Keppel Ltd., through its Infrastructure Division (Keppel), and Aster have entered into an agreement to jointly assess the development of one of Asia’s first commercial‑scale Ethanol‑to‑Jet (EtJ) Sustainable Aviation Fuel (SAF) facilities on Jurong Island, Singapore. The proposed plant is expected to have a planned production capacity of up to 100,000 tonnes of SAF per year, subject to final investment decision and regulatory approvals.

Under the agreement, Keppel and Aster will carry out Front‑End Engineering Design (FEED) studies for the proposed facility, which will use best-in-class EtJ technology to convert low‑carbon ethanol into SAF. The FEED will evaluate the technical configuration, project capex and potential financing and offtake structures needed to reach final investment decision. A prior feasibility study has been completed to validate the technical and commercial viability of the facility’s SAF production.

The project is envisioned to be one of Asia’s first purpose-built EtJ SAF facilities, supporting both Singapore’s national SAF target^[1] and the growing needs of regional airlines. The EtJ pathway will enable the proposed facility to draw on a range of bioethanol feedstocks, while retaining flexibility to adapt as regional bioethanol markets evolve.

Through close coordination with agencies including the Economic Development Board (EDB) and Enterprise Singapore (EnterpriseSG), the proposed facility is aligned with Singapore’s ambition to become a leading SAF hub in Asia and supports ongoing efforts to decarbonise Singapore’s aviation ecosystem. By locating production on Jurong Island, the project can leverage existing industrial infrastructure and logistics, while creating new opportunities for sustainable fuels in the region.

Ms Cindy Lim, CEO of Keppel’s Infrastructure Division, said, “Sustainable Aviation Fuel (SAF) is one of the most practical and impactful levers available today to decarbonise air travel, and demand from airlines and passengers is growing rapidly. Keppel is pleased to partner Aster on this first‑of‑its‑kind commercial‑scale Ethanol‑to‑Jet SAF project on Jurong Island, supporting Singapore’s ambitions to be a leading SAF hub in Asia. By combining Aster’s refining and chemical expertise with Keppel’s capabilities in developing, integrating and operating complex energy and environmental assets, this project aims to deliver a bankable, scalable end‑to‑end solution to produce SAF close to where airlines need it. We look forward to working closely with regulators, offtakers, and other ecosystem partners to accelerate the adoption of SAF in the region and support the broader net‑zero transition.”

Mr Erwin Ciputra, CEO of Aster, said, “This agreement with Keppel represents a defining step in shaping the future of Sustainable Aviation Fuel (SAF) in Singapore and the wider region. Aster brings deep experience in refining and chemicals, and by combining this with Keppel’s infrastructure strengths, we are advancing a future ready, first of a kind Ethanol-to-Jet pathway in our region, designed to accelerate aviation decarbonisation. This partnership reflects our commitment to the energy transition and to supporting Singapore’s ambition to become a leading low‑carbon fuels hub, while meeting the region’s growing SAF demand.”

Mr Lim Wey-Len, Executive Vice President, EDB, said, “This partnership between Keppel and Aster reflects Singapore’s role as a hub for low-carbon technologies and sustainable products. We look forward to partnering like-minded companies to scale and advance sustainable solutions that shape the future energy and low carbon solutions.”

Ms Jeannie Lim, Assistant Managing Director, Services and Growth Enterprises, EnterpriseSG, said, “Enterprise Singapore is proud to support Keppel's partnership with Aster in developing next-generation sustainable aviation fuel capabilities in Singapore, paving the way for other Singapore enterprises to enter the growing sustainable aviation fuel ecosystem. The project demonstrates Keppel’s capabilities to lead in the development of innovative sustainable energy solutions to support global energy transition goals. We are pleased to support a homegrown champion, and we look forward to the continued partnership with Keppel as they scale their SAF expertise and pursue growth opportunities in international markets.”

The abovementioned development is not expected to have any material impact on the net tangible assets per share or earnings per share of Keppel for the current financial year.

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About Ethanol-to-Jet (EtJ)

The EtJ pathway involves converting bioethanol into SAF through a series of established chemical processes such as dehydration, oligomerisation, hydrogenation and fractionation. This approach presents a promising solution for reducing carbon emissions in the aviation sector. By using feedstocks from biomass or waste materials, the proposed facility will produce SAF that complies with CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) standards.

About Keppel Ltd. 

Keppel Ltd. (SGX:BN4) is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity. Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal and digital connectivity. Keppel creates value for investors and stakeholders through its quality investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts. 

About Aster

Aster is a leading provider of energy, chemical, and infrastructure solutions in Southeast Asia, supplying products and services to various manufacturing industries in both domestic and international markets. It is a Chandra Asri-led joint venture with Glencore. Since Chandra Asri Group’s establishment in 1992, the Group has grown from strength to strength to build its reputation as a reliable growth partner, with strategically well positioned assets in Indonesia and Singapore. The Group’s total asset base includes a refinery with a capacity of more than 300,000 barrels per day with ongoing asset rejuvenation, alongside a 1.1 million metric ton naphtha cracker on Bukom Island, 2.5 million metric tons of downstream chemical assets on Jurong Island, and a 0.9 million metric ton naphtha cracker in Cilegon. The company's business is supported by core infrastructure assets, including energy, electricity, water, jetty, and tank farm facilities. For more information, visit www.aster.com.sg.

^[1] Singapore has set a 1% SAF uplift target for 2026, with the goal to raise this to 3 to 5% by 2030, subject to global developments and the wider availability of SAF. Source: Civil Aviation Authority Singapore