Singapore's Civil Aviation Authority (CAAS) has established a new entity, Singapore Sustainable Aviation Fuel Company (SAFCo), to coordinate the procurement of sustainable aviation fuel (SAF). The initiative aims to support Singapore's target of using SAF for 1% of jet fuel at Changi and Seletar airports by 2026, with plans to increase to 3-5% by 2030.
CAAS Director-General Han Kok Juan, who will chair SAFCo, emphasized that the organization will bring together airlines, fuel producers, and carbon market platforms to streamline stakeholder coordination. Ms. Tan Seow Hui, previously with Shell Low Carbon Solutions, has been appointed CEO. The company's strategy involves engaging with suppliers that meet global sustainability standards and conducting transparent, competitive tendering for procurements starting in 2026.
Initial funding for SAFCo will be provided by CAAS, and the organization plans to hire approximately ten staff members in its first year. A key component of the plan involves implementing a passenger levy system to finance SAF purchases, with details expected to be finalized later. Estimates last year suggested levies could range from S$3 to S$16 depending on flight distance, to offset SAF's higher costs—approximately three to five times that of conventional jet fuel.
This move represents a legislative effort following recent legal amendments that empower CAAS to levy a sustainable aviation fuel fee and centralize procurement. Overall, SAFCo aims to stimulate SAF production and demand, lower costs through volume and scale, and support Singapore’s long-term aviation sustainability goals.
