Sustainable Aviation
Singapore Launches SAFCo to Centralize Sustainable Aviation Fuel Procurement
Singapore establishes SAFCo to centralize sustainable aviation fuel buying, funded by a passenger levy, aiming for greener aviation by 2030.
Singapore’s Strategic Leap: Centralizing Green Fuel to Secure a Sustainable Sky
The global aviation industry stands at a critical juncture, facing the immense challenge of decarbonization. As air travel continues to grow, its environmental footprint, currently accounting for 2-3% of global carbon emissions, is under intense scrutiny. In response, the sector has committed to an ambitious goal of achieving net-zero emissions by 2050. A key pillar of this transition is SAF, a cleaner alternative to traditional jet fuel. However, its widespread adoption is hampered by significant hurdles, namely limited production and high costs.
In a decisive move to address these challenges and cement its status as a forward-thinking aviation hub, Singapore has announced a novel strategy. The city-state will establish a centralized, state-owned entity to manage the procurement of SAF for airlines operating out of its world-class airports. This initiative, a core component of the nation’s Sustainable Air Hub Blueprint, aims to create a stable demand signal for SAF producers, secure more competitive pricing through bulk purchasing, and accelerate the aviation sector’s journey toward Sustainability. The plan is not just a policy statement; it’s a structured, funded approach that could set a precedent for the rest of the world.
This new model is underpinned by a passenger levy, demonstrating a shared-responsibility approach to a complex global problem. By creating a dedicated, non-profit company to oversee this process, Singapore is building an ecosystem designed to stimulate investment, drive down costs, and ensure a steady supply of green jet fuel. The move is being watched closely by international bodies and other nations, as its success could provide a scalable blueprint for decarbonizing the skies globally.
Introducing SAFCo: A New Engine for Green Aviation
At the heart of Singapore’s strategy is the Singapore Sustainable Aviation Fuel Company (SAFCo), a wholly-owned, non-profit subsidiary of the Civil Aviation Authority of Singapore (CAAS). Set to become operational in 2025, SAFCo’s primary mandate is to aggregate the demand for SAF from all Airlines at Changi and Seletar airports. By acting as a single, large-scale buyer, the entity aims to overcome the fragmented nature of airline fuel purchasing and provide the market with a strong, consistent demand signal. This is expected to encourage producers to invest in scaling up production, which is crucial for bringing down the high cost of SAF.
The financial engine for this initiative will be a levy imposed on all passengers departing from Singapore, scheduled to take effect in 2026. This “polluter pays” principle is designed to be equitable, with costs varying by flight distance and class of travel. Early estimates suggest the levy for an economy class ticket could be around S$3 for short-haul flights, S$6 for medium-haul, and S$16 for long-haul journeys. The final figures are anticipated to be confirmed by the end of 2025, providing clarity to both travelers and airlines. This funding mechanism ensures that the procurement of cleaner fuel is directly supported by the users of the aviation services.
Leadership for SAFCo has been drawn from both the public and private sectors to ensure a blend of regulatory oversight and industry expertise. The company’s board will be chaired by Han Kok Juan, the Director-General of CAAS, ensuring alignment with national aviation policy. The appointment of Tan Seow Hui, a former executive from Shell’s low-carbon solutions division, as chief executive brings deep industry knowledge and a practical understanding of the energy transition. This leadership structure is designed to navigate the complexities of the nascent SAF market effectively.
“Through SAFCo, we want to get the best value for the SAF levy collected and activate a SAF ecosystem which will help advance sustainable aviation and create new economic opportunities for Singapore and beyond.”, Han Kok Juan, Director-General of CAAS and Chairman of SAFCo.
The Blueprint for a Sustainable Hub
The creation of SAFCo is not an isolated policy but a critical pillar of the comprehensive Singapore Sustainable Air Hub Blueprint, which was unveiled in February 2024. This blueprint is the nation’s roadmap to achieving net-zero aviation emissions by 2050. The strategy acknowledges that SAF is the most significant tool available for decarbonization, projected to account for approximately 65% of the required carbon emission reductions. The initial targets are clear: SAF is to constitute 1% of all jet fuel used at Singapore’s Airports in 2026, with an ambition to increase this to 3-5% by 2030.
