- Sustainable aviation fuel is an alternative to fossil-based jet fuel made from refining used cooking oil and waste animal fats.
- Neste, a Finland-based renewable fuels company, has its largest refinery for SAF production in Singapore.
- Neste's vice president explains how this innovation will impact aviation and climate change.
- This article is part of our "Business for Good" series spotlighting business leaders and companies that are driving meaningful changes from Singapore.
By Kris LeBoutillier, a journalist and content creator who has worked across Asia for 25 years. Currently based in Singapore, he's serving as our trusted resource for the innovative projects unfolding in one of the world's most advanced and progressive business hubs.
In November 2023, Virgin Atlantic Flight100 traveling from London to New York City made history as the first-ever plane to run 100% on sustainable aviation fuel (SAF), which is made from used cooking oil and waste animal fats. Just a few days earlier, an Emirates A380 demonstration flight had also used SAF — created by Finnish company Neste — to power one of its four engines.
Coincidentally, the world's largest refinery for SAF production, operated by Neste, is located in Tuas, Singapore, where I live. I was first introduced to the company in 2022 as part of another assignment, but given the recent flights that successfully used SAF, I thought it was a good time to check in with what's going on at the refinery.
I interviewed Sami Jauhiainen, Neste's vice president of renewable aviation, to better understand how Neste turns used deep fryer oil — the kind you use to cook Buffalo wings and french fries — into fuel that can actually power a jet engine and potentially shape the future of air travel.
The need for sustainable aviation
"Aviation, and the global connectivity that it provides, brings irreplaceable benefits for businesses and the society," Jauhiainen said. "However, the aviation industry, and all of us who are flying, need to take responsibility for our emissions."
Indeed, a recent study found that commercial aviation is responsible for 2.5% of the world's CO2 emissions. Research shows that using SAF reduces lifecycle greenhouse gas emissions by up to 80%, compared to using conventional fossil jet fuel — and Neste's status as the largest producer of SAF in the world puts it in a position to lead by example.
"Neste is continuously informing stakeholders about SAF, its importance for aviation, and for combating climate change," Jauhiainen said. "This includes airlines and airports but also governments and even businesses and individual travelers."
Creating SAF starts with sourcing the globe for used cooking oil and waste animal fats and transporting them to Singapore by ship. Neste first removes the impurities through a pre-treatment process, followed by a proprietary process called NEXBTL technology to convert the fats and oils into the final product, Neste MY Sustainable Aviation Fuel. The current ASTM standards allow a maximum of 50% SAF blend with conventional jet fuel, but test flights demonstrated that running on 100% SAF is completely safe.
Increasing SAF production capabilities
SAF currently constitutes only 0.2% of all jet fuel consumption, but with governments increasingly putting supporting policies in place and voluntary demand ramping up, Jauhiainen expects global SAF demand to be around 15 million tons by 2030. "It is clear that SAF production needs to scale up significantly, and Neste is leading that charge," he said.
In 2023, Neste opened an APAC Innovation Center in Singapore to strengthen its global capabilities in innovation, research, and development.
These types of investments are allowing Neste's existing refinery in Singapore to expand and increase production capacity. Currently, Neste is considered to have the world's largest production capability for SAF, with an annual output of 1 million tons.
Further expansion efforts happening at Neste's renewable refinery in The Netherlands are anticipated to boost capacity to a whopping 2.2 million tons by 2026.
Why Singapore is the right place for SAF
The fact that Singapore, a city-state with no natural resources, was chosen to host Neste's largest SAF refinery is a testament to its connectivity: Not only is sourcing materials easily accessible by sea, but Singapore is also a major aviation hub in the Asia-Pacific region — a rather important status when you consider the future demand potential in the Changi airport for SAF.
"With Singapore Airlines as the major international domestic carrier and many visiting carriers flying to Changi, Singapore is an ideal location to accelerate the availability and use of SAF," Jauhiainen said.
These factors contribute to the country's status as a leader in accelerating the transition to sustainable aviation, with several developments already taking place:
- In May 2023, Neste announced an integrated supply chain that links the refinery directly to Singapore's Changi Airport.
- Singapore Airlines and its subsidiary Scoot recently conducted a 20-month trial on SAF provided by Neste. The results indicated the company's readiness to incorporate renewable fuel into its fuel mix.
- Neste has supplied renewable fuel to over 70 customers globally, including major carriers like United Airlines, Air France-KLM, and All Nippon Airways.
- The Association of Asia-Pacific Airlines (AAPA), comprising 14 member airlines, including Singapore Airlines, pledged to use up to 5% SAF by 2030.
- In 2024, Singapore plans to launch the Singapore Sustainable Hub Blueprint, aiming to bolster the market for SAF.
The move toward SAF undoubtedly will have a positive effect on the future of air travel. And for Jauhaianen, the motivations go beyond just business reasons.
"As a father of three young children, I strongly believe that we have to act now to create a healthier planet for the future generations," he said. "The impact of climate change is undeniable, and we do not have time for inaction."
He adds that working at Neste has given him the chance to find a "clear purpose" in his work.
"I have enjoyed the Neste culture that centers around collaboration," he said. "So, what I have loved is doing meaningful work together with colleagues who are committed to the same purpose."
Learn more about why so many are partnering with Singapore to drive meaningful change.
This post was created by Insider Studios with the Singapore Economic Development Board.