050, and a key element of Heathrow's Net Zero Plan. Our incentive delivers real progress today, as well as a future promise for tomorrow.”

The program underscores a critical industry trend: airports are becoming active participants in decarbonisation rather than passive infrastructure providers. By creating financial incentives, hubs like Heathrow can stimulate both supply and demand for SAF, helping to scale production and bring down costs over the long term.

Why This Matters

This move by Heathrow demonstrates how major airports can act as catalysts for environmental change, going beyond national regulatory minimums to accelerate the industry's transition to cleaner energy. By creating a multi-million-pound incentive scheme, the airport is directly tackling the economic barriers that hinder SAF adoption, setting a potential precedent for other global hubs to follow. This proactive approach could significantly influence the SAF supply chain and the pace of aviation's progress towards its net-zero emissions goals.

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