7-5-2024 (SINGAPORE) In a significant stride towards achieving net-zero carbon emissions by 2050, Singapore’s national carrier Singapore Airlines (SIA) and its low-cost subsidiary, Scoot, have inked a deal to purchase 1,000 tonnes of sustainable aviation fuel from Finnish energy giant Neste. This pioneering move marks the first time that airlines operating at Changi Airport will directly receive green jet fuel produced at Neste’s refinery in Tuas South, Singapore.
The agreement, announced on May 6, underscores the airline group’s commitment to reducing its environmental footprint and aligns with Singapore’s broader efforts to promote sustainable air travel. Under the terms of the deal, Neste will blend the sustainable aviation fuel, derived from renewable waste and residue raw materials such as used cooking oil, with conventional jet fuel according to stringent safety specifications.
The blended fuel will then be delivered to SIA and Scoot aircraft via Changi Airport’s existing fuel hydrant system, marking a seamless integration of sustainable practices into the airport’s operations. The delivery will be carried out in two batches, scheduled for the second and fourth quarters of 2024.
This landmark order represents the first step taken by the SIA Group towards achieving its ambitious target of having sustainable aviation fuel account for 5 percent of its overall fuel consumption by 2030. While the 1,000 tonnes of green jet fuel may seem like a small fraction of the airline group’s annual fuel consumption, which exceeded 5 million tonnes before the COVID-19 pandemic, it signifies a significant shift towards a more sustainable future for the aviation industry.
Sustainable aviation fuel has been hailed as the most promising solution to lower the aviation sector’s carbon emissions in the near term, with claims of reducing flight emissions by up to 80 percent compared to traditional fuel. However, its higher cost, currently three to five times that of regular jet fuel, and limited supply remain challenges to overcome.
The SIA Group’s latest move builds upon its previous 20-month sustainable fuel trial conducted in collaboration with the Civil Aviation Authority of Singapore (CAAS) and Temasek-owned investment platform GenZero. The trial, which ran from February 2022 to September 2023, demonstrated the safe delivery of sustainable aviation fuel to planes at Changi Airport without the need to modify existing infrastructure.
Neste’s Singapore refinery, which recently underwent an expansion, now boasts an annual production capacity of 1 million tonnes of sustainable jet fuel, making it the world’s largest production facility for green aviation fuel. This development, coupled with the establishment of a direct supply chain from Neste’s Tuas refinery to Changi Airport, has paved the way for the seamless integration of sustainable aviation fuel into the airport’s operations.
As part of its commitment to sustainability, the SIA Group will offer carbon offsets to corporate travellers, shippers, and freight forwarders through the sale of “book and claim units.” These credits, each representing 1 tonne of sustainable fuel and its associated carbon dioxide reduction, will allow customers to offset their carbon footprint.
Alexander Kueper, Neste’s Vice President for Renewable Aviation, expressed optimism that SIA Group’s latest order and Singapore’s recently announced national sustainable jet fuel targets will encourage wider adoption of sustainable fuel across the Asia-Pacific region. “We are looking forward to expanding our cooperation with Singapore Airlines as well as supplying visiting carriers at Changi Airport,” he said.
In February, the Singaporean government set a national target for sustainable jet fuel to constitute 1 percent of all jet fuel used at Changi Airport and Seletar Airport by 2026, with the eventual goal of reaching 3 to 5 percent by 2030. Travellers flying out of Singapore will also be required to pay an additional levy from 2026, with the collected funds going towards the bulk purchase of greener jet fuel for airlines operating in the country.
While SIA and Scoot are leading the charge, other airlines have also taken steps to incorporate sustainable jet fuel into their operations at Changi Airport. In October 2023, Dubai-based carrier Emirates signed a deal with Neste for the supply of more than 11 million litres of blended sustainable aviation fuel to power its flights departing from Changi Airport and Amsterdam’s Schiphol Airport in 2024 and 2025.
