The Civil Aviation Authority of Singapore (CAAS) has established the Sustainable Aviation Fuel Company (SAFCo), a non-profit entity that will purchase and distribute sustainable aviation fuel (SAF) for all flights departing Changi and Seletar airports. Fully owned by CAAS, SAFCo will use proceeds from a fixed levy on passengers and cargo to procure the fuel through a centralized tender process. The initiative follows Parliament’s October approval of the Civil Aviation Authority of Singapore (Amendment) Bill, which enables the collection of the levy to fund SAF purchases.
CAAS director-general Han Kok Juan will chair SAFCo’s board, with Tan Seow Hui—formerly of Shell’s low-carbon solutions division—serving as chief executive. The company will begin operations in 2026 with about 10 staff and initial start-up costs covered by CAAS. According to The Straits Times, the levy will be applied to outbound flights based on distance and travel class, with early estimates ranging from S$3 for short-haul flights to S$16 for long-haul routes. The approach, officials said, ensures predictable costs for airlines while providing stable demand for SAF suppliers in a still-developing market.
CAAS aims for sustainable fuel to make up 1 percent of total jet fuel used at Singapore’s airports by 2026, rising to between 3 and 5 percent by 2030. SAFCo will pool both mandatory and voluntary demand, allowing airlines and corporations to collectively contract larger volumes at more competitive prices.
“Through SAFCo, we want to get the best value for the SAF levy collected and activate a SAF ecosystem which will help advance sustainable aviation,” Han told The Business Times.
Officials said the model, shared with the International Civil Aviation Organization, positions Singapore as a regional leader in aviation decarbonization while maintaining cost certainty for the air hub.
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