Singapore sets up company to purchase green jet fuel

The Civil Aviation Authority of Singapore (CAAS) announced Thursday that Singapore will purchase sustainable aviation fuel via a newly established company by the government as part of its effort to reduce costs and cut flight emissions.

Singapore has set the goal of increasing the percentage of green fuel used at Changi and Seletar Airports to 1% by next year. The funding will come from a levy imposed on all cargo and passengers flying out of Singapore.

The goal is to increase the share of SAF from 3-5% to 3-5% in 2030, depending on global developments as well as the adoption and availability of the fuel.

The SAFCo company will collect the green fuel levies and use the proceeds to create a fund for the purchase of SAF, which will then be distributed to both passenger and cargo aircraft.

Han Kok Juan said that SAF suppliers would be invited to take part in a bid to offer their products for a fixed rate. Han Kok Juan, the director-general of Singapore's civil aviation authority, stated that SAFCo had already engaged multinational corporations, and received "tremendous" interest. He added that a large buyer in Singapore could secure economies scale.

According to the authority, additional green fuel levies ranging from S$3 up to S$16 may be applied on flights of economy class depending on distance.

In this year's European Union directive, airlines are required to blend more green jet fuel. The mandate starts with a minimum of 2%, and will increase to 6% in 2030. Airlines in other markets are required to buy their own SAF. The International Air Transport Association has accused sellers of price gouging.

SAF costs between three and five times as much as regular jet fuel. ? (Reporting from Jun Yuan Yong).

(source: Reuters)