Biofuel in Singapore: A Clean Strategy for Net-Zero 2050

As many countries strive to reach net-zero emissions by 2050, many renewable energy innovations are developed, one of which is biofuel. Singapore is no exception as it evaluates the use of sustainable biofuels across several industries.

This article explores the biofuel potential in Singapore and its role in the aviation and maritime industries. Learn more from this article.

An Overview of Biofuel Usage in Singapore

Net-zero emissions have become every country’s ultimate goal, including Singapore. The nation is evaluating increased use of sustainable bioresources and biofuels in carbon-intensive industries such as heavy industry, transportation, and energy production for the net-zero emissions 2050 strategy.

In this case, the National Climate Change Secretariat (NCCS) and the Ministry of Trade and Industry (MTI) of Singapore had examined potential domestic and international supplies of biofuels and natural renewables, including animal fats and food waste, from up to eight countries.

For context, biofuel is generated from organic materials, such as food crops and animal fats. Later, the organic material will be converted into biogas, bioethanol, biodiesel, or biomethane. In addition to food crops, biofuel could also be produced from agricultural and food waste.

Global biofuel production has continued to grow steadily in recent years, driven largely by policy mandates. Because many countries set biofuel mandates as a percentage of total fuel use, future biofuel demand will largely track overall fuel consumption trends

Biofuel production in Singapore, particularly biomass-based diesel from used cooking oil (UCO), is projected to reach 0.9 billion liters in 2035, according to the Organisation for Economic Co-operation and Development (OECD). This growing capacity could position Singapore to both support its 2050 net-zero target and export surplus biofuel to the region

Interestingly, the use of biofuel in Singapore has reached the aviation sector. Singapore Airlines used blended sustainable aviation fuel (SAF) made from animal fats and used cooking oil for all its flights from Changi Airport during the 20-month pilot project.

Then, the airline also set a target of using 5% SAF by 2030. This aligns with the Civil Aviation Authority of Singapore's direction for the SAF Levy for every origin-destination passenger, origin-destination cargo shipment, and general and business flight departing from Singapore by October 1, 2026 (applicable to services or tickets sold from April 1, 2026).

The volume of SAF required to reach the 1% SAF target for 2026, the anticipated price premium of SAF over conventional jet fuel, and other related expenses like certification, blending, and delivery are used to determine the amount of the SAF Levy.

The Singapore Green Plan 2030 also targets all new harbor craft operating in port waters to use B100 biofuels, be fully electric, or be compatible with net-zero fuels by 2030. This indicates that the biofuel potential in Singapore can improve over time with in-depth and continuous research and development.

Biofuel and Sustainable Aviation Fuel in Singapore

Industry roadmaps indicate that for governments, airlines, and airports to achieve net zero by 2050, the supply of sustainable aviation fuel must increase by almost 1,600 times, the World Economic Forum said.

Singapore itself is ideal for an SAF center among SEA nations because it has an aviation hub, a refinery hub, and a financial hub. There are several reasons why Singapore is relevant as a sustainable aviation hub:

Singapore is a global aviation hub: Changi Airport is one of the busiest terminals in the world that connects flights across Asia and international regions. The demand and supply are already there.
Access to regional feedstock: Though Singapore does not possess raw organic materials, the other Southeast Asian countries have plenty of them. The SEA countries have abundant biomass resources but still need efficient collecting methods.
Strong government push: The Civil Aviation Authority of Singapore (CAAS) has created a SAF Taskforce and implemented incentives.

Aster and Aether Fuels Develop the First Next-Gen Commercial SAF Plant in Singapore

To support the commercial distribution of sustainable aviation fuel (SAF), Aster, a subsidiary of Chandra Asri Group based in Singapore and a leading energy and chemical solution company in Southeast Asia, partnered with Aether Fuels to develop the first next-generation commercial-scale SAF facility in Southeast Asia. The plant is designed in Aster Pulau Bukom, Singapore.

Aether's commercial demonstration facility, Project Beacon, will produce up to 50 barrels of SAF per day, or 2,000 tons of fuel annually, using the company's AuroraTM technology.

It will be the first commercial facility of its sort, converting biomethane and industrial waste gas into CORSIA-certified SAF while reducing greenhouse gas emissions by more than 70% as compared to traditional jet fuel. It is anticipated that Project Beacon will start building in 2026 and start operating commercially in 2028.

Biofuel Uses in Marine Sector in Singapore

Singapore does not develop biofuel only for the aviation sector. One industry that also has a great demand for biofuel in Singapore is the marine sector. In an effort to lower carbon emissions, many shipping companies are experimenting with refueling with marine biofuel instead of traditional fuel oil.

Intriguingly, analysts and industry players expected Singapore’s marine biofuel demand to double within two years (from 2023 to 2025), showing that shipping companies began to seek decarbonization options.

This also aligns with the Singapore Green Plan 2030, which encourages sustainable maritime activities, promoting B100 biofuel use in all new harbors and other efforts. Actually, biofuel blends have been around in Singapore, particularly the B50, with 520,000 tonnes of supply in 2023.

The Maritime and Port Authority of Singapore (MPA) has been working with industry to develop standards for B100 biofuel, and this biofuel is a mandatory compatibility requirement for new harbor craft from 2030 onward. This makes biofuel a practical bridge solution in Singapore's maritime decarbonization journey: compatible with existing engines, immediately deployable, and complementary to future fuels like ammonia and methanol.

As the climate change impact worsens over time, this is the right time to consider more sustainable actions. By using biofuels, a renewable energy source, we can lower the greenhouse gas emissions released to the atmosphere but still be capable of running the industry optimally.

Aster, as #YourGrowthPartner, also strives to provide sustainable solutions for many industries, ranging from sustainable aviation fuels (SAF) to solar panels. Seeing the rapid development of renewables in Singapore, now it is time for your company to join the transition. Contact us today for prominent energy solutions.