Singapore's SAFCo Trial: Why Google and Singapore Airlines Are Buying Green Fuel Now

Nine major companies, including Google and Singapore Airlines, have joined a voluntary trial for sustainable aviation fuel (SAF) procurement in Singapore. The trial is managed by the Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo). This move comes ahead of Singapore's mandatory green fuel levy, which starts in October 2026.

Testing Central Procurement

The Civil Aviation Authority of Singapore (CAAS) established SAFCo in October 2025. Its purpose is to centrally procure SAF for the Singapore air hub. The current voluntary trial is the first of its kind in Singapore.

Nine organizations signed a Memorandum of Understanding (MOU) on February 2, 2026, at the 3rd Changi Aviation Summit. The participants include major players like DBS Bank, Changi Airport Group, and airline Scoot.

The trial will test the full process of national-level SAF procurement. This includes operational, commercial, and accounting procedures. Aggregating demand from multiple users offers economies of scale. This central buying aims to secure a better price for the fuel.

The Mandatory Levy and SAF Targets

The voluntary procurement trial is a key step before the mandatory SAF levy takes effect. The levy will be applied to all passenger and cargo flights departing Singapore from October 1, 2026.

This levy is designed to fund the purchase of SAF. It supports Singapore’s goal of a 1% SAF uplift in 2026. This target is planned to increase to 3% to 5% by 2030.

• The levy for passengers will vary based on flight distance and cabin class.
• Economy class passengers may pay between S$1 and S$10.40.
• Business and First Class passengers will pay a higher rate, from S$4 to S$41.60.

CAAS will use a fixed-cost envelope approach for SAF procurement. This means the levy rate will be fixed, regardless of the fluctuating price of SAF.

Industry Impact and Opportunities

This centralized model offers several benefits to aviation stakeholders. Airlines like Singapore Airlines and Scoot gain practical experience. They can also secure environmental attributes (EAs) for their voluntary SAF purchases.

For non-aviation companies like Google and DBS Bank, the trial allows them to credibly reduce their carbon emissions. They can purchase SAF or its associated EAs through the national system.

The main challenge remains the limited global supply of SAF. The aggregated demand from the SAFCo model is intended to help grow a more robust and affordable SAF ecosystem. This is critical for the long-term decarbonisation of Singapore’s air hub.

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