Singapore Is Operationally Ready for Sustainable Aviation Fuel but More is Needed to Support Adoption

November 09, 2023

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(Civil Aviation Authority of Singapore) The Civil Aviation Authority of Singapore (CAAS), GenZero, and Singapore Airlines (SIA) have completed a 20-month Sustainable Aviation Fuel (SAF) pilot, which commenced in February 2022, in partnership with Temasek1. The SAF pilot supports one of the key recommendations of the International Advisory Panel (IAP) on Sustainable Air Hub2 to create a long-term secured SAF supply ecosystem for Singapore. The pilot found that while Singapore is operationally ready to supply SAF, more is needed to support adoption. CAAS will incorporate the lessons learnt in the development of the Singapore Sustainable Air Hub Blueprint.

There were three aspects to the SAF pilot:

First, operational readiness. The pilot validated the end-to-end process needed to bring SAF into Changi Airport, including procurement, blending of neat SAF with conventional jet fuel in Singapore facilities, safety certification and delivery of the blended SAF to Changi Airport. The pilot affirmed that SAF can be safely deployed to Changi Airport and uplifted onto flights without any modification to existing airport infrastructure.
Second, the generation of SAF credits. The generation of SAF credits for sale to corporates and air cargo companies looking to decarbonise their carbon footprint, is a way to crowd-in financing to share SAF’s higher costs. Under the pilot, SIA purchased 1,000 tonnes of neat SAF which generated 1,000 SAF credits, corresponding to approximately 2,500 tonnes of carbon dioxide reductions. These SAF credits were generated through a trusted industry standard, the Roundtable on Sustainable Biomaterials (RSB) Book & Claim System3. The pilot validated that transactions in SAF credits could be conducted in a trusted and transparent manner which lays the foundation for a global marketplace for SAF credits.
Third, market readiness. About two-thirds of the 1,000 credits generated were sold during the pilot. The pilot validated market demand for SAF credits but also showed that more is needed for wide-scale SAF adoption, including through education, outreach and corporate and government policy support.

Mr Han Kok Juan, Director-General, CAAS, said, “SAF, which the International Air Transport Association estimates to account for 65% of the carbon emission reduction needed by aviation to reach net-zero in 2050, will be a key component in Singapore aviation’s decarbonisation efforts. CAAS is developing a structural offtake mechanism to support SAF adoption. This will take into account developments elsewhere in the world, including discussions at the upcoming third International Civil Aviation Organization Conference on Aviation and Alternative Fuels.”

Ms Lee Wen Fen, Chief Sustainability Officer, Singapore Airlines, said, “SAF is a key decarbonisation lever for the SIA Group to achieve our net zero carbon emissions goal by 2050. This pilot has laid the foundation for a tangible pathway towards SAF adoption in Singapore. SIA will continue to collaborate closely with our partners to promote and scale up the adoption of SAF in Singapore.”

Mr Frederick Teo, CEO of GenZero, said, “SAF is widely acknowledged as a critical lever to decarbonise aviation. Ensuring that SAF can be operationally deployed in Singapore will help position Changi as both a regional and global sustainable aviation hub. The pilot is a demonstration of the community’s ability to mobilise the aviation ecosystem for the operationalisation, deployment and usage of SAF. Through this pilot, GenZero also worked with partners like Climate Impact X and the RSB to launch SAF credits. This allowed us to develop the methodology and processes needed to test the extent to which corporates were willing to offset their travel emissions. It provided useful insights on how we can crowd in additional carbon financing to offset the price premium and support the adoption of SAF.”

Annex A: Overview of Sustainable Aviation Fuel Pilot

1 Since 1 July 2022, Temasek’s involvement in the pilot was managed by GenZero, an investment platform wholly owned by Temasek that is dedicated to accelerating decarbonisation globally.

2 The full IAP report on Sustainable Air Hub can be accessed from: https://www.caas.gov.sg/who-we-are/newsroom/Detail/international-advisory-panel-on-sustainable-air-hub-submits-report-with-key-recommendations/

3 The Roundtable on Sustainable Biomaterials (RSB) is a global membership organisation that drives the sustainable transition to a bio-based and circular economy. The Book & Claim System enables the decoupling of sustainability attributes from certified SAF. The decoupled sustainability attributes can be used to generate SAF credits, which can be transferred to another account holder and retired in a robust and transparent manner.

About the Civil Aviation Authority of Singapore (CAAS)

The mission of the Civil Aviation Authority of Singapore is to grow a safe, vibrant air hub and civil aviation system, making a key contribution to Singapore’s success. CAAS’ roles are to oversee and promote safety in the aviation industry, develop the air hub and aviation industry, provide air navigation services, provide aviation training for human resource development, and contribute to the development of international civil aviation. For more information, visit www.caas.gov.sg.

About Singapore Airlines (SIA)

The SIA Group’s history dates to 1947 with the maiden flight of Malayan Airways Limited. The airline was later renamed Malaysian Airways Limited and then Malaysia-Singapore Airlines (MSA). In 1972, MSA split into Singapore Airlines (SIA) and Malaysian Airline System. Initially operating a modest fleet of 10 aircraft to 22 cities in 18 countries, SIA has since grown to be a world-class international airline group that is committed to the constant enhancement of the three main pillars of its brand promise: Service Excellence, Product Leadership and Network Connectivity. For more information, please visit www.singaporeair.com.

About GenZero

GenZero is an investment platform company focused on accelerating decarbonisation globally. Founded by Temasek, we seek to deliver positive climate impact alongside long-term sustainable financial returns by investing in opportunities with the potential to be nurtured into impactful and scalable solutions.

Driven by a common purpose to decarbonise for future generations, we recognise the need for a holistic and integrated approach to achieve a net zero world. At GenZero, we adopt a flexible investment approach across three focus areas to drive climate impact: (i) nature-based solutions that help protect and restore our natural ecosystems while benefiting local communities and biodiversity; (ii) technology-based solutions that deliver deep decarbonisation impact; and (iii) carbon ecosystem enablers which refer to companies and solutions that support the development of an effective, efficient, and credible carbon ecosystem.

For more information on GenZero, visit www.genzero.co.

About Temasek

Temasek is a global investment company with a net portfolio value of S$382 billion (US$287b, €264b, £232b, RMB1.98t) as at 31 March 2023. Its Purpose “So Every Generation Prospers” guides it to make a difference for today’s and future generations.

As an active investor, forward looking institution and trusted steward, it is committed to deliver sustainable value over the long term.

Temasek has overall corporate credit ratings of Aaa/AAA by rating agencies Moody’s Investors Service and S&P Global Ratings respectively.

Headquartered in Singapore, it has 13 offices in 9 countries around the world: Beijing, Hanoi, Mumbai, Shanghai, Shenzhen, and Singapore in Asia; and London, Brussels, Paris, New York, San Francisco, Washington DC, and Mexico City outside Asia.

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