Aster, Aether Fuels to build new SAF plant in Singapore

Singapore-based Aster is set to build a sustainable aviation fuel plant at its Pulau Bukom complex in Singapore, converting its industrial waste gas and biomethane streams into CORSIA-certified SAF with Aether Fuels' proprietary Aurora technology.

Construction of the facility, dubbed Project Beacon, is scheduled to commence in 2026, with full commercial operations targeted for 2028, the companies announced at their agreement signing ceremony on Nov. 11.

Project Beacon will have a total capacity of up to 50 barrels per day, or 2,000 metric tons per year. Of this, 1,600 mt will be SAF, with the remainder produced as sustainable naphtha, according to Aether founder and CEO Conor Madigan.

The CORSIA-certified SAF will be classified as a recycled carbon fuel, made via a transformed Fischer-Tropsch process, rather than through co-processing.

"What Aether's Aurora does is introduce two key innovations that streamline the Fischer-Tropsch process: our tri-conversion technology and our upgrading technology," Madigan said. "This reduces the number of individual pieces of equipment and lowers overall capex. Compared to existing Fischer-Tropsch technology, we see about a 50% reduction in capital expenditure and a 20% increase in production yield."

Potential offtakers for the SAF include Singapore Airlines and JetBlue, both of which have signed memoranda of understanding with Aether. Madigan noted ongoing interest from other market players, including demand for the sustainable naphtha byproduct as a feedstock for sustainable chemicals.

Aether is a climate technology startup backed by Xora Innovation, a deep-tech platform supported by Temasek.

Andre Khor, CFO and deputy CEO of Aster, said that this partnership underscores Aster's vision "to be Southeast Asia's leading energy capitals and infrastructure player".

He highlighted Aster's commitment to invest over $2 billion across its portfolio, from the deep-tech ventures to rejuvenating and integrating assets across Indonesia and Singapore.

At the signing ceremony, Png Cheong Boon, chairman of Singapore Economic Development Board, said that the partnership between Aether Fuels aligns closely with Singapore's vision for its energy and chemicals industry, which accounts for about one-fourth of manufacturing output and 3% of GDP.

"As the global energy and chemicals industry shifts towards a greener future, we too want the industry to do the same in Singapore," said Png, adding that the country aims to attract more investments in higher-value, low-carbon products.

"Since 2021, we have seen more than 30 new investments in manufacturing and R&D, by global companies such as Arkema, Cariflex, and Kuraray, in specialty chemicals and sustainable materials," said Png.

Platts, part of S&P Global Energy, assessed the Asia SAF-jet fuel spread at $1,209.97/mt Nov.10, down $9.47/mt from the previous assessment. Cost of SAF production in Southeast Asia was assessed at $1,953.04/mt on Nov. 10, down $15.71/mt day over day.