Coinciding with the start of the 2024 Singapore Airshow, the Singapore government has announced a 1% blending target for sustainable aviation fuel with effect from 2026, rising to 3-5% by 2030, and partly funded by a levy on air fares, making the country the first to ensure departing passengers pay towards helping the transition to lower carbon jet fuel. It has also announced a range of air traffic management initiatives in partnership with other Asia-Pacific nations and pledged increased clean energy production and deployment at its two airports, Changi and Selatar. The measures are contained in the Sustainable Air Hub Blueprint, a strategy document developed by the Civil Aviation Authority of Singapore (CAAS) as the ‘State action plan for the decarbonisation of its aviation sector and sustainable aviation growth’, positioning the island state as a regional driver of cleaner air transport. But the blueprint also makes clear that environmental sustainability must be balanced with the nation’s need to remain a competitive aviation hub.

Singapore’s gentle switch to SAF is a key element of the Sustainable Air Hub Blueprint and reaffirms a gradual but increasing focus by Asia-Pacific nations on more sustainable air transport. It also aligns with the 2030 SAF target of 5% agreed late last year by the Association of Asia Pacific Airlines (AAPA), a collective of 15 carriers including Singapore Airlines.   

“To kickstart SAF adoption in Singapore, flights departing Singapore will be required to use SAF from 2026,” says the report.  “We will aim for a 1% SAF target for a start to encourage investment in SAF production and develop an ecosystem for more resilient and affordable supply. Our goal is to raise the SAF target beyond 1% in 2026 to 3-5% by 2030, subject to global developments and the wider availability and adoption of SAF.”

Acknowledging that global SAF supplies are currently less than 1% of global jet fuel demand, the report says capacity will need to increase exponentially to meet projected demand in 2050, adding: “It is critical that we provide fuel producers with a demand signal to give them the confidence to make further investments in SAF production, and accelerate global SAF production.”

CAAS will introduce an airline passenger levy in 2026 for the purchase of SAF to help achieve usage targets, with price to be based on flight length and class of travel, explaining: “As market for the supply of SAF is still nascent and the price of SAF can be volatile, this approach will provide cost certainty to airlines and travellers.”

It suggests economy class passengers could pay a levy of 3 Singapore dollars (US$2.20) for a short-haul flight, 6 Singapore dollars (US$4.40) for a medium-haul flight and 16 Singapore dollars (US$12) for a long-haul flight.

However, the report also specifies: “Environmental sustainability needs to be balanced with the Singapore air hub’s competitiveness to support the growth of the aviation industry in the upcoming decades. The blueprint demonstrates this resolve and sets out Singapore’s medium-term and long-term targets.”  

It reveals procurement of Singapore’s SAF will be centralised, using the air ticket levies “to aggregate demand and reap economies of scale”, and says businesses and organisations will be invited to purchase the low-or-no carbon fuel through this mechanism to help offset “in a credible and cost-effective manner” the travel carbon emissions generated.

The report acknowledges the activation last year by global renewable fuels company Neste of a refurbished refinery in Singapore’s Tuas industrial zone with capacity to produce up to 1 million tonnes of SAF per year, a tenfold increase, making it the largest SAF production plant currently in operation, but added that more of the fuel was needed.

Currently, most of the SAF provided at the plant is exported to other higher-demand markets, due to lower demand from airlines and lack of SAF blending and use mandates across the Asia-Pacific region.

“The presence of an existing petrochemical sector in Singapore provides a good base for new SAF facilities in Singapore,” says the aviation blueprint. “Nonetheless, given the tremendous increase in SAF production capacity required globally, there is scope for more SAF production to be based in Singapore, which will also support the needs of Changi Airport.”

The report advocates greater SAF production across the Southeast Asia region, and potentially more broadly across Asia and the Pacific, but acknowledges shortages of fuel feedstocks and competing demand from sectors such as shipping, road transport and energy act as a constraint on SAF availability.

“There is a need to widen feedstock availability across different regions to unlock more SAF production globally,” says CAAS. “To do this, there should be consistent rules for acceptability and sustainability requirements for feedstock.