These Strategy, while seemingly modest, represent a significant step forward given the current state of the global SAF market. Globally, SAF production accounts for less than 0.1% of total jet fuel consumption. The International Air Transport Association (IATA) projects that even with production doubling in 2025, it will still only meet 0.7% of the industry’s needs. Singapore’s mandated targets, therefore, place it at the forefront of SAF adoption and are intended to catalyze market growth. The centralized procurement model is designed to de-risk the process for both airlines and producers, creating a more stable and predictable market environment.
The initiative also has implications beyond Singapore’s borders. The CAAS has actively shared its centralized procurement concept with the International Civil Aviation Organization (ICAO), positioning it as a potential model for other countries. As nations worldwide grapple with how to implement their own decarbonization strategies, Singapore’s proactive and structured approach offers a tangible example. It aligns with a growing global trend of government mandates for SAF usage, seen in regions like the European Union and the United Kingdom, which are collectively pushing the industry toward a more sustainable future.
Conclusion: Charting a Greener Course for Global Aviation
Singapore’s establishment of a centralized company for SAF procurement marks a pragmatic and pioneering step in the aviation industry’s fight against climate change. By directly addressing the core challenges of high cost and uncertain demand, the SAFCo model presents a clear, actionable plan. It moves beyond pledges and commitments to create a tangible mechanism for change, funded by a transparent passenger levy. This strategic initiative not only advances Singapore’s own ambitious environmental goals but also reinforces its position as a global leader in aviation innovation.
The success of this model could have a ripple effect across the globe, providing a blueprint for other nations seeking to accelerate their transition to sustainable aviation. As SAFCo begins its operations, the industry will be watching closely to see if this centralized approach can indeed stimulate production, stabilize prices, and make green jet fuel a viable, mainstream reality. Ultimately, Singapore’s bold move is more than just a national policy; it’s a critical test case in the collective, global effort to ensure that the future of air travel is environmentally sustainable.
FAQ
Question: What is SAFCo?
Answer: SAFCo, the Singapore Sustainable Aviation Fuel Company, is a new state-owned, non-profit entity created to centralize the procurement of sustainable aviation fuel (SAF) for airlines operating at Singapore’s Changi and Seletar airports.
Question: How will the purchase of SAF be funded?
Answer: The procurement will be funded by a levy on all passengers departing from Singapore, which is set to begin in 2026. The levy amount will vary based on the flight distance and travel class.
Question: What are Singapore’s targets for SAF usage?
Answer: Singapore aims for SAF to make up 1% of all jet fuel used at its airports in 2026, with a goal to increase this to between 3% and 5% by 2030.
Sources:
Photo Credit: CNA – Lim Li Ting
Sustainable Aviation
KBR PureSAF Technology Selected for Kazakhstan First SAF Plant
KBR licenses PureSAF technology for Kazakhstan’s first SAF facility, using an alcohol-to-jet process with domestic feedstocks.
Global engineering firm KBR announced on August 24, 2026, that it secured a contracts to license its proprietary PureSAF technology and provide engineering design for Kazakhstan’s inaugural Sustainable Aviation Fuel (SAF) production facility. The project, developed in partnership with KazMunayGas-Aero LLP (KMG-Aero) and KazFoodProducts (KFP), will utilize domestic agricultural feedstocks to produce low-carbon aviation fuel via an alcohol-to-jet (AtJ) process.
In a press release detailing the contract award, KBR confirmed the agreement supports Kazakhstan’s strategic objective to establish itself as an international aviation hub while advancing aviation decarbonization. The planned facility will leverage technology developed in collaboration with Swedish Biofuels AB to convert ethanol into drop-in aviation fuel.
Technology and Project Scope
The facility will utilize KBR’s PureSAF technology, an alcohol-to-jet pathway designed to process agricultural feedstocks into sustainable aviation fuel. The foundational trilateral agreement covering the Process Design Package (PDP) and technology licensing was signed by KBR, KMG-Aero, and KFP in Astana on July 23, 2026. KBR, which employs approximately 37,000 people and operates in 28 countries, will provide the engineering framework required to scale the AtJ process for commercial output.
