The Civil Aviation Authority of Singapore (CAAS) has announced the creation of a new company, SAFCo, which will centrally purchase sustainable aviation fuel (SAF) using levies collected from departing airline passengers. The initiative aims to increase the use of green jet fuel at Singapore's major airports, including Changi (ICAO: WSSS, IATA: SIN) and Seletar (ICAO: WSSL, IATA: XSP).
Targeted to reach 1% SAF usage in 2026 and subsequently rising to 3-5% by 2030, the program will blend SAF with conventional jet fuel to reduce emissions. The government-owned SAFCo will pool funds from passenger levies, with initial estimates suggesting that short-haul passengers may pay around $3, medium-haul $6, and long-haul $16, with precise amounts to be confirmed by the end of 2025.
Strategic Approach and Environmental Goals
SAFCo's fixed levy approach is intended to provide cost certainty and incentivize sustainable fuel production, supporting Singapore's broader efforts to cut domestic airport emissions by 20% by 2030 and achieve net-zero international and domestic aviation emissions by 2050. Procurement will follow international sustainability standards, utilizing transparent tender processes to ensure competitive pricing and environmentally responsible sourcing.
Ms. Tan Seow Hui has been appointed as SAFCo's chief executive, and the company plans to establish governance, procurement frameworks, and levy collection systems first, before engaging airlines and cargo operators ahead of 2026's first procurement round. Officials hope this effort will stimulate sustainable aviation fuel investments and production, while maintaining Singapore’s position as a leading global airline hub.
