SINGAPORE Airlines : C6L 0% (SIA) has agreed to purchase one thousand tonnes of sustainable aviation fuel from renewable fuel producer Neste, the national carrier announced on Monday (May 6).
This will make SIA and its budget airline Scoot the first carriers to receive sustainable aviation fuel produced at Neste’s Singapore refinery. It will also be Neste’s first direct supply of the fuel to airlines at Changi Airport.
Neste will blend the sustainable aviation fuel – known as neat Neste MY Sustainable Aviation Fuel – with conventional jet fuel, as per safety requirements. It will deliver the blended jet fuel to Changi Airport’s fuel hydrant system in two batches: first in the second quarter of this year, and the second in Q4.
The sustainable aviation fuel is fully made from renewable waste and residue raw materials, and reduces greenhouse gas emissions by up to 80 per cent over its life cycle, Neste said.
The agreement is an “important milestone” in SIA’s journey to have at least 5 per cent of sustainable aviation fuel in its total fuel uplift by 2030, said the group’s chief sustainability officer Lee Wen Fen.
From May, SIA will also offer 1,000 sustainable aviation fuel Book and Claim Units (BCUs) that its corporate travellers, shippers, and freight forwarders can purchase. Each BCU represents one tonne of neat sustainable aviation fuel with its associated carbon dioxide reduction benefit.
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Purchasers can claim the associated environmental benefits for flights related to their business travel and operations, “validating the demand for (sustainable aviation fuel) BCUs and supporting the development of the nascent (sustainable aviation fuel) industry”, SIA said.
An industry standard known as the Roundtable on Sustainable Biomaterials Book and Claim system will be used to ensure the traceability and credibility of the transactions.
Alexander Kueper, Neste’s vice-president for renewable aviation, expressed hope that the delivery of sustainable aviation fuel to SIA, coupled with the recently announced national sustainable aviation fuel target, will encourage the wider adoption of such fuels across the Asia-Pacific.
“We are looking forward to expanding our cooperation with SIA as well as supplying visiting carriers at Changi Airport,” he said.
SIA shares ended Monday at S$6.55, up S$0.03 or 0.5 per cent.
