Photo: Heathrow Airport
Heathrow Airport is becoming one of the largest SAF (Sustainable Aviation Fuel) users in the world and makes a stand for government support in this field. Despite its proven benefits, SAF is still hard to come by and too expensive to be used on a larger scale.
We’re hearing about SAF-related breakthroughs left and right, but this green alternative still comes at a high cost. Last year, Heathrow took a giant step in increasing the use of SAF, and is now taking that to the next level. However, all of this green jet fuel is imported, which is why the airport operator is also calling on government officials to step up and support the local SAF industry.
Green fuel for aircraft sounds great on paper. It works with existing aircraft without any technical modifications, helping reduce CO2 emissions at least by 70%. Best of all, it can be obtained from different sources ranging from used cooking oil to agricultural waste, which also makes it sustainable. But the harsh reality is that the SAF industry is still very young, with only a few producers globally, and a limited production capacity.
This translates to high costs that most operators aren’t happy to cover. Some airlines, like United or Lufthansa, have raised the bar with long-term SAF purchase agreements that are worth millions, but even those come with limitations. For example, United’s deal will only be implemented when Alder Fuel’s product is deemed entirely compatible with the airline’s specifications, and there’s no precise deadline for that.
As the largest airport in the UK and one of the busiest in the world, Heathrow took the plunge in 2022 by deciding to support airlines make the transition towards SAF. It was an industry-first across the globe, in the form of an incentive program. In a nutshell, Heathrow agreed to cover up to 50% of the extra costs. The airline operators who are participating in this scheme include United, Virgin Atlantic, KLM and IAG.
Apparently, that worked so well that Heathrow decided to increase the funding. This is expected to increase the use of SAF to 1.5%. This may sound unimpressive, but keep in mind that progress toward decarbonizing is notoriously slow when it comes to aviation. To reach a 10% overall use of SAF is a major goal, and that’s not expected to happen earlier than 2030.
At the same time, Heathrow is highlighting the need to develop a local industry in support of these efforts. The best way to do that would be through tax strategies designed to attract SAF investors.
In the meantime, Heathrow has reached the top ranks of SAF supporters, and plans to increase the percentage of green fuel used by airlines each year.
Green fuel for aircraft sounds great on paper. It works with existing aircraft without any technical modifications, helping reduce CO2 emissions at least by 70%. Best of all, it can be obtained from different sources ranging from used cooking oil to agricultural waste, which also makes it sustainable. But the harsh reality is that the SAF industry is still very young, with only a few producers globally, and a limited production capacity.
This translates to high costs that most operators aren’t happy to cover. Some airlines, like United or Lufthansa, have raised the bar with long-term SAF purchase agreements that are worth millions, but even those come with limitations. For example, United’s deal will only be implemented when Alder Fuel’s product is deemed entirely compatible with the airline’s specifications, and there’s no precise deadline for that.
As the largest airport in the UK and one of the busiest in the world, Heathrow took the plunge in 2022 by deciding to support airlines make the transition towards SAF. It was an industry-first across the globe, in the form of an incentive program. In a nutshell, Heathrow agreed to cover up to 50% of the extra costs. The airline operators who are participating in this scheme include United, Virgin Atlantic, KLM and IAG.
Apparently, that worked so well that Heathrow decided to increase the funding. This is expected to increase the use of SAF to 1.5%. This may sound unimpressive, but keep in mind that progress toward decarbonizing is notoriously slow when it comes to aviation. To reach a 10% overall use of SAF is a major goal, and that’s not expected to happen earlier than 2030.
At the same time, Heathrow is highlighting the need to develop a local industry in support of these efforts. The best way to do that would be through tax strategies designed to attract SAF investors.
In the meantime, Heathrow has reached the top ranks of SAF supporters, and plans to increase the percentage of green fuel used by airlines each year.
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