Singapore aims to use sustainable aviation fuel in all flights by 2026

Photo courtesy of Bangkok Post

Singapore Transport Minister Chee Hong Tat revealed a green initiative to transition all outgoing flights to utilise sustainable aviation fuel (SAF) by 2026. This announcement came during the Changi Aviation Summit, a precursor to the Singapore Airshow.

The city-state is committing to a 1% SAF usage target by 2026, with ambitions to elevate this figure to between 3% and 5% by 2030. This increase is contingent on global progress and the broader acceptance and availability of SAF, said the Civil Aviation Authority of Singapore (CAAS).

“The use of SAF is a critical pathway for the decarbonisation of aviation and is expected to contribute around 65% of the carbon emission reduction needed to achieve net zero by 2050.”

The plan was developed by the CAAS in collaboration with stakeholders and industry members.

SAF is produced either synthetically or from biological materials, such as used cooking oil or wood chips. At present, SAF makes up a mere 0.2% of the jet fuel market. The aviation industry, however, expects this figure to rise to 65% by 2050, aligning to achieve ‘net zero’ emissions by the same year. Achieving this target, however, would necessitate a significant capital investment estimated between US$1.45 trillion to US$3.2 trillion, reported Bangkok Post.

Producers of SAF have expressed concerns over the lack of certainty regarding the purchase of their product, while airlines argue about insufficient supply and inflated costs. Currently, SAF is up to five times pricier than traditional jet fuel.

To address these issues, the CAAS intends to implement an SAF levy for the acquisition of SAF to provide cost assurance for airlines and travellers. The levy’s value will be a predetermined quantum, reliant on the SAF target and the projected SAF price at the given time.

It will fluctuate based on factors such as travel distance and travel class. For instance, the levy to support a 1% SAF uplift in 2026 could potentially increase the ticket price for an economy class passenger on a direct flight from Singapore to Bangkok, Tokyo, and London by approximately S$3 (US$2.23), S$6 and S$16 respectively. Premium class passengers will be subject to higher levies, according to Singapore’s aviation regulator.

In related news, Thai energy authorities were developing a national proposal for Sustainable Aviation Fuel (SAF) to reduce carbon emissions in the aviation industry. Read more about the sustainable aviation fuel initiative in Thailand.

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

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