“Singapore promotes the recognition of CORSIA’s sustainability criteria as the accepted basis for the eligibility of SAF. We encourage the industry to adopt a feedstock-neutral approach and not exclude any particular feedstock, as long as it meets the CORSIA sustainability criteria and delivers the required carbon emissions reduction.”

To this end, CAAS has joined in a regional study led by Boeing and the Roundtable on Sustainable Biomaterials to develop a SAF roadmap to identify the availability and sustainability of fuel feedstocks in Southeast Asia, ascertain feasible production pathways and identify potential pilot projects to drive regional SAF development.

Beyond progressing SAF, the blueprint also highlights air traffic management initiatives designed to help increase air transport efficiency while reducing emissions during the next five years, including greater coordination of flights between airspace navigation service providers and techniques to optimise flight paths and trajectories.

The report also specifies a range of initiatives to reduce emissions on the ground including increased generation and use of solar power at Changi and Selatar airports, and transition to clean energy propulsion for all airport vehicles by 2040, commencing with introduction of electric-powered light vehicles including cars, vans, minibuses and some forklifts and tractors from 2025.

Photo: Singapore Airlines

Tony Harrington

Correspondent

Add your content…

• Linkedin
• Twitter
• Email

Renewable fuels producer Neste has officially opened its expanded refinery in Singapore, increasing annual production capacity to 2.6 million tons, of which up to 1 million will be sustainable aviation fuel. The company has also established an integrated SAF supply chain to enable blended fuel to be delivered to airlines at Singapore’s Changi International Airport. It has also conditionally agreed to acquire a minority shareholding in Changi Airport Fuel Hydrant Installation Company (CAFHI), the airport’s fuel storage and infrastructure joint venture. The Singapore government, which is developing the city state as a sustainable aviation hub, welcomed the Neste development as “a significant move”, but said it was insufficient to meet soaring demand for SAF. Transport Minister S Iswaran told an APAC Transport Minsters’ Meeting in Detroit on May 15 that Singapore was considering both incentives and mandates to increase demand and lower the cost of SAF, but warned ‘feedstock nationalism’, through which countries limited the supply of SAF ingredients, threatened to further constrain availability of the fuel.

Neste’s CEO and President, Matti Lehmus, said the €1.6 billion ($1.7bn) upgrade of the Singapore plant, completed in April and officially commissioned this week, was an important milestone in the company’s strategy to increase production of renewable fuels. “It’s a remarkable achievement given the complexity of the project, and that it was carried out during a global pandemic,” he said.

The development initially will increase Neste’s SAF production capacity up to 10-fold per year from 100,000 tons to as much as 1 million, with further expansion to 1.5 million tons by the end of this year when the company completes modifications of another refinery in Rotterdam, and 2.2 million tons in the first half of 2026 when further development of that plant is completed.

Sami Jauhiainen, acting EVP for Neste’s Renewable Aviation division, said neat SAF was produced at the refinery in Singapore’s Tuas region, then sent to a blending facility to be combined with conventional fuel and certified to meet jet fuel standards, before final delivery to airlines at Changi Airport. The company predominantly uses waste oils, fats and other residues to produce its SAF, but is exploring other feedstocks. As well as increasing production capability in Singapore, the upgrade will increase the Tuas plant’s raw material pre-treatment capacity, enabling it to process a broader range of waste and residue raw materials for conversion to sustainable fuels.

“Singapore is a leading aviation hub in the Asia-Pacific region,” said Jauhiainen. “In addition to being a global hub for Neste’s SAF production, we have established an integrated SAF supply chain to Changi Airport to make our product available to an increasing number of regional and international airlines.”

Subject to “fulfilment of customary closing conditions”, the supply chain expansion will include a minority shareholding by Neste in the CAFHI fuel storage and infrastructure joint venture in the airport.

Changi Airport is the latest in a global network through which Neste supplies blended product direct to airlines. Other locations include San Francisco and Los Angeles on the US west coast, and the European cities of Amsterdam and Neste’s corporate base, Helsinki. As well, to broaden distribution, Neste is supplying SAF to a range of fuel marketing companies outside its airports network, including in Japan and New Zealand, as it builds presence in the Asia-Pacific region.  

