Following a pilot test last year on the use of sustainable aviation fuel (SAF) at Changi Airport, the Civil Aviation Authority of Singapore (CAAS) has launched a tender for consultants to help develop an offtake mechanism for renewable fuels going forward. The move follows the authority’s desire to boost Singapore’s competitiveness as a sustainable aviation gateway and is being initiated following the recommendations of the International Advisory Panel on Sustainable Air Hub in September.
A study—expected to last for a year—will begin shortly and among its methodology will be analyses to assess the impact on SAF demand across various segments, with the goal of designing an operating model to implement structural offtake, including the flow of SAF credits and physical SAF.
“The setting up of a SAF offtake mechanism is an important next step in CAAS’s effort to catalyze the development of a self-sustaining ecosystem and flow of funds for SAF in Singapore," explained CAAS director-general Han Kok Juan, who added that the renewable fuel is a key pathway to enable aviation’s decarbonization ambitions. “It will encourage greater SAF adoption at Changi Airport and help create long-term, predictable demand to incentivize capital-intensive investments in SAF production and help drive down price over time.”