The world's aviation bodies, national governments and most airlines have signed up to pledge net zero emissions by 2050. Many airlines have set intermediate goals to push their green credentials further, like a 50% reduction by the end of this decade, but how will they get there?

Neste is making the investments now

The allure of radically new propulsion technologies, such as electric, hybrid electric and hydrogen, is like sirens on the rocks, calling aviation to look over here for the answers. In the medium term, these technologies will be available and play their part, but for now, the only available solution to cut emissions, especially for long-haul flying, is using sustainable aviation fuels (SAF).

Neste Singapore refinery - 180 degree aerial view
Photo: Neste

Airlines love to announce their first SAF blend flights and have raced each other to get that box ticked, which no doubt looks good in their ESG (environment, social and governance) reports. The issue is not if SAF will cut emissions or work, we already know that, but where is it and who is investing in the production and distribution supply chain for the alternative fuel?

One company that is making investments and nailing its colors to the SAF mast is Finland's Neste, the world's leading producer of sustainable aviation fuel, renewable diesel and renewable feedstock solutions. Last week Neste celebrated the opening of its €1.6 billion ($1.7 billion) Singapore Expansion project, which doubles the facility's production capacity to 2.6 million tons annually, of which one million tons can be SAF.

ATR 72 SAF Engine
Photo: ATR

Establishing a consistent and reliable feedstock supply is a significant issue for large-volume SAF production, which Neste has addressed as part of the Singapore expansion. It has enhanced the raw material pre-treatment capacity onsite, which increases the facility's capability to process more challenging waste and residue raw materials.

Neste's decided to build the extensions in late 2018, which in hindsight was a courageous step given all the unknowns surrounding net zero aviation and what role SAF would play in reaching the 2050 target. At last week's opening, President and CEO Matti Lehmus said the expansion marked another important milestone in Neste's renewables growth strategy execution. He described its complex construction as a "remarkable achievement," particularly as it was built during a global pandemic.

"Singapore has a world-class logistics connectivity enabling efficient transportation of the renewable raw materials as well as final products globally. Also, its world-class education supports the availability of future talents to be a part of our production and commercial operations, as well as to enhance our R&D in our recently established Innovation Centre."

Building the SAF supply chain

The neat SAF is produced at the refinery, blended with conventional jet fuel at a blending terminal in Singapore, and then delivered to airline customers, such as Singapore Airlines, at Changi airport. In order to ensure an integrated supply chain, Neste has agreed to buy a stake in the Changi Airport Fuel Hydrant Installation Company, the fuel storage and infrastructure joint venture at the airport.

SIA SAF Representatives from CAAS, SIA, Temasek, ExxonMobil and Neste at the uplifting of blended SAF onto SIA aircraft
Singapore Airlines uplifting SAF at Changi Airport with representatives from CAAS, SIA, Temasek, ExxonMobil and Neste. Photo: SIA

Executive vice president for Neste's Renewable Aviation business, Sami Jauhiainen, explained:

"Singapore is a leading aviation hub in the Asia-Pacific region. 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."

Singapore Changi Airport is not the only airport where Neste is building a reliable supply chain that delivers SAF directly into aircraft. Other airports in its current network include San Francisco International (SFO), Los Angeles (LAX), Amsterdam Schiphol (AMS), and Helsinki Airport (HEL) in Finland.

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By the end of this year, Neste's total SAF production capability from its Rotterdam (Netherlands) and Singapore facilities will be 1.5 million tons, increasing to 2.2 million tons by the first half of 2026. To build up the availability of SAF, Neste is also supplying it to other fuel marketing companies outside of its own network.

What do you think of these developments in Singapore? Let us know in the comments.