“Singapore has world-class logistics connectivity enabling efficient transportation of the renewable raw materials as well as final products globally,” added Lehmus. “Also, its world-class education supports the availability of future talents to be part of our production and commercial operations, as well as to enhance research and development in our recently-established Innovation Centre.”

The formal launch of Neste’s Singapore development project coincided with a speech by the country’s Transport Minister, S Iswaran, at the SAF Investment Summit, held as part of the APEC Transport Ministers’ Meeting in Detroit (see article). “There is generally a consensus that this is one of the areas which is going to yield maximum outcomes for us in the near term, in terms of reducing the carbon footprint of aviation,” he said. “The real question is the ‘how’.”

He highlighted supply chain initiatives, strengthening demand-side signals and stronger global collaboration as key areas of focus, adding: “It is quite clear that initiating things on a pilot scale is not a problem. Scaling, because of the cost, is the issue, and we need to deal with this.”

The Minister said Singapore considered it highly important to establish a scientifically-based process to validate the sustainability of feedstock, and alluded to the high availability but low global acceptance of palm oil in Asia. “Presently, the type of available feedstock differs across regions, and despite being recognised by ICAO’s CORSIA regime, some abundant feedstock in the Asia-Pacific region may not be as widely accepted in certain parts of the world, due to perceived higher environmental risks. This variation is understandable, but what we think is important is to establish a process that can validate this consistently.”

Iswaran said Singapore was working closely with Boeing, the Roundtable on Sustainable Biomaterials (RSB) and other stakeholders to assess how member countries of the Association of South East Asian Nations (ASEAN) could leverage potential feedstock supplies across the region to help produce SAF.

“To reduce logistical challenges and stabilise the cost of SAF, we must guard against feedstock nationalism,” he warned.  “Currently the Hydroprocessed Esters and Fatty Acids (HEFA) pathway is the most widely commercialised and viable SAF production option.” Without detailing specific examples, he added: “If the flow of biomass is restricted by countries, the supply of SAF will be further constrained.”

He urged governments to “catalyse investment into more nascent SAF production pathways and technologies” by supporting research and development of processes including alcohol-to-jet and power-to-liquid. “Establishing regional or global green financing networks can also enable us to tap into the growing green financing and carbon trading markets to drive R&D into SAF,” he said.

He reported the Civil Aviation Authority of Singapore was considering both incentives and mandates to drive up the use of SAF, as well as a ‘corporate buyers’ club’, designed to encourage early adopters of more sustainable air travel to act collectively, “thereby aggregating the demand, creating the scale and sending the signals that the industry needs.”  

Strong international collaboration was also essential to support SAF supply and demand initiatives, he said, adding: “One area is harmonising polices and mutually recognising a common set of standards and frameworks on SAF accounting and use. If we do not have that, then we really will have a patchwork of solutions around the world, and for airlines and industry players I think this is going to be a challenge.”

Top and below photos: Neste’s newly expanded refinery in Singapore

Below: Channel News Asia (CNA) report on the opening of the expanded refinery:

The governments of Singapore and New Zealand will consider introducing ‘green lanes’ for travellers between the countries to help encourage consumer use of flights powered by sustainable aviation fuels. The idea is contained in a groundbreaking Sustainable Aviation Arrangement between the countries, which was signed during a visit to Singapore by New Zealand’s Prime Minister, Jacinda Ardern. The agreement is the first bilateral cooperation on sustainable aviation for both countries, which, together with their aviation industries, have each been exploring decarbonisation measures including sustainable aviation fuel, hydrogen propulsion for aircraft and enabling infrastructure. In addition to studying green lanes, the partnership will include collaboration on policies and regulations to support the uptake of SAF, the electrification of aircraft fleets, supporting airport infrastructure, coordination of research and development, and testing and trialling of both SAF and hydrogen, to help guide the creation of a “sustainable aviation ecosystem”. The governments will also share information on ways of decarbonising airport infrastructure and optimising aircraft types and air traffic routes, reports Tony Harrington.

