Sustainable Aviation Fuel: The Future of Logistics

As global trade expands, so does the carbon footprint of aviation, a sector that plays a crucial role in connecting businesses across borders. With aircraft responsible for nearly 2–3% of global CO₂ emissions, the aviation industry faces growing pressure to decarbonize¹.

For companies focused on international trade, this isn’t just a matter of corporate responsibility but a business imperative. One of the most promising solutions is Sustainable Aviation Fuel (SAF), a renewable alternative to conventional jet fuel that can significantly reduce emissions without disrupting current aviation operations.

As part of its commitment to sustainable logistics, DHL Express is at the forefront of this transformation. Through its GoGreen Plus initiative and partnership with Neste, DHL Express is paving the way for businesses in Singapore to ship sustainably from takeoff to final delivery.

What is sustainable aviation fuel?

Aviation has long been one of the hardest sectors to decarbonize. To address this, SAF represents a practical pathway toward sustainable logistics. It offers the same performance as conventional jet fuel with a fraction of the environmental impact, making it a vital step toward achieving net-zero emissions in air transport.

A greener alternative

Sustainable Aviation Fuel (SAF), also known as aviation biofuel, is a renewable energy source designed to replace or blend with traditional jet fuel. Unlike fossil-based fuels, SAF is made from sustainable feedstocks such as used cooking oil, agricultural waste, and animal fats².

The various types of non-fossil sources drastically lower the carbon intensity of air travel, making SAF composition a key factor in the aviation industry’s move toward net zero³. The feedstocks used ensure minimal competition with food production and minimal land-use change, which makes SAF a genuinely sustainable alternative.

The environmental advantage

The biggest benefit of SAF lies in its environmental performance. When compared versus conventional jet fuel, SAF can reduce lifecycle greenhouse gas emissions by up to 80% depending on the feedstock and production process⁴.

This means fewer emissions not only from combustion but across the entire fuel lifecycle, including extraction, refining, and transportation. For logistics providers like DHL Express, this is a game-changer that allows for more carbon neutral shipping services across 175 countries and territories.

A ‘drop-in’ solution

Another benefit of SAF is that it’s a ‘drop-in’ fuel, meaning it can be mixed in with regular jet fuel with little to no disadvantages and minimum impact on performance, with current regulations allowing for up to a 50% mix⁵. This compatibility makes SAF one of the fastest deployable solutions for decarbonizing aviation, a critical advantage as the world awaits advances in electric or hydrogen-powered aircraft.

Sustainable aviation fuel: A game changer for global aviation

Decarbonization is a pressing priority for aviation, and SAF has emerged as one of the most viable solutions to reduce the sector’s environmental impact without compromising operational efficiency. For major logistics hubs like Singapore, this shift is crucial in building a future where sustainable logistics and global connectivity go hand-in-hand.

Singapore: A global aviation hub

Singapore plays a vital role in global aviation and import and export networks. With its strategic location and world-class airport infrastructure, it serves as a major hub for both passenger and express delivery operations. Adopting SAF solutions can help the nation balance growth with sustainability, ensuring that trade and travel remain viable for future generations.

The upcoming SAF mandate

In a landmark move, Singapore announced plans to introduce an SAF mandate by 2026⁶. The Singapore SAF mandate will initially require 1% SAF use for all flights departing Singapore, with the target expected to rise gradually⁶.

This policy, paired with a SAF levy, will encourage airlines and logistics providers to source and use SAF, positioning Singapore as one of the first economies in Asia Pacific to legislate the transition toward sustainable aviation.

Catalyzing the ecosystem

The SAF mandate is more than just regulation, it’s a catalyst for innovation and investment. Singapore’s efforts are already attracting global players like Neste, which operates one of the world’s largest SAF production facilities locally.

By investing in SAF production and establishing strategic partnerships with logistics leaders like DHL Express, Singapore is becoming a central hub for renewable aviation energy. This ecosystem will help scale DHL Express’ availability and strengthen the country’s leadership in sustainable logistics.

Challenges in scaling sustainable aviation fuel

Despite its promise, several hurdles must be overcome before SAF becomes mainstream.

• High production costs: The price of SAF per ton is currently three to five times higher than conventional jet fuel, driven by expensive feedstocks and refining processes⁷. 
• Limited feedstock availability: The production of SAF depends heavily on renewable raw materials, which are finite. Scaling requires global cooperation to develop new, sustainable sources.
• Infrastructure and refining capacity: Expanding SAF output demands significant investment in refineries capable of processing bio-based feedstocks.
• Policy and demand: Wider use of SAF will depend on sustained policy support and industry participation. Governments, airlines, and logistics companies must align to make SAF both accessible and affordable.

While these challenges are substantial, collaborative initiatives led by sustainability pioneers like DHL Express are helping accelerate progress across the value chain.

How DHL is driving sustainable aviation fuel adoption

As part of its global sustainability roadmap, DHL Express is taking bold action to decarbonize its aviation network through the GoGreen Plus program and partnerships with leading SAF producers like Neste.

The GoGreen Plus program

DHL GoGreen Plus enables customers to actively reduce the carbon emissions associated with their international shipments. Through this service, DHL Express uses SAF in its network, directly reducing Scope 3 emissions generated during transport.

By choosing GoGreen Plus, businesses can make measurable progress toward their sustainability goals, with transparent carbon accounting and verified emission reduction data.

Partnership with Neste

In 2023, DHL Express Singapore became the first international express carrier to use locally produced SAF, in partnership with Neste, the world’s largest producer of renewable diesel and SAF.

The Neste SAF used in Singapore is made entirely of renewable waste and residue raw materials, including used cooking oil. This partnership is part of DHL’s commitment to use 30% SAF across its operations by 2030, a cornerstone of its global Sustainability Roadmap⁸.

Benefits for businesses

By using SAF through DHL GoGreen Plus, companies can:

• Lower their carbon footprint without changing logistics partners or routes.
• Enhance brand reputation by demonstrating measurable climate action.
• Comply with ESG targets and sustainability reporting requirements.
• Support the scaling of SAF production and renewable energy technologies.

Every shipment powered by SAF through DHL Express contributes to the business case for sustainability, leading to cleaner skies and a more sustainable global delivery network.

Fueling a sustainable future for trade

As the world moves toward a low-carbon economy, SAF will play a decisive role in shaping the future of global trade. It bridges today’s operations with tomorrow’s cleaner, smarter logistics, ensuring that businesses can continue to thrive responsibly.

From small enterprises to multinational corporations, come play a part in shaping a sustainable future. Switch to SAF-powered deliveries with DHL Express, and make every shipment count toward a greener planet.