The Civil Aviation Authority of Singapore (CAAS) has established the Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo), a non-profit entity dedicated to centralizing the procurement of sustainable aviation fuel (SAF). This initiative aims to support the implementation of the national SAF policy and position Singapore as a regional leader in the transition to cleaner aviation. SAFCo, chaired by Han Kok Juan, Director General of CAAS, and led by Tan Seow Hui as founding CEO, will manage both regulated and voluntary SAF procurement.

Starting in 2026, SAFCo will centralize the procurement of SAF using the SAF Fund to achieve a target of 1% SAF on all flights departing from Singapore, with a goal of 3% to 5% by 2030. The fuel will be sourced through transparent tenders among suppliers that meet international standards such as CORSIA, and the financial flows from the SAF tax will enable long-term contracts and more competitive pricing. In addition, SAFCo will integrate voluntary demand from companies wishing to offset their carbon footprint by purchasing SAF and benefiting from its environmental attributes.

With this new procurement model, Singapore aims to strengthen its sustainable fuel ecosystem, promote regional investment, and accelerate the decarbonization of air transport. SAFCo will present further details of its programs at the Singapore Airshow in February 2026, solidifying its role as a catalyst for sustainable aviation in Asia.

Source and Credits to CAAS

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