The Sustainable Aviation Arrangement (links here, here and here) forms part of a new ‘green pillar’ in the Singapore-New Zealand relationship, as they transition to low carbon economies. Other elements include cooperation on sustainable shipping and low-or-zero emission vehicles. Prime Minister Ardern said the new aviation pact, signed with Singapore’s Minister of Transport, S Iswaran, “clearly indicates our commitment towards jointly tackling climate change.” In addition to collaboration on technology and strategy, the agreement also includes the creation of new jobs in sustainable aviation and information sharing on the redesign of work processes and professional development.

“We cannot afford to return to business as usual, because that is unsustainable,” said Ardern. “We need to work with trusted partners like Singapore to ensure that environmental sustainability is a core part of our economic strategy. The commitments made are a concrete demonstration of the government and private sector joining together to build a more sustainable future.” She added that following the signing, Air New Zealand, Auckland Airport, Christchurch Airport and the Board of Airline Representatives New Zealand all committed to supporting the deal.

A parallel statement by the Singapore government said: “The Prime Ministers agreed to strengthen the Enhanced Partnership by adding a new pillar on ‘Climate Change and Green Economy’ to better reflect our recognition of the existential threat posed by climate change, and our shared commitment to implement the Paris Agreement, and seize growth opportunities in the green economy. Cooperation under this pillar can include energy transition technology, carbon markets, sustainable transport and waste management as a start.”

At a roundtable on sustainable aviation, Singapore’s Iswaran said the two nations were “natural partners” which had long shared a common perspective on aviation issues, and that their respective national carriers, Singapore Airlines and Air New Zealand, both Star Alliance members, enjoyed a strong relationship.

“We are now extending this partnership and collaborative spirit to address the pressing issue of climate change,” he said. “As we emerge from the Covid-19 pandemic, it is incumbent upon us to redouble efforts for sustainable aviation. Pre-Covid, international aviation accounted for 2% of global carbon emissions. If we fail to act, the sector’s emissions will rise in tandem with the post-pandemic recovery, and more than double by 2050 from 2019 levels. This is clearly not tenable – neither for the sector, nor for its wide range of climate-conscious stakeholders. It’s not viable for small, open economies like Singapore and New Zealand, which both rely on our connectivity with the rest of the world, for our economy and for our people.

“We know that the journey ahead is fraught, not least because of the sector’s heavy reliance on fossil fuels. Low-carbon alternatives such as sustainable aviation fuels are expensive and global volumes are low due to limited pathways and feedstock. To tackle these challenges, we must harness the collective resolve, resources and capabilities of all stakeholders, across the industry and importantly across nations. Hence, this Memorandum of Arrangement on Sustainable Aviation between New Zealand and Singapore is apposite and timely. It will give impetus to information sharing, research and collaborations with industry, in areas such as SAFs and hydrogen-based fuels. This collaboration is more than just a launch point for bilateral cooperation between Singapore and New Zealand on sustainable aviation.  I do believe it can also serve as a catalyst for many more like-minded States to come together to reimagine international aviation, take decisive climate action, and turn our constraints into opportunities.”

The Singapore-New Zealand Sustainable Aviation Agreement follows significant steps in both markets to progress the introduction of SAF and hydrogen aviation fuels. In New Zealand, the government has flagged the introduction of SAF blending requirements for airlines, while Air New Zealand actively explores SAF, electric and hydrogen propulsion, and plans for zero-emission short-haul flights. Regional airline Sounds Air is preparing to introduce electric aircraft, including the still-in-development ES-19 from Sweden’s Heart Aerospace, while key airports are looking at the provision of SAF and clean energy to support electric and hydrogen powered aircraft.  As well, Air New Zealand and Airbus have joined forces to explore the potential and technical requirements of hydrogen-powered aircraft on regional routes within New Zealand, and the airline has flagged the conversion of existing Q300 and ATR-72 aircraft to the new fuel beyond 2030. 

