CAAS and SAFCo launch a new trial to boost Singapore's sustainable fuel supply

Singapore is taking a major step toward greener skies. The CAAS and the Singapore Sustainable Aviation Fuel Company (SAFCo) have launched a new trial. This project focuses on the central procurement of sustainable aviation fuel (SAF). Nine major companies are joining the effort. These include Singapore Airlines, Google, and Temasek. The goal is to build a strong market for clean jet fuel in the region.

Central Procurement Benefits

Buying fuel in bulk helps lower costs. Right now, SAF is much more expensive than regular jet fuel. By working together, these companies can get better prices. This trial will test how to manage the supply chain. It also tracks Environmental Attributes (EAs). These are credits that prove a company reduced its carbon footprint. This system makes it easier for businesses to meet their green goals.

The 2026 Mandate

Singapore has a clear plan for the future. By October 2026, all flights leaving the country must use 1% SAF. This target will grow to 3-5% by 2030. To pay for this, a SAF levy will be added to tickets. Passengers will pay between S$1 and S$41.60 depending on their flight distance. The money collected will go directly toward buying more sustainable fuel.

Industry Impact

This trial is a first for the region. It shows how regulators and airlines can work together. The IATA says SAF is the best way to reach net-zero emissions by 2050. Singapore's model could be a guide for other countries. It balances environmental goals with the need to stay a global travel hub. The ICAO is also watching these developments closely as they set global standards.

• SAFCo will manage the fuel supply for Changi and Seletar airports.
• The trial helps companies gain experience in green fuel accounting.
• Centralized buying reduces the risks for individual airlines.
• This initiative supports Singapore's Sustainable Air Hub Blueprint.

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