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30 Oct 2025
Home Newsroom CAAS Sets Up Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo) to Centrally Procure SAF

CAAS Sets Up Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo) to Centrally Procure SAF

Appoints seasoned industry leader as founding Chief Executive Officer

1         The Civil Aviation Authority of Singapore (CAAS) has set up the Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo) to centrally procure sustainable aviation fuel (SAF) for the Singapore air hub and support the implementation of Singapore’s national SAF policy. SAFCo is set up as a non-profit Company Limited by Guarantee wholly owned by CAAS. Mr Han Kok Juan, Director-General of CAAS, will chair SAFCo’s Board. Ms Tan Seow Hui, a seasoned leader in the energy and aviation industries, has been appointed as its founding Chief Executive Officer (see Annex A for Ms Tan’s curriculum vitae).

2         The setting up of SAFCo follows the passing of the Civil Aviation Authority of Singapore (Amendment) Bill in Parliament on 14 October 2025, which allows for the implementation of SAF policies for air transport in Singapore and empowers CAAS to collect a SAF Levy, to set up a SAF Fund and to procure, manage and allocate SAF and SAF environmental attributes (EAs)1 or to establish and appoint a central procurement entity to carry out these functions. More details on the SAF Levy amounts will be shared later.

3          Through SAFCo, CAAS seeks to build a transparent and integrated SAF demand market that brings together airlines, corporate buyers of SAF, fuel producers, carbon market platforms2 and stakeholders across the aviation fuel chain in Singapore to aggregate demand, stimulate investment and accelerate the use of SAF:

          a) SAFCo will centrally procure SAF using the SAF Fund to achieve the 1% SAF target in 2026, for flights departing Singapore. The amount of SAF procured by SAFCo will increase accordingly when the SAF target is raised to 3–5% by 2030, subject to global developments and the wider availability and adoption of SAF. SAF and SAF EAs will be sourced through a transparent competitive tender process from SAF suppliers that meet international sustainability standards like CORSIA. With predictable cashflows from the SAF Levy, SAFCo will be able to go into longer-term, competitive price agreements to secure a more stable and affordable SAF supply.

          b) Beyond the regulated demand from the SAF Levy, SAFCo will also aggregate voluntary SAF demand from organisations seeking to purchase SAF to reduce their air travel or supply chain carbon footprint credibly and cost-effectively. The demand from the SAF Levy forms a scalable baseload, enabling SAFCo to negotiate attractive pricing for SAF and SAF EAs, and to anchor long-term supply agreements. Businesses that participate in SAFCo’s voluntary SAF purchases can leverage this baseload to unlock economies of scale. They can also gain access to competitively priced and verified SAF and SAF EAs through SAFCo and avoid the need to set up their own procurement systems.

To read the full press release, please refer to CAAS website.