In Singapore the transition to sustainable aviation is also gathering pace, with the Civil Aviation Authority of Singapore (CAAS), Singapore Airlines, Exxon Mobil, waste-to-fuel producer Neste and the state investment company Temasek undertaking a pilot programme to assess the supply, distribution and use of sustainable aviation fuels at Singapore’s Changi International Airport. Exxon Mobil will blend SAF produced by Neste from waste cooking oils and animal fats for the 12-month trial, which is due to begin in July this year when the first batch of blended fuel is delivered to the airport. Singapore Airlines and its low-cost sibling Scoot will then start using the blended fuel on flights from the hub.

In addition to SAF, Singapore is also looking at hydrogen propulsion for aircraft. CAAS, together with Changi Airport Group, Airbus and the energy engineering company Linde, have announced a joint two-year study into developing an aviation hydrogen hub in Singapore, exploring transportation and storage of hydrogen, and its delivery to aircraft at existing and future airports.  

Photo: Changi Airport Group

Last week’s Singapore Airshow reflected a growing focus of the air transport sector on decarbonisation across the Asia-Pacific (APAC) region. Impacted by the recent eruption of Covid’s Omicron variant and onerously imposed government restrictions, the show attracted just 13,000 registered visitors, less than half the 30,000 who attended in 2019, while the number of exhibitors fell by over a third. Although there was a handful of orders for narrowbody passenger aircraft and widebody freighters, many announcements focused on sustainability partnerships and initiatives by airlines, aerospace manufacturers and fuel companies. A significant number of the declarations made at the show underscored the commitment of host nation Singapore to become a sustainable aviation hub and an APAC decarbonisation leader through measures including sustainable aviation fuels, hydrogen propulsion and the use of renewable energy on the ground, reports Tony Harrington.

To guide the strategy, the Civil Aviation Authority of Singapore (CAAS) said it will produce a Singapore Sustainable Air Hub Blueprint by early 2023 and has established a 20-member International advisory panel of industry and technology leaders to develop and progress the plan. Their first meeting was held on the sidelines of the show.

“While the immediate focus of the Singapore air hub is to revive air travel, we cannot lose sight of the longer-term challenge of climate change,” said Singapore’s Minister for Transport and Minister-in-charge of Trade Relations, S. Iswaran. “This is a challenging endeavour, especially at a time when aviation companies are still dealing with the effects of the pandemic,” he said. “It will require strong public-private partnership and cross-sectoral collaboration to innovate and reinvent the aviation ecosystem.”

In the days before the air show, a 12-month pilot programme was announced by CAAS, Singapore Airlines (SIA), Exxon Mobil, waste-to-fuel producer Neste and state investment company Temasek to assess the supply, distribution and use of sustainable aviation fuels at Singapore’s Changi Airport.

During the event, SIA – together with aerospace companies Airbus, Rolls-Royce and Safran, plus the support of aerospace sustainability consultancy Roland Berger – signed the Global Sustainable Aviation Fuel Declaration, an initiative urging airlines, aerospace suppliers and fuel partners to support accelerated development, production and use of SAF. SIA was the first airline to sign, underscoring its commitment to decarbonisation, said Lee Wen Fen, the airline’s SVP Corporate Planning. “Beyond SAF, we also use multiple levers to achieve our goals, including achieving higher operational efficiency and investing in new-generation aircraft.” 

The declaration notes that to achieve a net zero target for global aviation by 2050, it is likely a production capacity in the order of 500 million tonnes of SAF would be required. “Recognising that aviation operates within a complex framework of international regulatory and safety requirements, a large-scale uptake of SAFs will require a collaborative effort from a broad range of organisations, with each playing a different role, from research, to production and logistics, to utilisation,” it says. “We will need to work progressively towards the expansion of SAF globally and regionally, with the intention of maintaining a level playing field.”

