CAAS, SAFCo, 9 companies launch Singapore’s 1st voluntary SAF procurement trial

The Civil Aviation Authority of Singapore, the Singapore Sustainable Aviation Fuel Co. Ltd. (SAFCo) and nine companies have launched Singapore’s first trial for central procurement of voluntary sustainable aviation fuel (SAF).

The nine companies are the Boston Consulting Group, Changi Airport Group, DBS Bank, GenZero, Google, OCBC, Temasek, Singapore Airlines and Scoot.

The organizations involved have signed a memorandum of understanding (MOU) and will trial buying SAF through SAFCo.

The MOU was signed Feb. 2 at the 3rd Changi Aviation Summit and was witnessed by Jeffrey Siow, Singapore’s acting minister for transport and senior minister of state for finance.

In October, CAAS established SAFCo to centrally procure SAF for the Singapore air hub, in support of Singapore’s aim to use 1 percent SAF for flights departing Singapore.

To achieve this, a levy on SAF will be applied for flights departing Singapore from Oct. 1, 2026.

SAFCo will aggregate regulated and voluntary demand from organizations.

This will help to develop a scalable and integrated SAF ecosystem in Singapore. 

As SAFCo’s first SAF purchase, the voluntary SAF trial is an important first step.

It will allow SAFCo to test the end-to-end operational, commercial and accounting processes needed for a national-level SAF procurement and environment attributes (EAs) allocation system and support the implementation of Singapore’s national SAF policy.

For the nine participating companies, the trial will allow them to:

• Achieve credible emissions reduction—access SAF and associated EAs through a national SAF policy framework that ensures transparent and credible emissions reduction.

• Gain practical insights—get first-hand experience on the procurement and accounting process for SAF EAs to meet sustainability commitments.

• Benefit from scale and certainty—leverage SAFCo’s aggregated demand to access SAF cost-effectively, more efficiently and with greater certainty compared to individual procurement. 

“We are encouraged by the strong commercial interest,” said Han Kok Juan, the director-general of CAAS. “With greater awareness, we hope more will join. By aggregating regulated and voluntary SAF demand, we seek to grow a robust and efficient SAF ecosystem, to achieve a more resilient and affordable fuel supply for our aviation sector.”

SAFCo CEO Tan Seow Hui added, “This voluntary trial is an important step in building confidence and capability in Singapore’s SAF ecosystem. By aggregating demand and working closely with airlines, corporate partners and government agencies, we aim to demonstrate a practical and credible approach to SAF procurement and EA allocation that can scale over time.”