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Aviation Sustainability and the Environment, CAPA 13-Feb-2020

Analysis

Headlines

Singapore Airlines and SIA Engineering to install over 20,000 solar rooftop panels

Oman Air saves 7.8m kgs of jet fuel in 2019

North Somerset Council rejects Bristol Airport expansion plans

Summary
  • Singapore Airlines and SIA Engineering are partnering with Sembcorp Solar to install over 20,000 solar rooftop panels, making it the largest combined solar power energy project for the aviation industry in Singapore.
  • The panels will help power onsite operations and surplus power generated will be channeled to Singapore Airlines and Changi Airport Group's electrical grids.
  • The project is expected to produce over 10,200 megawatt hours of power annually, offsetting over 4.3 million kilograms of carbon dioxide emissions per year.
  • Oman Air saved 7.8 million kilograms of jet fuel in 2019, equivalent to 24.6 million kilograms of emissions, through fuel-saving initiatives and the use of latest aircraft technology.
  • North Somerset Council rejected Bristol Airport's expansion plans due to environmental concerns, stating that expansion could have a detrimental effect on the area.
  • Bristol Airport had previously been given permission to expand to 10 million passengers per year, but had outlined a need for further expansion to accommodate 12 million passengers.

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Singapore Airlines and SIA Engineering to install over 20,000 solar rooftop panels

Singapore Airlines (SIA) and SIA Engineering signed (12-Feb-2020) a power purchase agreement with Sembcorp Solar to install and operate over 20,000 rooftop panels on their premises. The panels will help to power onsite operations, with surplus power generated channelled to Singapore Airlines and Changi Airport Group's electrical grids.

The panels are due to be completed in Jun-2020 and will be installed at SIA's Airline House, SIA Training Centre, TechSQ, five of SIAEC's hangars and its Engine Test Facility. It is the largest combined solar power energy project for the aviation industry in Singapore with a total capacity of 8.2 megawatt-peak.

Original report: Sembcorp To Build 8.2 Megawatt-Peak Solar Power Energy System On Singapore Airlines And SIA Engineer

Sembcorp To Build 8.2 Megawatt-Peak Solar Power Energy System On Singapore Airlines And SIA Engineering Company's Properties

Singapore Airlines (SIA) and SIA Engineering Company (SIAEC) have signed a power purchase agreement with Sembcorp Solar, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp), to install and operate rooftop solar panels on their premises.

The solar panels will help to power onsite operations at various locations, with surplus power generated channelled to Singapore and Changi Airport Group's electrical grids. This arrangement reinforces the SIA Group's commitment towards renewable energy sources and more sustainable operations.

Under the agreement, Sembcorp Solar will install, own and operate over 20,000 solar panels. The panels will be installed at SIA's Airline House, SIA Training Centre, TechSQ, five of SIAEC's hangars and its Engine Test Facility. With a total capacity of 8.2 megawatt-peak (MWp), this will be the largest combined solar-power energy project for the aviation industry in Singapore.

Upon completion in June 2020, the project is expected to produce over 10,200 megawatt hours of power annually. This is enough renewable energy to power more than 2,290 four-room HDB flats for a year. It will also help offset over 4.3 million kilogrammes of carbon dioxide emissions a year, equivalent to taking approximately 930 cars off the road or planting over 52,000 trees.

The move to harness green energy complements SIA's goal to reduce 15 per cent of its electricity consumption in its offices by FY2020/21 as well as SIAEC's goal to reduce 15 per cent of its energy consumption by FY2023/24 (compared to base year FY2013/14).

SIA Senior Vice President of Corporate Planning, Lee Wen Fen, said, "Sustainability is a key focus area for the SIA Group. We have been increasing our use of renewable energy sources, and this is one example of how we will continue to invest in the technologies and resources to meet our sustainability goals."

The adoption of solar energy is one part of the SIA Group's ongoing efforts to reduce its carbon footprint. These include its major investment in modern aircraft that have significantly reduced the average age of its fleet, and resulted in greater fuel efficiency and lower carbon emissions than previous generation planes. SIA has also embarked on its "Farm to Plane" initiative, which supports local farming communities and uses sustainable ingredients for in-flight meals, and is taking steps to reduce the amount of single-use plastics on board aircraft.

