Google and Singapore Airlines Pioneer New Sustainable Fuel Procurement Trial.

Global technology leader Google is joining a major sustainability effort. The company is participating in a voluntary SAF purchase trial in Singapore. This initiative aims to boost the market for sustainable aviation fuel (SAF). The trial includes key players like Singapore Airlines and DBS Bank.

Nine companies are involved in this collective effort. They seek to drive down SAF costs. They also want to signal strong market demand. This move is critical for decarbonizing air travel.

The SAFCo Procurement Initiative

The trial operates through a new entity. It is named the Singapore Sustainable Aviation Fuel Co. (SAFCo). The Civil Aviation Authority of Singapore (CAAS) established SAFCo. It was created in October 2025 to centrally procure SAF. SAFCo pools the demand from all nine participating companies. This centralized system is a key test. It refines the operational and accounting processes. These processes are needed for a national-level SAF system.

Corporate SAF Demand

Corporate involvement is crucial for the green transition. Companies like Google have ambitious corporate climate goals. They aim to reduce their indirect carbon footprint. This includes emissions from employee business travel. The trial allows non-airline companies to buy SAF. They can use it to offset their travel emissions. This creates a new, stable stream of corporate SAF demand.

Precursor to the Green Levy

This voluntary trial sets the stage for a mandatory regulation. Singapore plans to implement a green levy on departing flights. This aviation green levy will start on October 1, 2026. The levy will apply to all tickets sold for flights leaving Singapore. Funds collected will go toward SAF purchases.

Singapore aims to achieve a 1% SAF uplift in 2026. This target is planned to increase. The goal is 3% to 5% SAF use by 2030. This makes Singapore a key regional leader. The country is working to become a major sustainable aviation fuel market hub.

Industry Impact and Challenges

The Singapore Airlines SAFCo initiative highlights a major challenge. SAF is currently much more expensive than jet fuel. Aggregating demand through SAFCo is one solution. It helps bridge this significant price gap. The trial provides valuable data. This data will inform future regulatory frameworks. It helps manage the transition to mandatory SAF use.

• The trial tests a model for centralized SAF procurement.
• It involves diverse sectors: aviation, finance, and technology.
• The mandatory levy will charge passengers between S$1 and S$41.60.
• The International Air Transport Association (IATA) expects SAF production growth to slow in 2026.
• Scaling SAF production remains the biggest hurdle for the industry.

This combined approach is unique. It uses both voluntary corporate action and mandatory policy. It is essential for meeting the aviation sector's long-term sustainability goals.

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