It is driven by its strategic location, a robust petrochemical industry, and a supportive policy environment.

Singapore is rapidly emerging as a global hub for sustainable aviation fuel (SAF), driven by its strategic location, a robust petrochemical industry, and a supportive policy environment, according to Roundtable on Sustainable Biomaterials (RSB) report.

The report said Finnish oil company Neste, a key player in the biofuel sector, has been instrumental in this transformation. Since establishing a biorefinery in Singapore in 2010 to produce renewable diesel from bio-based waste, Neste has significantly expanded its operations. In 2018, the company decided to increase the refinery's production capacity to 2.6 million tons per year, including 1 million tons of SAF.

The first use of SAF in Singapore took place in July 2022, when a blend of SAF was delivered to Changi Airport and used by Singapore Airlines (SIA) and its low-cost subsidiary, Scoot.

"This initiative not only demonstrated supply chain readiness but also launched a pilot to test the transfer of the SAF environmental benefit via book and claim in partnership with RSB," the report said.

By 2023, Singapore's aviation sector had further proven its commitment to SAF. The Civil Aviation Authority of Singapore (CAAS), alongside Singapore Airlines and investment platform GenZero, concluded a SAF pilot, confirming the nation's operational readiness to supply SAF. SIA and Scoot also announced a target to replace 5% of their total fuel requirements with SAF by 2030.

In February, Singapore unveiled its Sustainable Air Hub Blueprint, outlining a comprehensive action plan to decarbonise the aviation sector. Key goals include reducing domestic aviation emissions from airport operations by 20% compared to 2019 levels and achieving net-zero emissions for both domestic and international flights by 2050.

SAF is central to this strategy, with the government setting a 1% SAF target for all flights departing Singapore by 2026, with plans to raise it to 3 to 5% by 2030, contingent on global developments.

To support these targets, CAAS will introduce a SAF levy, which will fund SAF purchases. The levy will vary based on travel class and distance, with premium passengers paying more. The projected increase in ticket prices ranges from $3 to $16. By centralising SAF procurement, CAAS aims to aggregate demand and achieve cost efficiencies, benefiting both airlines and businesses seeking to reduce their carbon footprints through voluntary SAF purchases.