Singapore Launches New SAF Projects Using Alternative Feedstocks

Two new projects in Singapore are set to produce Sustainable Aviation Fuel (SAF) using alternative feedstocks, a strategic move designed to bypass the supply bottlenecks associated with Used Cooking Oil (UCO). The initiatives align with the nation's goal to become a regional leader in aviation decarbonization and meet upcoming government mandates.

These projects will leverage advanced biofuel technology to convert non-traditional inputs into jet fuel. One venture on Jurong Island, a partnership between Aster and Keppel, will utilize an Ethanol-to-Jet (ETJ) process. This facility is projected to produce up to 100,000 tonnes of SAF annually from low-carbon ethanol. A second project on Pulau Bukom, involving Aster and Aether Fuels, will employ a Fischer-Tropsch (FT) process to convert industrial waste gases and biomethane into SAF, with an initial planned output of 1,600 tonnes per year.

This diversification addresses a critical challenge in the SAF market. The most common production method, Hydroprocessed Esters and Fatty Acids (HEFA), relies heavily on feedstocks like UCO and animal fats. According to industry analyses, the global supply of UCO is insufficient to meet the aviation industry's total fuel demand, creating significant supply chain resilience concerns.

National Strategy and Mandates

The development of these facilities directly supports Singapore's national aviation policy. According to the Singapore Sustainable Air Hub Blueprint, the Civil Aviation Authority of Singapore (CAAS) has established a mandatory target for 1% of all jet fuel used at its airports to be SAF starting in 2026. This target is scheduled to increase to 3-5% by 2030. To fund this transition, CAAS will implement a mandatory SAF levy on departing flights from 2026, which will be used for the central procurement of the fuel.

These national targets are part of Singapore's commitment to the long-term goal set by the International Civil Aviation Organization (ICAO) to achieve net-zero carbon emissions for international aviation by 2050. SAF is considered a cornerstone of this strategy, with organizations like IATA and Airbus noting it can reduce lifecycle CO2 emissions by up to 80% compared to conventional jet fuel.

Industry Implications and Challenges

The move toward alternative SAF feedstocks is part of a broader industry trend. Over-reliance on UCO has led to concerns about fraud, quality, and supply stability. The new projects in Singapore represent a shift towards a circular economy, converting industrial waste products into high-value aviation fuel. This approach aims to build a more resilient and localized supply chain.

However, significant hurdles remain. Despite its potential, global SAF production in 2023 accounted for less than 0.1% of all aviation fuels consumed. Cost is a primary barrier; S&P Global Energy analysis shows SAF can cost between two and five times more than conventional jet fuel. Newer production pathways like ETJ and FT, while technologically promising, are currently more expensive than the established HEFA process, underscoring the need for government incentives and mandates to stimulate investment and scale production.

Rachel Kwan, General Manager for low-carbon solutions at Aster, commented on the strategy behind the new ventures. Kwan stated that with these projects, the company “aims to strengthen supply chain resilience, diversify feedstock options, and support Singapore's ambition to be a regional leader in sustainable aviation fuels”.

Why This Matters

This development positions Singapore as a key player in the next generation of SAF production by moving beyond the limitations of first-generation feedstocks. For the aviation industry, it signals a critical step toward building a more scalable and resilient SAF supply chain, which is essential for meeting ambitious global decarbonization targets. The success of these projects could provide a replicable model for other aviation hubs grappling with similar feedstock supply challenges.

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