Singapore tests centralized SAF buying with nine firms

Singapore has launched its first voluntary sustainable aviation fuel procurement trial, bringing together nine companies to test a centralized buying system that aims to build a scalable sustainable aviation fuel ecosystem ahead of a mandatory levy taking effect in October 2026, the Civil Aviation Authority of Singapore said in a statement Feb. 2.

The CAAS, the Singapore Sustainable Aviation Fuel Company Ltd. and nine firms signed a memorandum of understanding on Feb. 2 to trial SAF purchases through SAFCo, the government-backed entity established in October 2025 to centrally procure SAF for Singapore's air hub, CAAS said.

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

The trial will test end-to-end operational, commercial, and accounting processes for national-level SAF procurement and the allocation of environmental attributes, supporting Singapore's goal to use 1% SAF for flights departing the city-state.

A SAF levy will be applied to all departing flights from Oct. 1, 2026, to help meet that target.

Platts, part of S&P Global Energy, assessed FOB Straits SAF at $2,050/mt on Feb. 2.

S&P Global Energy CERA estimated Singapore's SAF demand would reach 90,000 mt in 2026, amid the 1% target, and reach 156,000 mt in 2036 when the goal is lifted to use 5% SAF for departing flights.

By pooling regulated and voluntary demand, SAFCo aims to help participating companies access SAF more cost-effectively and efficiently than through individual procurement, while ensuring transparent and credible emissions reduction through Singapore's national SAF policy framework, CAAS said.

"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," Han Kok Juan, director-general of CAAS, said.

The trial will give participating firms practical experience in SAF environmental attributes procurement and accounting to meet sustainability commitments. For Singapore Airlines, the trial supports its target of achieving net-zero carbon emissions by 2050, with SAF at the core of its decarbonization pathway, Lee Wen Fen, the airline's chief sustainability officer, said.

"This voluntary SAF trial with SAFCo and CAAS is a further step to aggregate demand and build the capabilities to scale SAF in Singapore, supporting the development of a SAF ecosystem," Lee said.

Tan Seow Hui, chief executive officer of SAFCo, said the trial represents an important step in building confidence and capability in Singapore's SAF ecosystem by demonstrating a practical approach to SAF procurement that can scale over time.

Platts updates its daily FOB Straits neat SAF freight netback assessment to a market-based price assessment, effective Feb. 2, 2026.

The decision follows the observation of a growing supply of SAF in the Straits of Malacca region, driven by the transition to low-carbon fuels following the development of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and by increasing country-level SAF targets.

The new market-based price assessment also aligns with the increasing need for pricing transparency in the region.

The current annual production capacity for this region is close to 1.9 million metric tons of SAF, according to Platts, with additional capacity coming online in the near future.

On Jan. 30, the FOB Straits neat SAF freight netback assessment was at $2,166.25/mt, unchanged from Jan. 29, Platts data showed.