KBR Sustainable Technology Solutions President Jay Ibrahim stated the company is honored to support the national commitment to reduce greenhouse gas emissions.
“KBR’s PureSAF is a feed-flexible, bankable technology that is designed to deliver high SAF yields and supports the project across the full lifecycle. We look forward to closely collaborating and supporting the successful execution of this landmark SAF project,” Ibrahim said.
Kazakhstan’s Aviation Decarbonization Strategy
The KBR contract follows a series of government initiatives aimed at building a domestic SAF supply chain. On August 4, 2026, Kazakh Prime Minister Olzhas Bektenov and Dr. Peter Lee of Hong Kong-based Full Vision Capital signed a memorandum of understanding to explore creating a green aviation fuel ecosystem in the city of Alatau. This proposed ecosystem would cover the full production cycle, from cultivating agricultural feedstock to manufacturing the finished product.
These infrastructure investments align with recommendations from global aviation regulators and industry groups. In April 2026, the International Air Transport Association (IATA) emphasized that continued investment in SAF, alongside new airport infrastructure, is critical for Kazakhstan to capitalize on global passenger and cargo traffic and strengthen its domestic aviation sector.
AirPro News analysis
The KBR contract award represents a concrete technical step in Kazakhstan’s ambition to localize SAF production, but several commercial variables remain undefined. The August 24 announcement did not disclose the financial value of the engineering contract, the projected production capacity of the facility, or a target completion date. We note that while the alcohol-to-jet pathway is a proven method for SAF production, scaling agricultural feedstock supply-chain domestically will be critical to the plant’s long-term viability. The parallel involvement of Full Vision Capital suggests the government is actively working to finance and structure this agricultural supply chain in the Alatau region to ensure the KBR-designed facility has the necessary inputs to operate at scale.
Sources: KBR
Photo Credit: Montage
Sustainable Aviation
Syzygy Plasmonics and IFC Partner on SAF Projects in Latin America
Syzygy Plasmonics and IFC sign a framework to develop SAF projects in Latin America, starting with a 350,000-gallon facility in Uruguay.
Syzygy Plasmonics and the International Finance Corporation (IFC) announced a framework agreement on August 18, 2026, to develop a pipeline of SAF projects across Latin America, beginning with a commercial-scale facility in Uruguay.
The partnership, detailed in a press release issued by Syzygy Plasmonics, pairs the company’s proprietary light-driven reactor technology with the IFC’s technical and commercial advisory services. The initiative targets emerging markets by utilizing regional renewable energy and biogas feedstocks to produce lower-carbon alternatives to conventional jet fuel.
The NovaSAF-1 project in Uruguay
The first project under this framework is NovaSAF-1, located in Durazno, Uruguay. The facility is projected to produce an estimated 350,000 gallons of SAF annually. Syzygy Plasmonics has set a target year of 2028 for the commencement of commercial-scale operations and initial fuel deliveries from the site.
NovaSAF-1 will utilize biogas sourced from the nearby Estancias Del Lago powdered milk plant. This biogas will be combined with Uruguayan renewable electricity to produce synthetic paraffinic kerosene. The production process integrates Syzygy’s light-driven technology with Fischer-Tropsch technology licensed from Velocys to maximize fuel output. According to Syzygy Plasmonics, this process yields an estimated reduction in lifecycle greenhouse gas emissions of up to 90 percent compared with conventional jet fuel.
Commercial backing and offtake agreements
The IFC framework agreement follows established commercial commitments for the NovaSAF-1 facility. On January 20, 2026, global commodities group Trafigura signed a binding six-year offtake agreement to purchase the entire production volume from the Uruguayan plant. The agreement also includes an option for Trafigura to purchase additional volumes from future Syzygy projects.
Syzygy Plasmonics CEO Trevor Best described the commercial arrangements as a critical step toward commercial-scale impact and disrupting the SAF market. The IFC, a member of the World Bank Group, will provide advisory support to help scale these operations across the region.
“The transition to lower-carbon aviation will depend on technologies that are not only innovative, but commercially viable and scalable,” said Raphaël Eskinazi, IFC Regional Investment Manager for Manufacturing and Forests in Latin America and the Caribbean. “IFC’s role is to help bridge that transition: supporting pioneering projects that can mobilize private capital, demonstrate new business models and create pathways for broader market adoption across emerging economies.”
