Singapore Airlines buys 1,000 tons of sustainable aviation fuel from Neste | News | Eco business

Singapore Airlines Group (SIA) has agreed to buy 1,000 tonnes of sustainable aviation fuel (SAF) from Neste, a Finnish manufacturer that set up the world’s largest SAF production facility in Singapore last year.

SIA and its budget carrier Scoot will be the first two airlines to directly use the pure SAF, which is derived from biomass feedstock produced at Neste’s Changi Airport refinery. The expanded refinery, which was completed in May 2023, has the capacity to produce one million tonnes of SAF per year.

“Neste will blend the SAF with conventional jet fuel according to required safety specifications, and deliver the blended jet fuel to Changi Airport’s fuel tap system in two batches – once in the second quarter of 2024 and once in the fourth quarter of this year. SIA said in a statement on Monday.

The Civil Aviation Authority of Singapore (CAAS) announced in February that the city-state aims for all flights departing Singapore to use 1 percent of SAF from 2026 and later 3 to 5 percent by 2030, subject to positive market conditions. While this move was welcomed by the industry, it also raised concerns about the limited supply of raw materials.

Neste’s SAF is made from “100 percent renewable raw materials, including used cooking oil and animal fat waste. The company said it reduces greenhouse gas emissions by 80 percent compared to fossil jet fuel.

Starting this month, SIA will offer 1,000 SAF credits, also known as Book & Claim Units (BCU), for purchase by business travelers, shippers and forwarders.

“By purchasing SAF BCUs, business travelers, shippers and forwarders can claim the associated environmental benefits for flights related to their business travel and activities… supporting the development of the emerging SAF industry,” SIA said.

In September 2023, SIA, CAAS and GenZero, an investment platform of Temasek, concluded a 20-month pilot in which the aviation group imported 1,000 tons of pure SAF that was increased on SIA and Scoot flights. An equivalent of 1,000 SAF credits was generated through an industry standard, the Roundtable on Sustainable Biomaterials (RSB) Book & Claim System, representing approximately 2,500 tonnes of CO2 reduction, SIA said.