Heathrow Raises 2026 SAF Incentive Target to 5.6%, Backed by £80 Million for Airlines

UK hub sets target 2% above the government mandate, offering airlines £650 per tonne to close the cost gap with conventional jet fuel

Link copied to clipboard!

SAFpath News Desk

February 24, 2026

Summary: Heathrow Airport has raised its 2026 SAF incentive target to 5.6% of jet fuel uplift — 2% above the UK government mandate — making £80 million available to airlines to offset the cost premium. If achieved, the scheme could deliver around 350,000 tonnes of SAF and cut emissions by approximately 600,000 tonnes.

Heathrow Airport has raised the bar on its annual SAF incentive scheme, setting a 2026 target of 5.6% SAF as a share of total fuel uplift — 2 percentage points above what the UK government’s SAF mandate requires. The airport is backing the target with £80 million (approximately $110 million) to help airlines absorb the cost gap between SAF and conventional jet fuel.

Now in its fifth year, Heathrow’s SAF incentive programme has become one of the largest airport-led mechanisms for accelerating fuel switching in the world. The airport claimed that 17% of global SAF supply in 2024 was consumed at Heathrow — a figure that underscores the outsized role a single hub can play in pulling demand through the supply chain.

How the Incentive Works

The 2026 scheme operates through Heathrow’s existing charges infrastructure. The airport collects the incentive pot via its departing passenger charge, then redistributes it back to participating airlines as credits against their Heathrow charges account.

For 2026, Heathrow has assumed a SAF premium of £1,300 ($1,750) per tonne over conventional jet fuel. The incentive covers 50% of that premium — £650 per tonne — up to a maximum cap per airline. A separate pot is available for cargo operators.

At 5.6% uplift, around 350,000 tonnes of SAF would be consumed across the year, with a potential emissions reduction of approximately 600,000 tonnes of CO₂ — equivalent to more than 950,000 economy-class return flights between London and New York JFK.

A Progressive Roadmap

Heathrow is also signalling its longer-term ambition. The airport is targeting 11% SAF as a share of all jet fuel by 2030 — one percentage point above the UK government’s 10% mandate for the same year.

“Heathrow is leading the way globally,” said Matt Gorman, Director of Sustainability. “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 Bigger Picture

Airport-level incentives like Heathrow’s play a distinct role in the SAF ecosystem. While government mandates set floors, they do not directly address the cost differential that remains the primary barrier to airline purchasing. By subsidising the premium through the passenger charge mechanism, Heathrow converts latent airline willingness into actual demand — without requiring airlines to absorb the full price gap from their own margin.

Source: https://www.greenairnews.com/?p=8597

THE SAF EXECUTIVE BRIEF

Policy shifts and regulatory updates.

Technology breakthroughs and market moves.

One concise read, every other week.

What to Read Next

Newsom Proposes SAF Tax Credit Worth Up to $300M a Year. California's Own Analysts Say Reject It.

A $1-$2 per gallon production credit for California refiners would divert diesel excise taxes earmarked for road repair, with Phillips 66 as the primary beneficiary.