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Following the successful expansion of a renewable diesel refinery in Tuas, up to one million tonnes of sustainable aviation fuel can now be produced per annum at the Singapore facility.

This makes Singapore the largest producer of the renewable jet fuel in the world.

The expanded facility is owned and operated by Finnish energy company, Neste.

It was opened in a ceremony on Wednesday (May 17).

Sustainable fuel crucial to aviation sector net-zero goals

Sustainable aviation fuel is chemically similar to jet fuel, but is made from feedstock such as cooking oil and other wastes.

It also produces less greenhouse gas emissions than conventional jet fuel.

According to the International Air Transport Association, sustainable aviation fuel could contribute as much as 65 per cent of emissions reduction needed for the aviation industry to reach net-zero by 2050.

Speaking at the opening ceremony of the expanded Tuas refinery, Minister for Trade and Industry Gan Kim Yong pointed out that sustainable aviation fuel will be "the needle-mover for low-carbon travel".

Gan also highlighted that the use of such fuel is a "key aspect" of Singapore's upcoming Sustainable Air Hub Blueprint, a roadmap towards the decarbonisation of air travel.

"I am happy to note that with Neste’s expansion, Singapore’s sustainable aviation fuel production capacity will increase by 1 million tonnes per year, making Singapore the largest producer in the world."

Prior to the expansion of the Singapore facility, Neste only produced 100,000 tonnes of sustainable aviation fuel per year out of its facility in Finland.

S$2.3 billion investment

Neste's Tuas refinery was first established in 2010 and occupied a land area of 19 hectares then.

The expansion of the Tuas facility is the product of a S$2.3 billion (€1.6 billion) investment made by Neste back in 2018.

Construction works on the expansion began in 2019, and was completed after mid-April in 2023.

Operations also began in April 2023.

The expansion more than doubles the refinery's land area to 45 hectares.

Besides sustainable aviation fuel, Neste's Tuas refinery also produces renewable raw materials for the polymers and chemical industry.

The refinery will also have its own hydrogen production unit and additional capabilities to process more challenging wastes and residue raw materials, the company said in a factsheet.

Production capacity at the Singapore refinery now stands at 2.6 million tonnes per annum, of which up to 1 million tonnes is sustainable aviation fuel.

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Top image via Neste, Unsplash