AirPro News analysis
We view the alignment of IFC advisory services, Trafigura’s guaranteed offtake, and Velocys’ established Fischer-Tropsch technology as a significant de-risking mechanism for Syzygy Plasmonics. Scaling novel SAF production methods, particularly those categorized as Renewable Fuels of Non-Biological Origin (RFNBO), typically faces steep financing hurdles. By securing a guaranteed buyer for 100 percent of the initial plant’s output before finalizing the IFC framework, Syzygy has demonstrated a clear path to revenue.
Latin America presents a highly favorable environment for RFNBO production. The region offers abundant agricultural waste for biogas and a growing grid of renewable electricity. If NovaSAF-1 meets its 2028 production targets, the framework agreement with the IFC positions Syzygy to replicate this model rapidly across other agricultural and renewable energy hubs in the Southern Hemisphere.
Photo Credit: Syzygy Plasmonics
Sustainable Aviation
UK, Google and NATS Launch Contrail Avoidance Trial
Operation Blue Skies is a £5M, 30-month trial targeting contrail reduction across Shanwick oceanic airspace.
A consortium led by the UK government, Google, and air navigation service provider NATS has launched a £5 million, 30-month trial to mitigate aviation-induced warming contrails across the entire Shanwick oceanic airspace.
Announced on August 18, 2026, in a Google press release, “Operation Blue Skies” marks the commercial aviation industry’s first attempt to implement contrail avoidance at the scale of an entire flight corridor rather than on a per-airline basis. The initiative targets a phenomenon responsible for approximately one-third of the sector’s total climate impact.
Scaling AI for airspace-wide mitigation
The program will conduct two operational trials during the winters of 2026-2027 and 2027-2028. Testing will take place exclusively within the NATS-controlled Shanwick oceanic airspace, which encompasses the eastern half of the North Atlantic corridor. According to Google, this specific airspace accounts for roughly 5 percent of global contrail warming.
Google UK is participating on a pro-bono basis, providing a £1.4 million in-kind contribution that includes artificial intelligence research, engineering resources, and computing infrastructure. Google Technical Program Manager Paul Hodgson and Senior Program Manager Chaim Langermann described the initiative as “the world’s first state-backed trial to avoid contrails at the scale of an entire oceanic airspace.”
The broader consortium includes the UK Department for Transport (DfT), the Met Office, Contrails.org, Imperial College London, the University of Cambridge, and the Aerospace Technology Institute (ATI).
“We’re partnering with Google to back British experts and innovators to find practical ways to make flying cleaner. This is a world-first, and it is British ingenuity leading the way. By testing small tweaks to flight paths over the Atlantic, we can cut the vapour trails left behind by planes,” said UK Government Minister for Aviation, Maritime and Freight Keir Mather, according to reporting by Smart Cities World.
Transitioning from individual flights to systemic integration
Operation Blue Skies builds upon earlier research validating the use of AI-powered forecasts to predict and avoid contrail-forming regions. Google Research previously partnered with American Airlines, EUROCONTROL’s Maastricht Upper Area Control Centre (MUAC), and FlightKeys to demonstrate that contrail avoidance is scientifically and operationally viable for individual flights.
The new trial shifts the operational coordination to the air navigation service provider. By integrating predictive models directly into the airspace management level, NATS and its partners aim to evaluate how contrail mitigation impacts overall airspace capacity, controller workload, and flight efficiency across a high-density oceanic routing system.
AirPro News analysis
We view the shift from individual airline dispatch trials to an air navigation service provider-led model as a critical maturation in aviation sustainability efforts. If NATS can successfully integrate AI-driven contrail forecasting into the Shanwick oceanic clearance process without degrading airspace capacity or significantly increasing fuel burn, it could establish a blueprint for global air traffic management. The winter testing windows are particularly relevant, as atmospheric conditions during these months are highly conducive to persistent contrail formation over the North Atlantic. The results of this 30-month program will likely dictate whether regulators and service providers mandate contrail avoidance routing in the next decade.
Sources: Google Blog
Photo Credit: Google
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