Shell becomes first to supply sustainable aviation fuel in Singapore

Shell has become the first supplier of sustainable aviation fuel in Singapore, with the move representing a major milestone for the Asian aviation industry as the region readies to curb its carbon footprint.

"We have just delivered [SAF] to SIA Engineering Company [SIAEC] and the Republic of Singapore Air Force [RSAF]," Doris Tan, head of aviation for Asia-Pacific & the Middle East at Shell, said at a briefing organized during the Singapore Airshow on Feb. 17.

The SAF supplied is made from waste products and sustainable feedstocks and will be blended with conventional jet fuel, Shell said in a statement released on the same day.

"The first batch of SAF is blended in Europe and aims to test and verify the supply chain of SAF that Shell has established in Asia," it said, adding that the company seeks to commence blending at its Singapore facilities for subsequent batches.

To achieve this, Shell has also completed the upgrading of its facility in Singapore which will enable blending of SAF in Singapore.

SAF is currently approved for use in aircraft operations only when blended in a ratio of up to 50% of conventional jet fuel.

"Having a blended facility in the region enables a more efficient operation by moving neat SAF in bulk from production sources to the blending facility and then delivering SAF parcels where it is needed," Shell said.

Shell's SAF ambition

Shell's latest move to enable SAF in Asia and Singapore is in line with its targets to become a net-zero emissions business by 2050. SAF can hasten the aviation sector's pace of decarbonization as in its neat form, SAF can reduce lifecycle emissions by up to 80% compared to conventional jet fuel.

The company has announced its ambition to produce around 2 million mt of SAF annually by 2025 globally.

To support this, it said it had outlined plans for a biofuels facility, subject to final investment decision, at the Shell Energy and Chemicals Park Singapore. The facility has the ability to produce 550,000 mt of low-carbon fuels a year, including SAF, Shell added.

Shell Aviation supplies fuel, lubricants, and sustainable solutions in over 60 countries. Shell Aviation's carbon management strategy aims to aid its customers decarbonize by avoiding emissions on the ground, reducing emissions through the use of SAF and offsetting emissions through the use of carbon credits, specifically nature-based solutions.

At the Asian close Feb. 16, FOB Singapore SAF was assessed at $2,370.96/mt, S&P Global Platts data showed.

Platts uses a conversion factor of 8.105, which would make FOB Singapore SAF the equivalent of $292.53/b.

In comparison, FOB Singapore jet fuel/kerosene was assessed at $106.64/b at the Asian close Feb. 16, making SAF more than 2.5 times costlier than jet fuel.