Singapore Launches First National Trial of Centralised Green Jet Fuel Procurement

Singapore is moving closer to large-scale adoption of sustainable aviation fuel with the launch of its first national trial of a centralised green jet fuel procurement system. The pilot, announced at the Changi Aviation Summit on February 2, will test how the Republic aggregates demand, purchases fuel, and allocates environmental benefits ahead of mandatory use beginning in 2026.

The trial brings together nine participating organisations: Boston Consulting Group, Changi Airport Group, DBS, GenZero, Google, OCBC, Temasek, Singapore Airlines and Scoot. The Civil Aviation Authority of Singapore and the Singapore Sustainable Aviation Fuel Company formalised the collaboration through a memorandum of understanding signed during the summit.

 

Testing a National-Level SAF Framework

 

According to CAAS Director-General Han Kok Juan, the objective of the trial is to stress-test Singapore’s end-to-end sustainable aviation fuel system. This includes the operational mechanics of procurement, the commercial structures underpinning purchases, and the accounting processes used to allocate emissions reductions to participating entities.

A core element of the framework is the use of environmental attributes. These represent the carbon dioxide savings achieved by using sustainable aviation fuel instead of conventional jet fuel. Such attributes can be counted under recognised systems, including the Carbon Offsetting and Reduction Scheme for International Aviation, allowing companies to credibly track and report emissions reductions.

The trial will begin with an open tender for the first batch of fuel, which CAAS expects to announce soon. Specific details on fuel volumes and transaction values are still under negotiation. Importantly, the trial is not constrained by a fixed timeframe. Participating companies may choose to make ongoing purchases or limit their involvement to specific volumes based on internal needs and decarbonisation strategies.

 

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SAFCo’s Role as Central Buyer

 

The pilot marks the first purchase of sustainable aviation fuel by SAFCo, which was established by CAAS in October 2025 as Singapore’s centralised buyer. SAFCo is designed to aggregate demand across airlines and non-aviation corporates, whether purchases are mandated or voluntary, before procuring fuel from suppliers.

This aggregation model is intended to deliver economies of scale, improve price certainty, and lower barriers to entry for companies that want to support aviation decarbonisation but lack direct exposure to fuel procurement. Han noted that the trial is critical preparation for the full implementation of Singapore’s national SAF policy in October 2026.

 

Linking the Trial to Long-Term Climate Goals

 

Sustainable aviation fuel is a central pillar of Singapore’s long-term aviation decarbonisation strategy. The country aims to reduce domestic aviation emissions from airport operations by 20 percent from 2019 levels by 2030 and to reach net-zero emissions for both domestic and international aviation by 2050.

From October 2026, all outbound passenger and cargo flights from Singapore will be subject to a sustainable aviation fuel levy. The levy will vary based on distance travelled and class of travel, reflecting the premium of green jet fuel over conventional fuel needed to meet Singapore’s initial 1 percent SAF usage target. For economy-class passengers, the levy will range from S$1 to S$10.40, while business and first-class travellers will pay between S$4 and S$41.60.

Alongside the levy, companies and other entities will be able to voluntarily purchase sustainable aviation fuel or its environmental attributes through the same centralised system. This dual structure is designed to combine regulatory certainty with voluntary market participation.

 

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Building Market Confidence Ahead of Mandates

 

CAAS expects the trial to provide participating organisations with hands-on experience in sustainable aviation fuel procurement and accounting, while also demonstrating the credibility of emissions reductions achieved through the system. By pooling demand through SAFCo, companies can participate without negotiating individual supply contracts, reducing complexity and cost.

Han said the strong commercial interest shown in the trial reflects growing awareness of aviation’s role in corporate climate strategies. As more organisations seek verifiable pathways to cut Scope 3 emissions, Singapore’s centralised approach could serve as a model for other aviation hubs in the region.

The announcement was made during the Changi Aviation Summit, held on February 1 and 2 at Marina Bay Sands, which brought together around 350 government and industry leaders from more than 50 countries to discuss aviation governance, sustainability and the future of air travel.