Sustainable Aviation Fuel: SIA to Buy Waste-Gas Jet Fuel Made in Singapore

Sustainable aviation fuel is suddenly a hot search in Singapore, and the reason is close to home. On October 28, 2026, Singapore Airlines (SIA) signed a deal to buy jet fuel made from waste gases. Even better, that fuel will be made on Pulau Bukom, just off Singapore’s southern coast. So what is this fuel, why does it matter, and what does it mean for flyers and investors? We break it all down in plain words.

What Is Sustainable Aviation Fuel?

Sustainable aviation fuel, or SAF, is jet fuel made from renewable or waste materials instead of crude oil. It works in today’s planes and engines. Airlines blend it with normal jet fuel, so no new aircraft are needed.

The big benefit is lower lifecycle emissions. That means the total carbon released from making the fuel to burning it. For example, Aether Fuels says its process cuts greenhouse gas emissions by more than 70%. That is compared with conventional jet fuel, according to CNA.

Today, most SAF comes from waste oils like used cooking oil. Experts call this the HEFA route, which stands for hydro-processed esters and fatty acids. It works well. However, there is only so much used cooking oil in the world. That limit is why new methods matter so much.

Singapore Airlines Signs a New Sustainable Aviation Fuel Deal

Here are the key facts from the joint release by SIA and Aether Fuels. It was published on the Singapore Airlines newsroom:

• Volume: up to 4,800 tonnes of next-generation SAF.
• Length: three years.
• Start: deliveries begin in 2028.
• Seller: Aether Beacon Pte Ltd, part of Aether Fuels.
• Source: Project Beacon, a new plant at Aster’s refining complex on Pulau Bukom.
• Certification: the fuel will be certified under CORSIA, the global carbon offsetting scheme for international flights.

This is a binding agreement, not just a promise. SIA and Aether first signed a memorandum of understanding (MOU) in 2025. Now that early pledge has become a firm contract. SIA is also the first airline to buy fuel from Project Beacon, as Aviation Week confirmed.

What the leaders said

SIA’s Chief Sustainability Officer, Lee Wen Fen, linked the deal to the airline’s long-term climate goal. “Supporting the development and adoption of SAF, and securing future supplies, are integral to SIA’s ambition of achieving net zero carbon emissions by 2050,” she said.

Aether’s co-founder and CEO, Conor Madigan, called it “a strong signal of committed demand from a leading global airline.” He also noted that Project Beacon had not even been announced when the two firms signed their MOU.

How Project Beacon Turns Waste Gas Into Jet Fuel

This is where the story gets interesting. Project Beacon will not use cooking oil at all. Instead, it will use biomethane and industrial waste gases. Aster, which runs the Bukom refinery, will supply that waste carbon, along with renewable power and utilities.

Aether’s own Aurora technology does the heavy lifting. It builds on the Fischer-Tropsch process, a proven method that turns gases into liquid fuels. Aether says its version reaches “near-ideal” carbon conversion, as autoevolution reported. In simple terms, it wastes very little of the carbon it starts with.

Madigan also told The Straits Times that the method yields 20% more fuel. Plus, it needs about half the equipment investment of the waste-oil route.

Project Beacon by the numbers

The plant was first announced in November 2025. The Singapore Economic Development Board shared these details:

Item	Detail
Daily output	Up to 50 barrels of fuel
Yearly output	About 2,000 tonnes
Fuel mix	1,600 tonnes of SAF and 400 tonnes of sustainable naphtha
Emissions cut	More than 70% versus normal jet fuel
Construction	Starts in 2026
Commercial start	2028
Jobs	24 full-time roles

Now, let’s do some quick maths. SIA’s deal averages up to 1,600 tonnes a year. That equals the plant’s planned yearly SAF output. In other words, SIA could take a very large share of Beacon’s jet fuel in its early years.

Who is behind Aether and Aster?

Aether Fuels is a young climate tech company. It was incubated in 2022 by Xora, a deep tech venture firm backed by Temasek. It runs a research hub in Chicago and a growing team in Singapore.

Aster, meanwhile, is a joint venture between Indonesia’s Chandra Asri and commodities trader Glencore. It took over the Bukom refining hub from Shell in April 2025, according to The Business Times.

Why Waste-Based Jet Fuel Matters for Aviation

Most airlines face the same problem. They want greener fuel, but supply is tight. The cooking-oil route alone cannot meet future demand. That is why new pathways like Aether’s are so important.

Long-term deals help, too. A fuel maker needs committed buyers before it can raise money for bigger plants. SIA’s contract gives Aether that proof. And Aether has big plans. It aims to open a large-scale plant by 2031, with at least 10 times Beacon’s capacity. The Straits Times reported this second plant could make about 330,000 tonnes a year.

Still, we should keep this in proportion. The Aviation Hub notes that 4,800 tonnes is a small fraction of what SIA burns each year. The real value is proving the technology works at commercial scale.

