The Singapore Airlines Group has partnered with Neste to purchase 1,000 tonnes of sustainable aviation fuel (SAF) in a historic deal. This agreement positions SIA and Scoot, the two airlines under the group, as pioneers in receiving SAF directly from Neste’s refinery at Singapore Changi Airport.
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Under the deal, Neste will blend the SAF with conventional jet fuel and deliver the blended jet fuel to Changi Airport’s fuel hydrant system in two shipments, occurring in the second and fourth quarters of 2024, respectively.
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This development marks the first direct supply of Nestle’s SAF to airlines at Changi Airport, bolstering Singapore’s end-to-end SAF supply chain capabilities. It follows the expansion of Neste’s Singapore refinery in May 2023, which can now produce up to a million tonnes of SAF annually, making it the world’s largest SAF production facility.
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Neste’s Sustainable Aviation Fuel (SAF) can reduce up to 80% of greenhouse gas (GHG) emissions throughout its life cycle, as it is derived entirely from renewable waste and residue raw materials. Moreover, it integrates with existing aircraft engines and fuelling infrastructure when blended with conventional jet fuel.
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Singapore Airlines’ Chief Sustainability Officer, Ms Lee Wen Fen, said that this agreement with Neste is an important milestone in the SIA Group’s journey to have at least 5% sustainable aviation fuel in its total fuel uplift by 2030. She also emphasized the critical role of close collaboration with partners and stakeholders in Singapore and globally in achieving long-term decarbonization goals.
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Beginning in May 2024, SIA will sell 1,000 SAF Book & Claim Units (BCUs) to its corporate travellers, shippers, and freight forwarders. Each BCU corresponds to one tonne of neat SAF and its linked reduction in carbon dioxide emissions. By purchasing SAF BCUs, corporate travellers, shippers, and freight forwarders can claim the environmental benefits associated with their business flights and operations.
