Singapore Airlines Group to replace 5% of its fuel use with SAF by 2030

National carrier Singapore Airlines (SIA) and low-cost carrier Scoot – both owned by the SIA Group – will replace 5% of their total fuel requirements with sustainable aviation fuel (SAF) by 2030, the airlines said in a statement Nov. 14.

The airlines are discussing with fuel suppliers to purchase SAF, and further details will be announced "at the appropriate time", they added in the statement.

"The greater use of sustainable fuels will be a key lever in our decarbonization strategy, which includes our continued investment in new generation aircraft and greater operational efficiencies," said SIA's CEO Goh Choon Phong, adding that the SIA Group aims to achieve net zero carbon emissions by 2050.

"Deeper collaboration with partners and stakeholders, both in Singapore and around the world, is needed for all of us to meet our collective sustainability targets. We will continue to find opportunities to work together to support the greater production and use of sustainable fuels in the airline industry, as well as other decarbonization initiatives," said Goh.

Earlier this month, Singapore said it is now "operationally-ready" for SAF, following a 20-month pilot by the country's Civil Aviation Authority, SIA and Temasek-backed GenZero, although more work is needed to support its adoption in the country, reported S&P Global Commodity Insights. This involved importing 1,000 tons of neat SAF and blending it in Singapore before uplifting it through the Changi Airport fuel hydrant system onto SIA and Scoot flights.

The airlines' announced target came several days after the Association of Asia Pacific Airlines (AAPA) – which SIA is part of -- had pledged to strive for a similar SAF utilization rate of 5% by 2030. As a member of Singapore's International Advisory Panel (IAP) to develop the sustainable air hub blueprint, SIA has been playing an active part in the development of a decarbonization roadmap for the country's aviation sector.

"A harmonized global framework that enables the cost-effective supply of SAF is crucial for aviation to attain its net zero emissions goal by 2050," said AAPA's director general Subhas Menon Nov. 10.

"By highlighting their collective ambition on SAF usage, AAPA airlines are indicating the level of SAF demand as an impetus for governments to consider the necessary support initiatives for SAF supply, and for fuel producers to plan SAF production capacity, to meet the needs of the industry."

Menon also called for a globally agreed accounting framework for airlines to account for emission reductions, to ensure that relevant carbon abatement credits are properly attributed in the SAF supply chain from feedstock to production and use.

Sustainable fuels are a key decarbonization lever for the airline industry, given their potential to reduce carbon emissions by up to 80% on a life-cycle basis compared to conventional jet fuel, said SIA and Scoot.

Platts assessed sustainable aviation fuel cost of production in Southeast Asia at $1556.39/mt on Nov. 14, up 0.36% on day.