SIA’s Clean Jet Fuel Goals and Track Record

This is not SIA’s first green fuel purchase. In 2024, SIA and its budget arm Scoot agreed to buy 1,000 tonnes of SAF made by Neste in Singapore. That fuel came from the waste-oil route. The new deal adds a second, very different pathway.

Looking ahead, SIA and Scoot aim to use SAF for 5% of their total fuel needs by 2030. However, CNA notes this goal depends on global supply and adoption. Their bigger target is net zero carbon emissions by 2050.

SIA also joined a national trial this year. In August 2026, Singapore’s new SAF company ran its first voluntary purchase trial. Nine organisations took part. They included SIA, Scoot, DBS Bank, OCBC, Google and Temasek, said the Civil Aviation Authority of Singapore (CAAS).

Singapore’s Sustainable Aviation Fuel Levy: What Flyers Will Pay

The SIA deal lands just weeks after a big policy change for travellers. Singapore now charges a sustainable aviation fuel levy on tickets sold from October 1, 2026. It applies to flights departing Singapore from January 1, 2027.

The levy was first meant to start earlier. However, the Ministry of Transport deferred it because of the Middle East conflict’s impact on airlines and passengers. The amounts did not change.

Here is what passengers pay, based on CAAS figures:

Destination band	Example city	Economy	Business and First
Band I: Southeast Asia	Bangkok	S$1.00	S$4.00
Band II: Northeast Asia, South Asia, Australia	Tokyo	S$2.80	S$11.20
Band III: Europe, Middle East, Africa and more	London	S$6.40	S$25.60
Band IV: Americas	New York	S$10.40	S$41.60

A few points are worth knowing:

• Transit passengers do not pay the levy. Only people starting their trip in Singapore do.
• The levy must show as a separate line on your ticket.
• The money goes into a SAF Fund, used only to buy green fuel and related credits.
• The levy on air cargo is delayed to flights from January 1, 2028.

Singapore’s national green fuel target

The levy funds a clear goal. Singapore wants SAF to make up 1% of jet fuel used from 2027. It then hopes to reach 3% to 5% by 2030, depending on global supply. The first batch of levy-funded fuel should arrive in mid-2027, CAAS says.

So, local plants like Project Beacon fit neatly into this plan. More home-grown supply could help Singapore hit its targets without relying only on imports.

What Sustainable Aviation Fuel Means for Investors

For investors, this deal is more about strategy than short-term profit. The volumes are small, and deliveries only start in 2028. So we would not expect it to move earnings soon.

Even so, it shows how Singapore Airlines (C6L.SI) is preparing for higher green fuel rules. Fuel is one of an airline’s biggest costs. Earlier this year, we saw how jet fuel prices surged on the Iran war. Locking in future supply can lower that risk over time. For more SIA stock coverage, see our C6L.SI stock update on SIA’s A380 Dubai route.

Fuel makers are worth watching, too. Neste (NEF.DE) supplied SIA’s 2024 order and makes SAF in Singapore. Aether and Aster are private, so investors cannot buy them directly. Still, demand from big airlines may shape which producers win future contracts.

Meanwhile, SIA keeps busy on the customer side. It recently ran its Time To Fly sale with over 200,000 discounted tickets. It also won the World’s Best Airline award for a sixth time. Of course, past news never guarantees future share price moves.

Sustainable Aviation Fuel in Singapore: Key Takeaways

Let’s sum it up. First, SIA will buy up to 4,800 tonnes of waste-based jet fuel over three years. Next, the fuel will be made in Singapore from 2028. Then, flyers already pay a small SAF levy on tickets for flights from 2027. Finally, Singapore aims for 1% green fuel use in 2027, rising to 3% to 5% by 2030.

In short, sustainable aviation fuel is moving from talk to real contracts. The SIA and Aether deal is small, but it is a meaningful first step. If the technology scales, Singapore could become a key hub for cleaner flying in Asia.

FAQs

What is sustainable aviation fuel made from?

Sustainable aviation fuel is made from renewable or waste materials. Most of it today comes from used cooking oil and animal fats. Newer methods, like Aether’s Project Beacon, use biomethane and industrial waste gases instead.

How much sustainable aviation fuel will Singapore Airlines buy from Aether?

Singapore Airlines will buy up to 4,800 tonnes over three years. Deliveries start in 2028. The fuel will come from Project Beacon on Pulau Bukom, Singapore.

How much is the SAF levy in Singapore?

Economy passengers pay S$1.00 to S$10.40, depending on the destination. Business and first class passengers pay S$4.00 to S$41.60. It applies to tickets sold from October 1, 2026, for flights from January 1, 2027.

Do transit passengers pay Singapore’s SAF levy?

No. The levy only applies to passengers whose trip starts in Singapore. People who only connect through Changi Airport do not pay it.

Is sustainable aviation fuel safe for planes?

Yes. It is blended with normal jet fuel under current rules. It works in today’s engines without changes. The Project Beacon fuel will also be certified under the global CORSIA scheme.

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Disclaimer: This article is for informational purposes only and is not financial advice. Always do your own research or consult a licensed financial advisor before making investment decisions.