SINGAPORE — Singapore Airlines Group (SIA) is accelerating its decarbonization journey with strategic agreements signed in Q1 2025 with Neste and World Energy, securing 1,000 tonnes of neat sustainable aviation fuel (SAF) and 2,000 tonnes of SAF certificates. These transactions, projected to cut more than 9,500 tonnes of CO₂ emissions, underscore SIA’s commitment to scaling SAF adoption while deepening its understanding of diverse sourcing and certification pathways.
The Neste deal marks SIA’s second purchase of CORSIA-eligible neat SAF from the company’s Singapore refinery, which has a capacity of 1 million tonnes annually, making it the world’s largest SAF production facility. The SAF, produced from renewable waste like used cooking oil, was blended locally and uplifted at Singapore Changi Airport, reinforcing the city-state’s SAF ecosystem. This direct supply chain integration, following the refinery’s 2023 expansion, positions Changi as a regional hub for low-carbon aviation fuels.
Complementing physical SAF procurement, SIA acquired emissions reductions equivalent to 2,000 tonnes of CORSIA-eligible SAF from U.S.-based World Energy via the book-and-claim model. This approach allows SIA to claim environmental benefits without physical fuel delivery, offering flexibility in regions where SAF logistics are constrained. The model, increasingly vital for scaling SAF adoption, supports airlines in meeting sustainability goals while navigating supply chain limitations.
“These agreements represent important steps in the SIA Group’s broader strategy to scale up its use of sustainable aviation fuel.” — Ms. Lee Wen Fen, Chief Sustainability Officer, Singapore Airlines
“These agreements represent important steps in the SIA Group’s broader strategy to scale up its use of sustainable aviation fuel,” said Ms. Lee Wen Fen, Chief Sustainability Officer at Singapore Airlines. “By working with different suppliers and exploring diverse sourcing models and certification pathways, we gain crucial insights into the SAF landscape and we can better understand the pathways towards a more sustainable aviation ecosystem.”
SIA’s efforts align with Singapore’s national SAF targets, which mandate 1% SAF use from 2026, rising to 3–5% by 2030. The airline’s participation in the Green Fuel Forward campaign, launched by the World Economic Forum and Singapore’s GenZero, further amplifies regional SAF demand. The initiative fosters partnerships to enhance SAF awareness and adoption across Asia-Pacific, a critical market for global aviation decarbonization.
The deals reflect SIA’s dual focus on operational integration and market development. By leveraging both physical SAF and book-and-claim certificates, the airline is testing scalable models to meet its medium-term goal of 5% SAF use by 2030 and long-term net-zero target by 2050. However, challenges remain, including SAF’s price premium (2–5 times higher than conventional jet fuel) and limited global supply, which was just 0.3% of aviation fuel in 2024. SIA’s strategic partnerships and regional advocacy position it as a leader in navigating these hurdles.
As Asia-Pacific airlines lag behind European and North American peers in SAF uptake, SIA’s agreements with Neste and World Energy set a benchmark for integrating innovative sourcing models and local production into a cohesive decarbonization strategy.
