Singapore sets up SAFCo for SAF procurement

The Civil Aviation Authority of Singapore (CAAS) has set up a not-for-profit Sustainable Aviation Fuel Company (SAFCo) to centralise all matters related to SAF including procurement and mandates.

The SAFCo will use the funds collected under the SAF levy to procure the fuel.

CAAS Director-General Han Kok Juan will chair the SAFCo’s Board whereas seasoned leader in energy and aviation industries Tan Seow Hui has been appointed as its founding Chief Executive Officer.

Earlier last month, Singapore announced the passage of the CAAS (Amendment) Bill this week to fund the sustainable aviation fuel (SAF) mandate kicking off from 2026 onwards.

The bill will allow the authority to collect a SAF levy to setup a dedicated SAF fund.

Funds raised through the levy will be used to buy SAF to support the country’s 1% SAF mandate from next year.

The fund will also include the penalties and interest in addition to the SAF levies.

The bill was introduced the country’s Ministry of Transport in September earlier this year. The first reading of the bill was done on 22nd of September. The bill was in line with the  Singapore Sustainable Air Hub Blueprint in February 2024 which laid out plans to mandate 1% SAF usage on flights departing from Singapore from 2026.

The Fund will be used to procure SAF and SAF EAs as well as to cover related administrative costs. It will not form part of CAAS’ revenue.