Grazia Vittadini, Chief Technology and Strategy Officer, Rolls-Royce, added: “It is important that we combine our efforts and focus into building the momentum required to drive this forward. We are all big advocates for the development of alternative propulsion solutions including hydrogen, hybrid-electric and electric, and we also recognise that SAFs are a key building block to set us on our path towards achieving our long-term decarbonisation goals.” Airbus Chief Technical Officer Sabine Klauke urged other key aviation stakeholders to also sign the declaration. “The challenge is to further increase and encourage the uptake of SAF globally, as well as incentives and long-term policies that encourage SAF use,” she said.

Oil company Shell announced at the show that it would become the first supplier of SAF to operators in Singapore, following the upgrading of its local facility to enable blending of sustainable product with conventional aviation fuel, sourced by Shell Aviation from Neste. The first batch will be blended in Europe, before the task is transferred to Singapore. “Alongside investing in our capabilities to produce SAF, we are also focused on developing the regional infrastructure needed to get the fuel to our customers at their key locations,” said Jan Toschka, Global President, Shell Aviation. To support its aim of globally producing some two million tonnes of SAF per year by 2025, and subject to a final investment decision, Shell has proposed a biofuels facility within its Energy and Chemicals Park in Singapore, with annual capacity to produce 550,000 tonnes of low carbon fuels including SAF.

At its Singapore facility, SIA Engineering Company (SIAEC) has just completed a trial of SAF in a Rolls-Royce Trent 900 engine, which is used to power Airbus A380 aircraft. Conducted with Singapore Aero Engine Services (SAESL), a joint venture of SIAEC and Rolls-Royce, the trial used a 38% blend of SAF, producing 32% lower carbon emissions than conventional fossil jet fuel. “As SIAEC grows its engine services business, we recognise the importance of mitigating potential impact to the environment,” said the company’s CEO, Ng Chin Hwee. “The successful trial using blended SAF at our engine test facility marks SIAEC’s capability and readiness to support the aviation industry towards the net zero carbon emissions goal.”

Dominic Horwood, Services Director of Civil Aerospace, Rolls-Royce, said the SAF engine test was “an important milestone in accelerating the adoption of SAF in MRO services across the Asia-Pacific region, enabling our partners and customers in the transition to low carbon aviation.”

Neste and Japanese industrial partner Itochu Corporation announced plans to increase the availability of SAF in Japan by expanding a partnership they formed in 2020, through which Neste delivered its first SAF into Asia. Under the expanded agreement, Itochu will distribute Neste SAF in Japan, initially at the nation’s two largest international airports, Narita and Haneda in Tokyo. Neste is expanding its Singapore refinery, which it expects to increase SAF production from 100,000 tonnes to up to 1 million tonnes a year by the end of Q1 2023. 

Hydrogen propulsion also featured at the Singapore show. Beyond the SAF developments, CAAS, Changi Airport Group (CAG), Airbus and the energy engineering company Linde, announced a joint two-year study into developing an aviation hydrogen hub in Singapore. The partners will explore the transportation and storage of hydrogen, and its delivery to aircraft at existing and future airports. “While our immediate focus is on sustainable aviation fuel, we also need to explore longer-term alternatives such as hydrogen to better understand the potential and seize opportunities,” explained CAAS Director General Han Kok Juan.

In the lead up to the air show, Airbus partnered with Korean Air, Seoul’s Incheon international airport, and French industrial gases corporation Air Liquide to explore opportunities and infrastructure requirements for hydrogen powered regional flights in South Korea. “The Asia-Pacific region will play a key role as we work towards making climate-neutral aviation a reality,” said Sabine Klauke of Airbus. “By partnering with Changi Airport and with Incheon Airport, Airbus will leverage the operational and technical expertise of two of the world’s leading hubs. The studies we will carry out together reflect the need for a cross-sectoral approach, including manufacturers, airlines, regulators, airports, energy providers and academia. We need bold and coordinated action to achieve our goals.”   

For the first time in Asia, Boeing demonstrated its new 777X widebody jet, for which Singapore Airlines is an early customer. The airline announced at the show orders valued at $2.8 billion for 22 GE9X engines to power the 777X, which Boeing claims will deliver 10% lower fuel use and emissions than its competitors.

