The Civil Aviation Authority of Singapore (CAAS) has established the Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo) to centralise the procurement of sustainable aviation fuel (SAF) for Singapore’s air hub. This initiative supports the national SAF policy, with SAFCo set up as a non-profit entity wholly owned by CAAS. Tan Seow Hui, a seasoned leader in energy and aviation, has been appointed as the founding Chief Executive Officer.
SAFCo’s creation follows the recent amendment of the Civil Aviation Authority of Singapore Bill, empowering CAAS to implement SAF policies and collect a SAF Levy. This levy will fund SAF procurement, aiming for a 1% SAF target by 2026, with plans to increase this to 3–5% by 2030. SAFCo will procure SAF through a competitive tender process, ensuring suppliers meet international sustainability standards.
SAFCo will also aggregate voluntary SAF demand from organisations looking to reduce their carbon footprint. This approach allows businesses to benefit from economies of scale and access competitively priced SAF without setting up their own procurement systems.
The immediate focus for SAFCo includes establishing governance frameworks, levy collection systems, and engaging stakeholders ahead of the first SAF procurement in 2026. SAFCo will also support the development of the SAF supply ecosystem in Singapore and the region, encouraging investment in SAF production capacity.
Han Kok Juan, Director-General of CAAS and Chairman of SAFCo, stated, “Through SAFCo, we want to get the best value for the SAF Levy collected and activate a SAF ecosystem.” Tan Seow Hui added, “By working closely with airlines, businesses, and suppliers, we aim to facilitate greater SAF adoption in the region.”
