Singapore to pilot centralised sustainable aviation fuel procurement

Singapore will pilot a centralised procurement model for sustainable aviation fuel (SAF) as part of its efforts to curb emissions from air travel, with companies including Alphabet Inc.’s Google, Singapore Airlines Ltd. and DBS Group Holdings Ltd. participating in the voluntary trial.

A total of nine companies will take part in the initiative by purchasing SAF through the Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo), an entity being set up ahead of the introduction of a green levy on departing flights. The levy, described by officials as a world first, will apply to air tickets sold from April 1 for flights departing Singapore from October, Bloomberg writes. 

The trial will help SAFCo refine the operational, commercial and accounting processes needed to support an initial requirement for flights departing Singapore to use 1% sustainable aviation fuel, the Civil Aviation Authority of Singapore (CAAS) said in a statement on February 2. Singapore aims to raise SAF adoption to between 3% and 5% by 2030.

“Sustainable aviation fuel is a critical lever for the decarbonisation of the aviation sector,” Vrushali Gaud, Google’s director of climate operations, said in the statement. “Developing a scaleable SAF ecosystem is crucial for increasing supply.”

Under the new system, air passengers will pay a green levy of up to S$41.60 per ticket, with proceeds directed to SAFCo for the purchase of sustainable fuel. SAF is typically produced from waste oils or agricultural feedstock.

Despite growing policy support, adoption of sustainable aviation fuel remains constrained by cost, which is generally two to five times higher than conventional jet fuel.

The International Air Transport Association has warned that SAF production growth is expected to slow in 2026, reaching about 2.4 million metric tons, up from around 1.9 million tons last year. SAF accounted for just 0.6% of total jet fuel consumption in 2025, the industry body said.

Other participants in the Singapore trial include Boston Consulting Group Inc., Changi Airport Group Singapore Pte, GenZero, Oversea-Chinese Banking Corp., Temasek Holdings Pte, and Scoot, according to CAAS.

By Sabina Mammadli