The Singapore Airlines Group (SIA) has taken another significant step towards its sustainability goals by signing an agreement with Neste to purchase 1,000 tonnes of sustainable aviation fuel (SAF). This landmark deal will make SIA and Scoot the first airlines to receive SAF produced at Neste’s Tuas refinery, marking a significant milestone for both the aviation industry and Singapore’s green ambitions.
The Role of Sustainable Aviation Fuel in Decarbonizing Air Travel
Sustainable Aviation Fuel (SAF) is a key component in reducing the carbon footprint of the aviation industry. Produced from 100% renewable waste and residue materials, Neste’s SAF can reduce greenhouse gas emissions by up to 80% over its lifecycle compared to conventional jet fuel. However, due to current technological and safety requirements, SAF must be blended with conventional jet fuel before being used in commercial flights.
Neste plans to deliver the SAF in two batches — one in the second quarter of 2024 and the other in the fourth quarter of 2024 — directly to Changi Airport’s fuel hydrant system. This will be the first direct supply of SAF to airlines at the airport, reinforcing Singapore’s end-to-end SAF supply chain capabilities.
A Growing Hub for Sustainable Aviation Fuel in Asia
The expansion of Neste’s Singapore refinery in May 2023 has been a game changer, positioning it as the world’s largest SAF production facility with the capacity to produce one million tonnes annually. This agreement aligns with Singapore’s broader vision to become a leading sustainable air hub in the Asia-Pacific region. From 2026, flights departing from Singapore will be required to use a minimum blend of 1% SAF, further driving demand and adoption.
Alexander Kueper, Vice President of Renewable Aviation at Neste, emphasized the significance of this collaboration, stating, “This supply of locally produced SAF to Changi Airport is a milestone in our journey of supporting the aviation industry and governments in the region to achieve their emissions reduction goals.” As Singapore continues to lead the region in sustainable aviation practices, this development is expected to encourage wider SAF adoption across Asia.
Boosting the SAF Ecosystem: Book & Claim Units
In parallel with this agreement, SIA will offer 1,000 SAF Book & Claim Units (BCUs) starting in May 2024. These units allow corporate travelers, shippers, and freight forwarders to purchase SAF-related carbon reductions even if they cannot directly use SAF in their operations. By purchasing BCUs, businesses can support the development of the SAF industry while claiming the associated environmental benefits for their sustainability reporting and carbon reduction targets.
VURDHAAN’s Role in Advancing Sustainable Aviation
As the aviation industry pivots towards greener solutions, VURDHAAN remains committed to supporting organizations in integrating sustainable practices into their operations. Our deep expertise in Sustainable Aviation Fuels (SAF), combined with our focus on industry-specific strategies, positions us as a trusted partner for airlines and aviation stakeholders navigating this transition. We work with clients to meet regulatory standards like CORSIA, EU ETS, and SBTi while enhancing operational efficiency and reducing carbon emissions. Through tailored guidance and strategic implementation, we help aviation companies achieve their long-term decarbonization goals, ensuring compliance and sustainability excellence.
The Path Ahead for Greener Aviation
The partnership between Singapore Airlines and Neste underscores the critical role SAF will play in decarbonizing aviation. With more airlines and governments embracing SAF as a viable solution, the industry is on the cusp of a more sustainable future. VURDHAAN is proud to be at the forefront of this journey, helping organizations align with evolving industry standards while driving impactful sustainability outcomes.