Singapore's Green Flight Ambition Takes Off: Google, Airlines Join Landmark SAF Procurement Trial
SINGAPORE — In a significant move to decarbonize air travel, a coalition of global and regional giants—from tech leader Google to flag carrier Singapore Airlines—has committed to a first-of-its-kind trial for the centralized procurement of Sustainable Aviation Fuel (SAF). This voluntary pilot, announced Monday by the Civil Aviation Authority of Singapore (CAAS), serves as a crucial dry run for the city-state's ambitious plan to impose a green levy on all departing flights starting in October.
The initiative will be managed through the Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo), a new entity established to oversee the collection and deployment of levy funds. The nine participating firms, which also include DBS Bank, Temasek, and Boston Consulting Group, will help SAFCo stress-test the operational, commercial, and accounting frameworks needed to meet an initial goal of blending 1% SAF on flights from Singapore. The long-term target is more aggressive: achieving 3-5% SAF adoption by 2030.
"Sustainable aviation fuel is a critical, albeit nascent, lever for the decarbonization of the aviation sector," said Vrushali Gaud, Google’s director of climate operations, in the CAAS statement. "Collaborative efforts like this pilot are essential to de-risk the market and build a scalable SAF ecosystem."
The financial mechanism underpinning this push is the upcoming green levy. Applied to tickets sold from April 1 for departures from October, it will see passengers contribute up to S$41.60 (US$32.73) per ticket. These funds will be channeled to SAFCo exclusively for SAF purchases—fuel typically derived from waste oils or agricultural residues.
The road ahead remains steep. SAF currently costs two to five times more than conventional jet fuel, a primary barrier to widespread adoption. Global production is also lagging. The International Air Transport Association (IATA) projects SAF output will reach only 2.4 million tons in 2026, up from 1.9 million tons last year. This would represent a mere fraction of total jet fuel demand.
Singapore's centralized model, if proven viable, could offer a blueprint for other nations struggling to jumpstart SAF usage. By aggregating demand and guaranteeing offtake through the levy, the city-state aims to provide producers with the market certainty needed to invest in scaling up production.
Voices from the Industry:
"This is pragmatic leadership," said Michael Chen, a sustainable finance analyst based in Hong Kong. "Singapore is creating a tangible demand signal in a market plagued by the 'chicken-and-egg' problem of supply and cost. This trial is about building the plumbing for a green aviation economy."
"Another passenger tax disguised as environmentalism," countered Sarah Lim, a frequent business traveler and marketing director. "S$40 might seem small, but it adds up. We're being asked to pay a premium for a fuel that barely exists, while airlines and big tech get the green credentials. Where's the massive parallel investment in truly disruptive technology?"
"The collaborative aspect is key," noted Dr. Arjun Patel, a researcher at a Southeast Asian energy think tank. "Having corporate buyers like Google and OCBC Bank in the mix diversifies the risk and brings cross-sector expertise. The real test will be whether this model can actually help bring down the price premium of SAF over the next five years."
The other participants in the trial are Changi Airport Group, investment firm GenZero, and budget airline Scoot.