Embraer, Rolls Royce, and Norwegian regional operator Widerøe announced a 12-month partnership to study “a conceptual zero emission aircraft”, examining new propulsion technologies including all-electric, hydrogen fuel cell, and hydrogen-fuelled gas turbine powerplants.

“Technological innovations can potentially enable clean and renewable energy to power a new era of regional aviation,” said Arjan Meijer, CEO of Embraer Commercial Aviation. “The aim of our collaboration is to create new flight solutions that serve expanded market segments in a sustainable manner. I strongly believe this could lead to full sustainable connectivity, including very short haul intercity operations.”

Added Andreas Aks, CEO of Widerøe Zero, the air mobility incubator subsidiary of Widerøe: “Working with the world’s leading aerospace technology firms, our aim is to understand how a viable business can be built around zero emissions regional concepts, and to advise the manufacturers on operational requirements and customer expectations to design the best possible and sustainable air mobility service.”

Photo (Airbus): Static display at Singapore Airshow

The Asia-Pacific region, the world’s largest combined air transport market, has edged closer to lower carbon air services with significant initiatives announced in two countries, Singapore and New Zealand, reports Tony Harrington. Commencing in 2022, the Civil Aviation Authority of Singapore (CAAS) will conduct a 12-month trial of sustainable aviation fuels (SAF) at Changi International Airport with Singapore Airlines and state-owned investment company Temasek. It will also partner with Airbus on a two-year feasibility study into production, infrastructure and procedures for hydrogen-powered aircraft operations. In New Zealand, a partnership has been formed between Finnish renewable fuels company Neste and Wellington-based fuel corporation Z Energy to import sustainable aviation fuel and renewable diesel, in line with the government’s commitment to transition to a low-carbon economy. Air New Zealand and Airbus have also announced a partnership to investigate how hydrogen propulsion could be applied to the airline’s domestic operations.

Although Asia-Pacific accounts for 38% of global air journeys, it lags Europe and the US in progressing sustainable aviation. In a post-COP26 communique, the Association of Asia Pacific Airlines (AAPA), which represents 14 operators, said commercialisation of SAF was critical to reducing aviation’s emissions and government support was essential for the industry to reach net zero by 2050, which AAPA members committed to in September.

“Facilities for producing SAF are severely lacking in Asia-Pacific compared to other regions,” said AAPA’s Director General, Subhas Menon. “Taxes, onerous regulations and other penalties would only increase the cost of travel without any benefit to the environment. Conversely, government incentives and investment would contribute to the effective development of sustainable fuels and new energy sources to bolster the industry’s efforts to achieve carbon neutrality by 2050.”   

In Singapore, CAAS, Singapore Airlines and Temasek have issued a Request for Proposal, through which select, unnamed producers and suppliers have been invited to develop and implement plans to provide blended SAF. The pilot programme follows a study by the Singapore government and key industry participants to examine the operational and commercial viability of SAF at Changi Airport, one of the biggest and busiest air transport hubs in the region.

CAAS Director-General Han Kok Juan said sustainability was a key priority for the aviation industry as it recovered from the pandemic and SAF a critical enabler of decarbonisation. “The pilot, which will incorporate the blending of neat SAF in local facilities, certification of blended SAF and delivery to Changi Airport, is a significant step to operationally validate SAF integration options in Singapore. It will provide insights on end-to-end cost components, potential pricing structures for cost recovery and support future policy considerations for SAF deployment,” he said. The announcement of the Singapore SAF trial coincided with the release at the COP26 summit of the SAF Policy Toolkit, developed by the World Economic Forum’s Clean Skies for Tomorrow SAF Ambassador’s Group, of which Singapore is a member (see article).

On the study with Airbus that will look at demand for and production of alternative aviation fuels, Han said recovery from Covid-19 “will not be a return to business-as-usual but an opportunity to rebuild an aviation sector that is more sustainable. It is not a question of whether, but of how, to make flying greener and developing concrete pathways to achieve that goal while ensuring that air travel is still accessible.”

