Alphabet Inc.’s Google, Singapore Airlines Ltd. and DBS Group Holdings Ltd. are among nine companies set to test Singapore’s plan for centralised procurement of sustainable aviation fuel (SAF), as the city-state steps up efforts to cut emissions from air travel.
The companies will participate in a voluntary trial to purchase SAF through the Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo), which is being set up ahead of a world-first green levy on departing flights from October.
According to the Civil Aviation Authority of Singapore, the trial will help SAFCo refine the operational, commercial and accounting processes needed to meet Singapore’s initial target of using 1% SAF for flights departing the country. The adoption rate is expected to rise to between 3% and 5% by 2030.
Han Kok Juan, Director-General of CAAS, said the strong commercial response was encouraging and expressed hope that participation would widen as awareness grows. He added that by pooling both regulated and voluntary demand for sustainable aviation fuel, Singapore aims to build a robust and efficient SAF ecosystem that supports a more resilient and affordable fuel supply for the aviation sector.
Tan Seow Hui, Chief Executive Officer of SAFCo, said the voluntary trial marks a key step in strengthening confidence and capability across Singapore’s SAF ecosystem. She noted that aggregating demand and working closely with airlines, corporate partners and government agencies would help demonstrate a practical and scalable model for SAF procurement and emissions allocation over time.
“Sustainable aviation fuel is a critical lever for the decarbonisation of the aviation sector,” said Vrushali Gaud, Google’s director of climate operations. “Developing a scalable SAF ecosystem is crucial for increasing supply.”
Singapore will introduce a green levy on air tickets sold from 1 April for flights departing from October. Passengers will pay up to S$41.60 (US$32.73), with proceeds channelled to SAFCo to fund SAF purchases. SAF is typically produced from waste oils or agricultural feedstock.
Despite growing policy support, SAF adoption remains constrained by cost, with prices typically two to five times higher than conventional jet fuel. The International Air Transport Association expects global SAF production growth to slow in 2026, reaching around 2.4 million tonnes, up from about 1.9 million tonnes last year. SAF accounted for just 0.6% of total jet fuel consumption in 2025.
Other participants in the Singapore trial include Boston Consulting Group Inc., Changi Airport Group Singapore Pte, GenZero, Oversea-Chinese Banking Corp., Temasek Holdings Pte and Scoot, the aviation authority said.
