Singapore to buy green jet fuel that reduces at least 40% of lifecycle emissions

SINGAPORE –Singapore will buy only sustainable aviation fuel that reduces at least 40% of lifecycle emissions compared with traditional jet fuel to meet the nation’s emissions targets.

This is among newly set out requirements announced on Nov 5.

The 40% reduction requirement is intended to ensure that Singapore’s efforts to increase green jet fuel adoption will translate into meaningful emissions reductions, said Daniel Ng, chief sustainability officer of the Civil Aviation Authority of Singapore (CAAS).

A 40% reduction is a “modest starting point”, he told The Straits Times, but it sends a strong signal.

The Republic also requires the sustainable fuel it buys to be eligible under a globally recognised framework set up to address carbon emissions from aviation, known as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) by the International Civil Aviation Organization.

The 40% reduction threshold is benchmarked against standards in other jurisdictions and set above the minimum of 10% under CORSIA, said CAAS and the Singapore Sustainable Aviation Fuel Company (SAFCo).

CAAS and SAFCo said the criteria were shared with 15 potential green jet fuel suppliers and producers ahead of the first tender.

SAFCo will call the first tender by mid-December, and the delivery of the fuel in blended form will start from June 2027. The company, wholly owned by CAAS, was set up to buy and manage a supply of sustainable aviation fuel for Singapore’s air hub.

Singapore aims to have sustainable fuel constitute 1% of all jet fuel used at Changi and Seletar airports in 2027, and 3 to 5% by 2030.

Sustainable aviation fuel is generally made from waste materials such as used cooking oil and is currently considerably more expensive than conventional jet fuel, making its widespread adoption challenging.

To support the use of sustainable aviation fuel by airlines, Singapore will be implementing a green jet fuel levy from Jan 1, 2027, on passengers departing Singapore on tickets bought from Oct 1, 2026.

Economy and premium economy passengers will pay between $1 and $10.40, while those travelling in business or first class will pay between $4 and $41.60.

About 20 sustainable aviation fuel suppliers have been engaged ahead of SAFCo’s procurement exercise, Tan Seow Hui, chief executive of SAFCo, told ST on Nov 4.

“There’s strong interest in supplying Singapore,” she said, noting that there is sufficient supply available to meet Singapore’s target of having the greener fuel make up 1% of jet fuel used at Changi and Seletar airports in 2027.

The amount of sustainable aviation fuel eventually purchased will depend on the prices suppliers offer. Tan said the priority is to secure the most attractive prices so that the levy collected from air travellers can be used to purchase as much greener fuel as possible.

If prices are favourable, Singapore could exceed its 1% target. But if prices are higher than expected, “we’ll have to adjust accordingly”, said Tan.

SAFCo will assess the tender bids based on price competitiveness, supply chain resilience and delivery certainty, in addition to sustainability documentation capabilities and abilities to support Singapore’s green jet fuel ecosystem development.

This first tender that SAFCo will be calling will be for an initial volume of 20 to 30 kilotonnes.

This volume will allow the company to assess market response, and decide on subsequent procurement as volumes ramp up. More tenders will be called later, said CAAS and SAFCo.

Esther Loi is a journalist at The Straits Times, where she covers transport issues.

Vanessa Paige Chelvan is an education correspondent at The Straits Times. She also writes the occasional commentary on parenthood, work and family life.