Singapore Airlines (SIA) [SIA:SP] will start a one-year pilot scheme starting from 3Q22 in which it will use blended sustainable aviation fuel (SAF) produced by US oil producer ExxonMobil [XOM:US], as reported by Strait Times on February 11. The SAF comprises 1.25m liters of neat sustainable fuel supplied by Finnish biofuel producer and oil refiner Neste [NESTE:FH], and the unmixed fuel will be transported to ExxonMobil’s Singapore factories to be blended with traditional jet fuel. The trail project aims to explore the operational and commercial viability of SAF and is expected to reduce around 2,500 tons of carbon dioxide emissions within a year. Civil Aviation Authority of Singapore (CAAS) and state-investor Temasek [TMSK:SP] also support the project.
Using SAF is substantial to achieving SIA’s net-zero emission target for 2050, citing the firm’s senior vice-president, Lee Wen Fen. SAF generates up to 80% less carbon and costs two to five times more than fossil fuels. Singapore’s Transport Minister S. Iswaran revealed that government agencies are working towards producing SAF sufficient for both domestic needs and exports despite limited supplies. Furthermore, the CCAS will collaborate with aerospace giant Airbus [AIR:FP] to launch a two-year study in 2022 on the feasibility of establishing an airport hydrogen hub in Singapore’s Changi Airport, supporting future hydrogen-powered aircraft operations. According to CAAS director-general Han Kok Juan, sustainability will be a key priority in the coming years with the recovery of the aviation sector. Before the COVID-19 outbreak, commercial aviation contributed around 2% of the global carbon emission.