Singapore to require use of low-carbon aviation fuel from 2026

Aviation hub Singapore will require airlines departing from the city-state to use sustainable aviation fuel (SAF) from 2026 as part of industry plans to cut carbon emissions, the country's Transport Minister said Monday.

But as the environmentally friendly fuel is three to five times more expensive than conventional jet fuel, authorities will introduce a levy on tickets to help cushion costs, Chee Hong Tat told an aviation summit. 

"To kickstart SAF adoption in Singapore, we will require flights departing Singapore to use SAF from 2026," Chee said in a speech, adding that airliners will be required to use a jet fuel mix that is one percent SAF that year, gradually increasing to between three and five percent by 2030.

"This will provide an important demand signal to fuel producers and give them the incentive to invest in new SAF production facilities," Chee said.

To partially offset the cost, Singapore will collect a levy that varies depending on the distance traveled and the travel class. Starting in 2026, an economy ticket on a direct flight from Singapore to London could increase by $16 Singapore dollars ($12), according to Chee.

Renewable SAF

Aviation is responsible for 2-3 percent of global CO2 emissions, but it is one of the most difficult industries to decarbonize. 

SAFs are produced from renewable biomass and waste resources and can comprise up to 50 percent of jet fuel mixes. They are seen as the main tool for decarbonizing the aviation sector, but the technology is still in its infancy and production remains expensive.

It is a new type of aviation fuel that blends bio-manufactured green jet fuel with traditional fuel. It has the potential to reduce carbon emissions over the fuel's life cycle by up to 80 percent, making it a viable alternative to green aviation energy.

The International Air Transport Association predicted that 65 percent of the carbon reduction in the aviation sector will be realized through the use of SAF by 2050. Various SAF technological breakthroughs will become a crucial pathway for the low-carbon transformation of the global aviation sector.

Many oil enterprises worldwide are jumping on the SAF business bandwagon as well. They have carried out construction and operation of SAF projects in many regions around the world.

In April 2023, a Memorandum of Understanding for cooperation was signed between the U.S. industrial conglomerate Honeywell and China's Tianjin Free Trade Zone to establish a flagship SAF production base in north China. The move aims to meet the growing market demand for SAF, said the U.S. company. 

(With input from agencies)