Singapore Airlines orders sustainable fuel from Neste

Singapore Airlines orders sustainable fuel from Neste
Singapore Airlines orders sustainable fuel from Neste

Singapore Airlines will be the first customer of Finnish oil company Neste, which has built the world’s largest sustainable aviation fuel (SAF) production plant at Singapore airport, the two companies announced on Monday.

Asia’s leading carrier has signed an agreement with Neste to purchase and blend 1,000 tonnes of SAF with kerosene, which it will use with its low-cost arm Scoot, according to a statement.

Number one in the sector, Neste expanded a refinery at Singapore-Changi airport last year, making it, according to its claims, the largest SAF production unit in the world, with a capacity of one million tonnes per year.

Sustainable aviation fuel is made from waste and residues of renewable raw materials, making it possible to reduce CO2 emissions by 80% compared to conventional kerosene over their entire use cycle.

Quoted in the press release Alexander Kueper, vice-president for sustainable aviation at Neste, said he hoped this agreement would encourage ‘greater adoption of SAF across the Asia-Pacific region’.

Singapore declared in February that it wanted to gradually ask companies serving the city-state to use low-carbon fuels from 2026. Companies will have to use fuel blended with 1% SAF in 2026, a content which will gradually increase to 3 to 5% by 2030.

SAF can be used directly in current aircraft, certified to accept mixtures of 50% in fossil kerosene, and 100% by 2030. But this low-carbon fuel remains 3 to 5 times more expensive, and the Singaporean authorities must introduce a surcharge on tickets to cushion the cost differential.

Aviation is responsible for 2 to 3% of total CO2 emissions but remains one of the most difficult sectors to decarbonize. The use of sustainable fuels is seen as an essential solution, but undoubtedly insufficient to cover the needs of all aircraft.

The goal of the International Civil Aviation Organization (ICAO) is to achieve carbon neutrality by 2050.

/ATS

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