London Heathrow Airport expands its Sustainable Aviation Fuel incentive scheme

London Heathrow Airport (LHR) has revealed an expansion of its innovative carbon reduction programme for the fourth consecutive year. In 2025, £86m will be allocated to airlines through the airport’s Sustainable Aviation Fuel (SAF) incentive scheme, aiming to achieve 3% of aviation fuel used at LHR being SAF, equivalent to 187,000 tonnes. LHR remains at the forefront of SAF adoption in the UK, with its incentive set 1% higher than the national mandate. The SAF mandate officially came into effect on 1 January 2025.

Director of Carbon Strategy, Matt Gorman said: “Sustainable Aviation Fuel is no longer a future promise—it’s a proven solution that is powering flights worldwide. Our SAF incentive scheme, part of our Connecting People and Planet sustainability strategy, has made significant progress and we’re now exploring options to set a long-term incentive signal to 2030. We are delighted that Government has moved so quickly to legislate the SAF Mandate. We must now accelerate legislation for the SAF Revenue Certainty Mechanism to ensure we can build a domestic industry that will help decarbonise and drive economic growth.” 

What is Sustainable Aviation Fuel and LHR’s scheme to reduce its emissions?

SAF, a fuel alternative to traditional fossil-based kerosene, can cut lifecycle carbon emissions by 70%¹ on average by utilising feedstocks such as used cooking oil and other waste materials. The scheme encourages airlines to switch to SAF by approximately halving the price gap between kerosene and its cleaner alternative, making SAF more commercially viable for airlines. In 2025, the scheme aims to reduce lifecycle carbon emissions from flights by over 500,000 tonnes². This is equivalent to over 800,000³ economy class passengers round trips from LHR to JFK. 

The 2025 incentive aims to align with LHR’s target to be 1% above the UK mandate in 2030: achieving 11% SAF use at the airport. Integrating SAF into the fuel supply is a crucial step in the airport’s journey toward achieving net-zero carbon emissions by 2050.  

¹ According to the UK Government SAF emits on average 70% fewer greenhouse gas emissions than using fossil jet fuel on a lifecycle basis. Reference to: Sustainable aviation fuel initiatives – GOV.UK
² Based on lifecycle carbon savings of 70%. The UK SAF mandate will require that SAF achieve a minimum lifecycle carbon intensity reduction of 40% compared to conventional fossil jet fuel. On average, the SAF used at LHR in 2023 reduced fuel carbon emissions by over 90% over its lifecycle. Source: LHR’s 2023 carbon footprint (page 65): 2023_Heathrow_Sustainability_Report.pdf
³ Calculated using the ICAO Carbon Emissions Calculator which states one passenger round trip LHR-JFK equates to 618kg. ICAO Carbon Emissions Calculator (ICEC)