Heathrow has accused chancellor Jeremy Hunt of missing a “prime opportunity” to invest in a UK sustainable aviation fuel (SAF) industry in the autumn statement.
The London hub warned that low production volumes and high costs remain the barrier to wider SAF use.
“Thousands of jobs, billions added to the economy and the UK’s fuel security are within grasp if government creates a policy environment which cultivates UK SAF production,” the airport said.
“While recent government commitments to consult on a SAF revenue certainty mechanism are welcome, more urgency is required from policymakers in bringing forwards legislation that supports the UK in the global SAF race.
“As the UK stalls, the US and EU are marching ahead, driving billions of investment into greener fuel through Government incentives and mandates.
“Ministers needs to act now to secure Britain’s world-leading aviation sector’s future, in a world without carbon.”
The comments came as Heathrow confirmed that £71 million was being made available to airlines using the airport to support swapping to cleaner fuels.
Airlines at Heathrow are expected to use record amounts of SAF next year as a result of extension of its carbon cutting incentive scheme for a third year.
The disclosure came ahead of Virgin Atlantic operating the first 100% SAF-powered Heathrow-New York flight on November 28.
Heathrow is aiming for 11% SAF usage by 2030, scaling up the incentive year-on-year.
Director of carbon Matt Gorman said: “Sustainable aviation fuels are a proven reality – they have already powered hundreds of thousands of flights and we will soon show we can fly the Atlantic fossil fuel free.
“Heathrow’s first of its kind incentive scheme has seen SAF use at the airport ramp up in recent years.
“Now, the government needs to capitalise on this strong demand and legislate for a revenue certainty mechanism to enable a home-grown SAF industry, before it is too late for the UK to benefit from jobs, growth and energy security this would bring.”