Sabine Klauke, Chief Technical Officer, Airbus, added: “The decarbonisation of our industry requires a combination of approaches, hydrogen being one of them, and will need unprecedented cross-sector collaboration to create the new aviation infrastructure ecosystem. We are therefore pleased to have CAAS as a partner, as we embark on this exciting journey.”

The CAAS-Airbus partnership initially will consider the technical feasibility of an airport hydrogen hub and infrastructure to support operations by hydrogen-powered aircraft, including the production, storage and distribution of hydrogen, ground services for aircraft, logistical equipment and refuelling systems. In addition to provision of hydrogen, the study will consider how alternative fuels could be integrated into airport developments, either from the start or progressively as technology evolved.

In New Zealand, Z Energy has partnered with Neste to import sustainable fuels. Earlier this year, as part of a broader decarbonisation strategy, the government announced it was considering SAF blending mandates, a policy already being rolled out in Europe to boost demand for SAF to levels that supported commercial production. Z Energy is a major provider of fuel in New Zealand, supplying airlines, shipping, road transport and industry. It owns and operates pipelines, terminals and bulk storage infrastructure, supplies over 200 auto fuel retailers, and owns 15.4% of Refining NZ, the country’s only oil refinery. Together with Air New Zealand, Z Energy is a strong advocate of local SAF production.

Sami Jauhiainen, Neste’s VP Business Development, Renewable Aviation, said collaboration with Z Energy was designed to grow the availability of SAF and renewable diesel in New Zealand, and to support the country’s emission reduction targets. “While the market for SAF is today more mature in Europe and North America, where regulatory frameworks create a growing market, we expect the Asia-Pacific region to follow on that path sooner rather than later,” said Jauhiainen, who in January will transfer to Singapore to take up the new role of VP Asia Pacific for Neste Renewable Aviation. The company has also announced it will open an Asia-Pacific Research and Development Centre in Singapore, to undertake advanced analytical and raw material research with partners in Singapore and across the APAC region.

Virgin Australia CEO Jayne Hrdlicka has expressed confidence investors and global SAF providers would also focus on Australia, once appropriate policy settings were in place. She told the recent IATA SAF Symposium: “We need government support to ensure the seed capital that’s needed and the funding to get up to scale is there and available, along with the tax offsets needed to motivate that investment cycle. We’re doing our bit with the Australian government to find solutions to get the ball rolling.

“We see great things happening in the US, and we’re really buoyed by that because we think some of the first mover investments that have been made elsewhere in the world will also increase the odds of success in Australia. Then the costs of experimentation and innovation are a bit lower and we can partner with others to make headway more quickly that we’d otherwise be able to do. We have to do that with support from other stakeholders, including government.

“When that curve starts to move in the right direction, all those first movers are going to be looking at the opportunities that exist globally but haven’t yet been delivered. I would fully expect that we would have companies arriving here who want to leverage the technology and capabilities that they have elsewhere, knowing that they have got a ready market for the output and hungry to just take in the opportunity.”

Earlier this year, Virgin’s rival Qantas announced a partnership with BP to explore opportunities to establish a SAF industry in Australia.

“Even though we have been flying a lot less, we’ve actually seen the same proportion of customers choosing to offset their domestic travel during the pandemic – showing that this issue remains top of mind for people,” said Andrew Parker, Qantas Group Executive Government, Industry and Sustainability. “Airlines globally have a responsibility to cut emissions and combat climate change, particularly once travel demand starts to return. The Qantas Group has set some ambitious targets to be net carbon neutral by 2050, and while offsetting emissions is a big part of that in the next few years, longer term initiatives like building a SAF sector in Australia are key.”

Photo: Singapore’s Changi Airport (© Changi Airport Group)

MORE ASIA-PACIFIC NEWS →

EASA releases status report on Europe’s SAF production and readiness to meet blending targets

19 December 2024 0

UK government sets out new Jet Zero focus and launches consultation on CORSIA global emissions scheme

18 December 2024 0

European and US research programmes expand to better understand aviation non-CO2 climate effects

16 December 2024 0

T&E joins aviation and climate scientists in urging action to reduce warming contrails

16 December 2024 0