SIAEC Executive Vice President Operations, Ivan Neo, said, "SIAEC is pleased to partner SIA and Sembcorp in the adoption of clean and renewable solar energy to reduce our carbon footprint. Tapping on solar energy to power our offices and hangars is a natural extension of our environmental protection efforts, where we are already using energy-efficient air conditioning systems and energy-friendly LED lighting systems in our operations. This latest move underscores SIAEC's commitment to playing a part in combating climate change."

Jen Tan, Senior Vice President, Sembcorp Solar Singapore & SEA (Energy Division), said, "We are pleased to be SIA and SIAEC's green energy partner, supporting them in their sustainability efforts. With this deal, we are pleased to have onboard our largest renewable energy partner in the aviation industry, and we are fully ready to support their growing need for green energy."

Sembcorp is a homegrown Singapore energy player, and has been part of the Singapore power industry for over two decades. It is the only established power gentailer (generation-affiliated retailer) in Singapore to offer renewable energy. With this new contract as well as national water agency PUB's recent appointment of Sembcorp as the preferred bidder for a 60MWp floating solar project, Sembcorp will be one of the largest renewable energy players in Singapore with approximately 250MWp of capacity in operation and under development.

Sembcorp has been continually stepping up its commitment to sustainability. Today, its growing renewable energy business has over 2,600 megawatts of wind and solar power projects internationally. In 2018, the company unveiled their Climate Change Strategy, outlining ambitious targets to double its global renewables portfolio and reduce its greenhouse gas emissions intensity by approximately 22% by 2022.

This contract is not expected to have a material impact on the earnings per share and net asset per share of Sembcorp for the financial year ending December 31, 2020, and of SIA and SIAEC for the financial year ending March 31, 2020.

Oman Air saved 7.8m kgs of jet fuel in 2019

Oman Air reported (12-Feb-2020) it delivered on its commitment to environmental responsibility, saving 7.8 million kilograms of jet fuel in 2019, which is the equivalent to 24.6 million kilograms of emissions.

These reductions were achieved through implementing fuel saving initiatives and using the latest aircraft technology.

Original report: Oman Air delivers on its commitment to conservation

In 2019, Oman Air saved 7.8mln kg of jet fuel, which is equivalent to 24.6mln kg of emissions

As part of its long-standing commitment to environmental responsibility, Oman Air, the national carrier of the Sultanate of Oman, continues to make strong progress in its operational efficiency. In 2019, Oman Air saved 7.8 million kg of jet fuel, which is equivalent to 24.6 million kg of emissions. These significant reductions were achieved by making flight operations more efficient through implementing fuel-saving initiatives and using the latest aircraft technology.

Opportunities to reduce fuel consumption were identified by the airline's Air Traffic Management and Fuel Conservation teams, which bring together people from across the airline to review all elements of its operations and ensure they are conducted with maximum efficiency.

Oman Air's Fuel Conservation Team includes pilots, representatives from the Ground Operations, Engineering, Flight Operations, Information Technology, Guest Experience and Finance departments. Initiatives taken to further optimise efficiency include adopting fuel conservation best practices and route planning improvements.

"A significant part of our commitment to serve our country is ensuring we conduct our operations with regard for the environment. As an airline, we have a responsibility to ensure that we set highest possible standards for fuel efficiency", said Abdulaziz Al Raisi, Oman Air's Chief Executive Officer, who noted that the airline flies one of the most modern, fuel-efficient fleets in the world.

"This has long been one of our top priorities, both because of our regard for the environment and because increasing overall fuel efficiency also decreases our expenditures for fuel. I'm proud of our teams' work and results, and we'll keep working hard to ensure that Oman Air continues to improve and remains one of the world's most fuel-efficient airlines".

North Somerset Council rejects Bristol Airport expansion plans

North Somerset Council rejected plans by Bristol Airport to expand by 18 votes to seven, due to environmental factors (The Guardian, 11-Feb-2020). Council Leader Don Davies stated expansion could have "a detrimental effect" on the area, adding the plans may be reconsidered in the future "when the airline industry has decarbonised and the public transport links to the airport are far stronger".

Bristol Airport was given permission to expand from seven to 10 million passengers per year in 2011. It expects to reach permitted capacity by 2021, and had outlined a need for expansion to increase the number of passengers to 12 million.

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