Heathrow Airport has announced an increase in its pioneering Sustainable Aviation Fuel (SAF) incentive scheme for the fourth consecutive year.
In 2025, a budget of £86 million will be allocated to airlines, aiming to encourage the use of SAF for 3% of all aviation fuel consumed at the airport.
This translates to approximately 187,000 tonnes of SAF. This value exceeds the UK’s mandated 2% SAF usage that came into effect on January 1st, 2025.
UK SAF Mandate
The UK’s mandated 2% SAF usage, which came into effect on January 1st, 2025, is a significant step towards decarbonizing the aviation sector. Here’s a breakdown:
What it means: UK law now requires airlines operating flights from UK airports to use at least 2% Sustainable Aviation Fuel (SAF) in their jet fuel.
Purpose: The mandate aims to stimulate the demand and production of SAF, a cleaner alternative to traditional fossil-based jet fuel. Manufacturers produce SAF from sustainable sources like used cooking oil, agricultural residues, and forestry waste, resulting in significantly lower carbon emissions compared to conventional jet fuel.
Phased Approach: The 2% mandate is the starting point. The UK government has set ambitious targets for increasing SAF usage:
- 10% by 2030: We expect a substantial increase in SAF usage within the next five years.
- 22% by 2040: A significant shift towards SAF is planned for the long term.
Heathrow Airport SAF Incentive Scheme
SAF, a renewable fuel alternative to traditional kerosene, significantly reduces lifecycle carbon emissions by up to 70% on average. Produced from sources like used cooking oil and other waste materials, SAF offers a cleaner and more sustainable option for air travel.
The Heathrow incentive scheme aims to bridge the price gap between SAF and conventional kerosene, making it more commercially viable for airlines to adopt.
In 2025, the scheme is projected to reduce lifecycle carbon emissions from flights by over 500,000 tonnes, equivalent to the emissions from over 800,000 economy class round trips between Heathrow and New York JFK.
This increased incentive aligns with Heathrow’s ambitious target of achieving 11% SAF usage by 2030, surpassing the UK mandate by 1%. Integrating SAF into the fuel supply chain is a crucial step towards the airport’s ultimate goal of achieving net-zero carbon emissions by 2050.
“Nature Positive Plan” and Updated Sustainability Strategy
Alongside the expanded SAF incentive, Heathrow Airport has published its “Nature Positive Plan.” The plan outlines a commitment to better understand and minimize the airport’s environmental impact.
This comprehensive plan focuses on:
- Nature-based solutions: Utilizing natural processes to address environmental challenges.
- Expanding nature networks: Creating and enhancing natural habitats around the airport.
- Improving biodiversity management: Implementing measures to protect and enhance biodiversity.
- Supporting nature-based carbon removal: Investing in initiatives that remove carbon from the atmosphere through natural processes.
- Adopting TNFD recommendations: Committing to transparently report on the airport’s impacts and dependencies on nature. This aligns with the Taskforce on Nature-related Financial Disclosures.
Furthermore, Heathrow Airport is updating its sustainability strategy, “Connecting People and Planet” (Heathrow 2.0).
Heathrow has incorporated more ambitious goals in areas where significant progress has been made. This includes reducing noise impacts, improving air quality, and supporting the local community.
Matt Gorman, Director of Carbon Strategy at Heathrow, gave comment on the situation. “Sustainable Aviation Fuel is no longer a future promise; it is a proven solution powering flights worldwide. Our SAF incentive scheme, a cornerstone of our ‘Connecting People and Planet’ sustainability strategy, has demonstrated significant progress.”
“We are now exploring options for a long-term incentive mechanism to ensure the continued growth of the SAF industry. The government’s swift action in legislating the SAF Mandate is commendable.”
“Now, we must accelerate the implementation of a SAF Revenue Certainty Mechanism to foster the development of a domestic SAF industry, decarbonize aviation, and drive economic growth.”
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