The Singapore Airlines (SIA) Group has signed an agreement with Neste to purchase 1,000 tonnes of neat Neste MY Sustainable Aviation Fuel. This will make SIA and Scoot, the two airlines in the Group, the first carriers to receive Sustainable Aviation Fuel (SAF), produced at Neste’s refinery in the country, at Singapore Changi Airport.
Neste will blend the SAF with conventional jet fuel according to the required safety specifications, and deliver the blended jet fuel to Changi Airport’s fuel hydrant system in two batches – once in the second quarter of 2024 and once in the fourth quarter of this year.
This milestone will also mark the first direct supply of Neste’s SAF to airlines at Changi Airport, reinforcing their end-to-end SAF supply chain capabilities in Singapore. This follows the completion of the expansion of Neste’s Singapore refinery in May 2023. The refinery has the capacity to produce a million tonnes of SAF each year, making it the world’s largest SAF production facility.
Neste’s SAF, which is made from 100% renewable waste and residue raw materials, reduces greenhouse gas emissions by up to 80% over the fuel’s life cycle.
Blended with conventional jet fuel, it seamlessly integrates with existing aircraft engines and fuelling infrastructure.
Alexander Kueper, Vice President Renewable Aviation, Neste, said: “We are proud that Singapore Airlines and Scoot are our first customers benefiting from our integrated supply capabilities into Changi Airport. This supply of locally produced SAF to Changi Airport is a milestone in our journey of supporting the aviation industry and governments in the region to achieve their emissions reduction goals. Singapore is a leading aviation hub in the Asia-Pacific region and this delivery of SAF, as well as the recently announced national SAF target, will hopefully encourage the wider adoption of SAF across the broader Asia-Pacific region. We are looking forward to expanding our cooperation with Singapore Airlines as well as supplying visiting carriers at Changi Airport.”
Lee Wen Fen, Chief Sustainability Officer, Singapore Airlines, said: “This agreement with Neste is an important milestone in the SIA Group’s journey to have a minimum of 5% sustainable aviation fuel in our total fuel uplift by 2030. Close collaboration with our partners and stakeholders, both in Singapore and globally, plays a critical role in our long-term decarbonisation goals. A more sustainable aviation industry will ensure that future generations continue to benefit from the global connectivity, economic prosperity, and people links that air travel fosters.”
Starting from May 2024, SIA will offer 1,000 SAF Book & Claim Units (BCUs) for purchase by its corporate travellers, shippers, and freight forwarders. Each BCU represents one tonne of neat SAF with its associated carbon dioxide reduction benefit. Purchasing SAF BCUs allows corporate travellers, shippers, and freight forwarders to claim the associated environmental benefits for flights related to their business travel and operations, validating the demand for SAF BCUs and supporting the development of the nascent SAF industry. The Roundtable on Sustainable Biomaterials (RSB) Book & Claim system, a trusted industry standard, ensures the traceability and credibility of these transactions.