Alphabet Inc’s Google, Singapore Airlines Ltd and DBS Group Holdings Ltd are among companies that will test the city-state’s plan for central procurement of sustainable aviation fuel, as officials aim to curb emissions from air travel.
A total of nine firms plan to join the voluntary trial to purchase SAF through the Singapore Sustainable Aviation Fuel Company Ltd, or SAFCo, an entity being established under plans to begin charging a world-first green levy on departing flights from October.
The tests will allow SAFCo to refine operational, commercial and accounting processes required to meet an initial plan for flights from Singapore to use 1 percent sustainable fuel, the Civil Aviation Authority of Singapore said Monday in a statement. Singapore aims to achieve an adoption rate of 3 percent to 5 percent by 2030.
“Sustainable aviation fuel is a critical lever for the decarbonization of the aviation sector,” Vrushali Gaud, Google’s director of climate operations, said in the statement. “Developing a scalable SAF ecosystem is crucial for increasing supply.”
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Singapore will apply a green levy on air tickets sold from April 1 for flights departing the country from October. Air passengers will pay as much as S$41.60 ($32.73), with the funds to be directed to SAFCo for the purchase of SAF — typically made from waste oils or agricultural feedstock.
Adoption of sustainable fuels for aviation continues to face challenges, with costs typically between two and five times higher than regular jet fuel.
The International Air Transport Association expects SAF production growth to slow in 2026, and reach 2.4 million tons from around 1.9 million tons last year. SAF production represented only 0.6 percent of total jet fuel consumption in 2025, the association said.
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Boston Consulting Group Inc, Changi Airport Group Singapore Pte, GenZero, Oversea-Chinese Banking Corp, Temasek Holdings Pte, and Scoot will also participate in the Singapore trial, the country’s aviation authority said in its statement.
