Stepping up its efforts at developing Changi Airport as a sustainable aviation hub, the Civil Aviation Authority of Singapore (CAAS) has launched a tender to engage consultancy services to study and develop a structural offtake mechanism for sustainable aviation fuels (SAF).
The study will start in the first quarter of 2023 and aim to access the various models for driving structural offtakes and shortlist the preferred options for Singapore. CAAS expects it will take four months to complete the study, which includes performing horizon scanning of the various models for structural offtakes, considering sustainability goals, air hub competitiveness, and level-playing field.
It also seeks to assess the impact on traffic growth, traffic mix and financial impact, such as to the air hub, airlines and passengers, based on varying targets and pace of implementation.
One of the key features of the study is to determine whether participation for the offtake mechanism should be voluntary or mandatory, since it is likely that all stakeholders would have to co-share the cost of adopting SAF, given the substantive price difference between SAF and fossil jet fuel, said the report.
The offtake mechanism’s source of funding also needs to be determined, considering the high cost of SAF. Passengers, airlines and the government can all contribute through higher ticket prices or SAF offsets, higher operating costs and possible incentives, respectively.