Singapore And Australia Have A Thirteen Billion Dollar Opportunity In Sustainable Aviation Fuel – But Here’s why Time Is Running Out

Published on November 9, 2025

Singapore and Australia stand on the brink of a groundbreaking opportunity in sustainable aviation fuel (SAF), with a projected market worth $13 billion. However, the window for capitalizing on this chance is closing fast. As the global aviation industry shifts toward greener practices, the race to secure SAF production and supply chains is intensifying. Both nations, with their strategic locations and strong aviation sectors, could be key players in this transformation. Yet, the urgency lies in the need for swift regulatory action, investments in infrastructure, and the alignment of industry stakeholders to prevent falling behind as competitors ramp up their SAF capabilities. Time is running out to seize this high-stakes opportunity.

Australia is at a crucial crossroads that could determine whether it capitalizes on the chance to create a $13 billion-a-year industry within just six months. However, this opportunity is at risk unless the government commits to using biofuels in aviation, according to a leading jet manufacturer.

The warning comes from a major aircraft manufacturer, which has expressed concern that without immediate government action, valuable local crops suited for biofuel production could be diverted to other countries, depriving Australia of the chance to build a homegrown sustainable aviation fuel (SAF) industry. The jet manufacturer emphasized that this potential setback could undermine the development of an essential industry that could play a key role in both the nation’s economic future and the global fight against climate change.

The Australian government has already taken some steps toward supporting the SAF sector, with the announcement of a $1.1 billion investment in September, aimed at increasing the feedstock production necessary for sustainable aviation fuel. The government’s commitment to supporting the growth of this industry is evident, but it has indicated that the structure for production incentives will not be finalized until mid-2026, leaving the industry in a state of uncertainty. This delay could prevent the necessary investments and infrastructure from being put in place to develop a thriving SAF sector, leaving Australia lagging behind other countries in the race for cleaner aviation fuel.

Aviation leaders and industry stakeholders argue that the SAF industry offers one of the most effective ways for airlines to reduce their carbon emissions, a crucial factor in the aviation sector’s long-term sustainability. The global airline industry faces immense pressure to reduce its environmental impact, and SAF has emerged as a promising alternative to traditional jet fuel. However, without strong policy support, including a clear mandate for the use of SAF in aviation, airlines may not be able to make the transition, potentially hindering their ability to meet emissions reduction targets.

To address this challenge, the aircraft manufacturer is pushing for the Australian government to implement a SAF mandate. Such a mandate would require airlines to use a certain percentage of SAF in their fuel mix, ensuring the growth of the biofuel industry while also contributing to Australia’s carbon reduction goals. Without this mandate, the viability of the industry is uncertain, and the benefits of SAF may never fully materialize.

Research commissioned by the manufacturer, in collaboration with a major Australian airline, has shown that domestic SAF production could contribute up to $13 billion annually to Australia’s GDP by 2040. Additionally, the sector could create thousands of jobs in the feedstock supply chain, including farmers growing crops such as sugarcane and canola, as well as workers involved in the construction and operation of SAF refineries. The study also highlighted that the SAF sector could support the creation of up to 13,000 jobs directly tied to feedstock production, with another 5,000 jobs involved in building and running the necessary refining facilities. This job creation could be a significant boost to Australia’s rural economy, helping to provide new employment opportunities in regions that are currently underdeveloped or reliant on industries that are under pressure due to climate change.

Australia’s vast agricultural resources make it an ideal location for the production of SAF. The country is home to abundant crops such as sugarcane and canola, both of which can be used as feedstock for SAF production. In fact, Australia’s sugarcane production has the potential to become a major driver of the SAF sector, as this crop can be converted into biofuel in a process that produces fewer carbon emissions compared to traditional jet fuel. Similarly, canola, another key crop, is already being exported to European countries, where it is processed into SAF. Currently, more than 70% of Australia’s canola is sent to Europe for this purpose, where it is used to meet the growing demand for biofuels.

The potential of Australia’s SAF industry is not just a theoretical one; it is already becoming a reality in other parts of the world. In the UK, for example, a two percent SAF mandate was introduced this year, with the government planning to increase this to 10 percent by 2030. This mandate has spurred a significant increase in the production and use of SAF, as well as an influx of investments in SAF-related infrastructure. Australia could follow this example and introduce a similar mandate to ensure the long-term success of its SAF industry.

By adopting a SAF mandate and committing to biofuel use in aviation, Australia could position itself as a leader in sustainable aviation. The introduction of such policies would provide the clarity and confidence needed for businesses to invest in the necessary infrastructure and technology. It would also create a clear pathway for airlines to reduce their carbon emissions, enabling them to meet their sustainability goals and ensure a greener future for the aviation industry.

Singapore and Australia have a $13 billion opportunity in sustainable aviation fuel, but time is running out due to the need for urgent investments, regulatory action, and infrastructure development to stay ahead of global competition.

The Australian government has an important decision to make. Without a clear commitment to SAF and a mandate for its use, Australia risks missing out on the chance to create a thriving biofuel sector that could support thousands of jobs, reduce carbon emissions, and contribute billions to the economy. The time for action is now, and the government must act quickly to ensure that the country does not miss out on this critical opportunity.