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Heathrow warns UK could miss out on multibillion-pound green fuel industry

Heathrow is increasing its support for airlines using sustainable aviation fuel (SAF) – but warned that more government backing is needed for greener energy supplies.

Last year it launched a SAF incentive programme which aimed to cover up to 50% of the extra cost, making the fuel more affordable for airlines to use.

The scheme was oversubscribed so Heathrow is now aiming to triple the percentage used in 2023 to approximately 1.5%.

Participants in the scheme include IAG, Virgin Atlantic, United Airlines, Air France, KLM and JetBlue.

Heathrow said it is committed to increasing the SAF used each year, with the airport targeting 11% SAF usage by 2030.

However, John Holland-Kaye, Heathrow chief executive, warned that the UK is at risk of missing out on the multibillion-pound SAF industry and said the government must act to support the sector.

“Sustainable aviation fuel is not just about protecting the benefits of aviation in a net zero world – it’s about economic opportunity, creating jobs here in the UK and securing the country’s future energy supplies,” he said.

“Heathrow has led the way on decarbonising aviation by incentivising airlines to use SAF, and Team Heathrow is now probably the biggest user of SAF in the world. But it is currently all imported.

“If Britain really wants to compete with the scale of ambition and the credible action seen from the US and Europe, supportive government policy is needed and it is needed now.”

The airport said the UK government must “act swiftly” by committing into legislation a 10% mandate for SAF use by 2030 this year.

“Delay could mean that the UK SAF industry suffers and cannot keep up internationally. By delivering both, the UK will see an immediate and tangible impact – with investment, jobs and skills seen right across the UK,” it said.

SAF reduces carbon emissions by up to 70% compared with traditional jet fuel and can be made from a variety of sources, including waste, animal fat and cooking oil.

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