The Civil Aviation Authority of Singapore (CAAS) has launched a tender to engage consultancy services to study and develop a structural offtake mechanism for Sustainable Aviation Fuels (SAF) in Singapore, to support the adoption of SAF at Changi Airport and boost Singapore’s competitiveness as a sustainable air hub.
The study will commence in the first quarter of 2023 and will take about four months.
Han Kok Juan, Director-General of CAAS, said, “SAF is the key pathway for the decarbonisation of the aviation sector. The setting up of a SAF offtake mechanism is an important next step in CAAS’s effort to catalyse the development of a self-sustaining ecosystem and flow of funds for SAF in Singapore. It will encourage greater SAF adoption at Changi Airport and help create long-term, predictable demand to incentivise capital-intensive investments in SAF production and help drive down price over time.”
The development of the SAF offtake mechanism is one of the 15 recommendations submitted by the International Advisory Panel (IAP) on Sustainable Air Hub in September 2022
The key Terms of Reference of the study are to perform horizon scanning of the various models for structural offtakes, considering sustainability goals, air hub competitiveness and level-playing field.
The study will align on the objectives, design principles and guardrails, keeping in view Singapore’s unique context and also map preferred models versus Singapore objectives, design principles and guardrails to shortlist the structural offtakes mechanisms for Singapore.
In February 2022, CAAS partnered Singapore Airlines, Temasek, ExxonMobil and Neste in a SAF Pilot to advance the use of SAF in Singapore. The first batch of blended SAF was delivered to Changi Airport in July 2022, and the sale of SAF credits was launched in June 2022. In October 2022, Singapore signed an agreement with International Civil Aviation Organisation (ICAO) to provide and receive assistance, capacity-building and training (ACT) on SAF under the ICAO ACT-SAF programme.
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