The Civil Aviation Authority of Singapore (CAAS), Singapore Airlines (SIA), and GenZero[1], an investment platform wholly-owned by Temasek that is dedicated to accelerating decarbonisation globally, have embarked on the next phase of the Singapore pilot with the delivery of blended Sustainable Aviation Fuel (SAF) to Changi Airport via the airport’s fuel hydrant system on 7 July 2022. This is also the first time blended SAF is uplifted onto SIA and Scoot departing flights at Changi Airport as part of the Singapore pilot. Under this pilot, 1,000 tonnes of neat SAF will be supplied by Neste and blended with refined jet fuel at ExxonMobil’s facilities in Singapore. This is expected to cut carbon dioxide emissions by 2,500 tonnes.
The Singapore pilot, announced in November 2021, aims to advance the use of SAF in Singapore. It is a follow-up to a study conducted by the Singapore Government and industry players on the operational and commercial viability of using SAF at Changi Airport. This pilot will incorporate the blending of neat SAF in local facilities, certification of blended SAF, and delivery to Changi Airport to operationally validate SAF integration options in Singapore. It will also provide insights on end-to-end cost components, potential pricing structures for cost recovery and support future policy considerations for SAF deployment.
Last month, CAAS, SIA and Temasek also announced the sale of 1,000 SAF credits from July 2022, as part of this pilot. This provides customers including corporate and individual travellers, as well as freight forwarders, an avenue to reduce their carbon footprint, stimulate demand for SAF, support the development of the nascent SAF industry, and advance the adoption of SAF for aviation sustainability. From the fourth quarter of 2022, SIA customers will be able to purchase a mix of SAF credits and carbon offsets, as part of the SIA Group Voluntary Carbon Offset Programme. SIA will also partner Climate Impact X (CIX), a global exchange for quality carbon credits, to introduce a bundled portfolio consisting of SAF credits and carbon credits. The product will be designed to meet corporate demand for SAF while balancing affordability.
Mr Han Kok Juan, Director-General, CAAS, said, “There is broad-based consensus amongst government and industry leaders around the world that the decarbonisation of the aviation sector and the achievement of net zero targets set by airlines will require large-scale SAF adoption. This first successful uplift of blended SAF is an important milestone in Singapore’s journey towards sustainable aviation. It shows that the Singapore Changi Airport is SAF-ready. It also provides useful operational learning points on the adoption of SAF which the CAAS is studying as part of our work on a Sustainable Air Hub Blueprint. We target to publish the Blueprint early next year.”
Ms Lee Wen Fen, Senior Vice President Corporate Planning, Singapore Airlines, said, “Today marks an important milestone in the SIA Group’s decarbonisation journey, as we uplift a blend of sustainable aviation fuel and jet fuel into our aircraft departing out of Singapore for the first time. Sustainable aviation fuels are a key decarbonisation lever, and this pilot demonstrates our commitment to achieve net zero carbon emissions by 2050. Working together with our partners, we will continue support the adoption of SAF in Singapore.”
Mr Frederick Teo, Chief Executive Officer, GenZero, said, “We are delighted to see sustainable aviation fuel used on SIA and Scoot flights departing from Changi Airport. We have also been working with our project partners and the Climate Impact X (CIX) global exchange to pilot innovative products for SAF credits. Such credits represent an important way to crowd in financing from environmentally conscious corporates and institutions to reduce the cost premium and encourage greater adoption of SAF to decarbonise global aviation. We look forward to the SAF credits arising from this project being available by the end of the year.”
Ms Geraldine Chin, Chairman and Managing Director, ExxonMobil Asia Pacific Pte. Ltd., said, “We are proud to supply certified SAF to Singapore Airlines in this inaugural pilot. ExxonMobil is bringing its deep capabilities in fuels manufacturing and logistics to help customers such as SIA achieve their net-zero ambitions. We are focused on growing our lower-emissions fuels business by leveraging technology and infrastructure, and continuing research in advanced biofuels that could provide improved longer-term solutions.”
Mr Sami Jauhiainen, Vice President of Renewable Aviation for the Asia-Pacific region, Neste, said, “We are excited to see Singapore Airlines starting today the use of Neste MY Sustainable Aviation Fuel in their flight operations. The collaboration with ExxonMobil, Singapore Airlines, Temasek and CAAS demonstrates the potential of SAF in reducing aviation’s emissions and helps accelerate its use in Singapore and globally. Neste is committed to play its part as we are starting SAF production in Singapore in the first quarter of 2023 with one million tonnes of production capacity per annum.”
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[1] From 1 July 2022, Temasek’s involvement in the pilot will be managed by GenZero, an investment platform wholly owned by Temasek that is dedicated to accelerating decarbonisation globally. To meet corporate demand for SAF while balancing affordability, GenZero will work with partners like Climate Impact X to roll out SAF credits to the carbon marketplace.