Q: What’s sustainable aviation fuel and is it really the new jet fuel?

SJ: Neste began in 1948 in Finland to secure Finland’s oil product supplies. From 2005 onwards, we started our transformation journey to become a leading producer of renewable and circular solutions. We started investing in this new technology that was developed in Neste's Research and Development Centre in Finland, for converting biomass to high-quality fuels.

In Neste Finland, every year we do this campaign where people are frying their Christmas ham, and we ask them to donate that oil to us so that we can use it for producing Sustainable Aviation Fuel (SAF) and renewable diesel. We can produce SAF from used cooking oil, as well as from various other waste and residue types of oils and fats.

It is absolutely true that SAF is the new jet fuel. SAF effectively is a more sustainable alternative to conventional fossil-based jet fuel for powering aircraft. It can reduce the life cycle of greenhouse gas emissions of flying by up to 80 per cent compared to the use of conventional jet fuel. That is because we are not bringing new carbon from the ground; we are circulating existing carbon that is already part of the natural system.

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Q: Is it possible for SAF to replace conventional jet fuel completely?

SJ: Absolutely. The aviation sector around the world has set the ambitious goal for reaching net zero by 2050. While that is not an easy thing to do, given that aviation is a hard-to-abate sector requiring all possible solutions to reduce emissions, we consider that a completely feasible goal to achieve. There are enough different sustainable raw materials around the world to produce the kind of quantities of SAFs that will be needed.

However, the key challenge is about cost, as SAFs are about three to five times more expensive than conventional jet fuel.  It is not easy for airlines to switch to a costlier fuel if they have to compete in the marketplace with competitors that are not required to do the same. Hence, we do see that governments need to play a significant role in creating this new market, through government policies that either help to incentivise the use of sustainable aviation fuel or establishing requirements for blending it into fuel consumption in the airport.

Q: Why did Neste choose Singapore as its Asia Pacific hub?

SJ: The Singapore facility here in Tuas is the world's largest SAF production facility. It started in 2010 and was Neste’s first significant investment in Asia. We currently have over 400 employees across Singapore and Asia Pacific.¹

Asia Pacific is the world's largest aviation sector, and it's a completely impossible idea for the sector to achieve its ambitious climate goals unless Asia Pacific plays a significant role.

For us at Neste, Singapore has been a great location to invest and build our hub for Asia Pacific operations. Singapore’s Changi Airport provides the most convenient location to make our SAF available. That’s why we have built an integrated SAF supply chain from our refinery here in Tuas to Changi Airport, where we have established the capability to supply our SAF directly to airlines that are flying to the airport.

Last year, we set up our first Innovation Centre here in Singapore, based on the availability of strong talent that helps us to grow our activities here in the region.

What is also important to highlight is, of course, Singapore's commitment to driving sustainable development and tackling climate change. The great thing about the Sustainable Air Hub Blueprint² is that it's a comprehensive plan to drive emission reductions from the aviation sector, providing the means to drive the SAF ecosystem here in Singapore. And we at Neste are very committed to playing a key role as part of that ecosystem.

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¹Neste, Neste in Singapore and Asia Pacific, About Neste, accessed on 25 November 2024

²Civil Aviation Authority of Singapore, Launch of Singapore Sustainable Air Hub Blueprint, Press Release, 19 Feb 2024.