Singapore to trial its green jet fuel procurement with 9 firms including Temasek, Google and SIA

[SINGAPORE] The Republic will carry out the first test of its national sustainable aviation fuel procurement system this year in a trial with nine companies.

The Civil Aviation Authority of Singapore (CAAS) and Singapore Sustainable Aviation Fuel Company (SAFCo) signed a memorandum of understanding with the companies involved at the Changi Aviation Summit on Monday (Feb 2).

The companies are: Boston Consulting Group, Changi Airport Group, DBS, GenZero, Google, OCBC, Temasek, Singapore Airlines and Scoot.

Han Kok Juan, director-general of CAAS, said that the trial will test Singapore’s national sustainable aviation fuel procurement system overall. It will also allow companies to reduce carbon emissions through the voluntary purchase of the fuel.

“The trial is important because it allows SAFCo to test the end-to-end operational, commercial and accounting processes needed for a national-level sustainable aviation fuel procurement and environmental attributes allocation system,” he noted.

Environmental attributes are the value in carbon dioxide saved from using sustainable fuel compared with using normal jet fuel. They can be counted under various systems – such as the Carbon Offsetting and Reduction Scheme for International Aviation – to track an entity’s environmental sustainability efforts.

In response to queries for more details, including the volume of fuel and the value of the trial, Han said that the specifics are still subject to negotiation, adding that the test will begin “soon” with an open tender to be announced for the first batch of fuel.

The trial is not time-based, as some of the companies may choose to buy sustainable aviation fuel on a permanent basis, while some may only take a certain volume, depending on each of their needs.

Flying the green skies

“(The trial) will be SAFCo’s first purchase of (the fuel), and that is why this allows us to test all the processes we need for the implementation of the national sustainable aviation fuel policy from October 2026,” said Han.

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SAFCo, established by CAAS in October 2025, is the centralised purchaser of sustainable aviation fuel for Singapore. It will aggregate the demand for the fuel, whether under mandated rules or through voluntary purchases, before procuring it.

Singapore has identified green jet fuel as a key part of its long-term sustainable aviation targets. These include reducing domestic aviation emissions from airport operations by 20 per cent from 2019’s levels in 2030, and achieving net-zero domestic and international aviation emissions by 2050.

From October 2026, outbound passenger and cargo flights from Singapore will pay a sustainable aviation fuel levy based on distance and class of travel. The levy amount is calculated based on the volume of the green fuel needed to meet the Republic’s 1 per cent target usage and the premium over regular jet fuel.

For passengers, it ranges from S$1 to S$10.40 for economy class, and S$4 to S$41.60 for business and first class.

Besides this, companies or entities can also purchase the fuel or its environmental attributes through Singapore’s system on a voluntary basis.

Han said that this will allow companies to achieve “credible” emissions reductions, as well as gain experience in the process. They can also benefit from SAFCo’s central purchasing mechanism, which aggregates demand from all users and thus delivers economies of scale.

Han added: “We are very encouraged by the strong commercial interest. With greater awareness, we hope and think that more companies will join this initiative.”

Held on Feb 1 and 2 at Marina Bay Sands, the Changi Aviation Summit saw around 350 government and industry leaders from more than 50 countries gather to discuss aviation topics and governance.