Keppel, Chandra Asri’s Aster to assess development of Jurong Island sustainable aviation fuel plant
Keppel, through its infrastructure division, has partnered with refining and chemicals firm Aster to explore the development of one of Asia’s first commercial-scale ethanol-to-jet sustainable aviation fuel facilities. Together, they will carry out front-end engineering design studies to assess the technical configuration, project capital expenditure, and potential financing and offtake arrangements before making a final investment decision on the facility. The plant will be one of Asia’s first purpose-built ethanol-to-jet sustainable aviation fuel facilities.
Located on Jurong Island, the proposed plant will convert low-carbon ethanol into sustainable aviation fuel, with a planned production capacity of up to 100,000 tonnes of the fuel a year, joint statement by Keppel and Aster.
Keppel and Aster stated that a prior feasibility study to confirm the technical and commercial viability of the facility’s sustainable aviation fuel production has already been completed.
The announcement follows a series of deals by Aster, a joint venture between Indonesia’s Chandra Asri and commodities trader Glencore, which has acquired energy-related assets from oil majors like ExxonMobil and Shell in the past year or so. Keppel and Aster noted that, in collaboration with the Economic Development Board and Enterprise Singapore, the proposed plant supports Singapore’s ambition to establish itself as a sustainable aviation fuel hub in Asia.
The plant will also support the Republic’s national sustainable aviation fuel target, efforts to decarbonise its aviation ecosystem, as well as the growing needs of regional airlines, the companies said, without naming specific carriers.
They highlighted that utilizing ethanol-to-jet fuel allows the plant to access various bioethanol feedstocks while maintaining the flexibility to adjust to changes in regional bioethanol markets.
Cindy Lim, CEO of Keppel’s infrastructure division, said: “Sustainable aviation fuel is one of the most practical and impactful levers available today to decarbonise air travel, and demand from airlines and passengers is growing rapidly. This project aims to deliver a bankable, scalable end‑to‑end solution to produce sustainable aviation fuel close to where airlines need it. It will do this by combining Aster’s refining and chemical expertise with Keppel’s capabilities in developing, integrating and operating complex energy and environmental assets”
Keppel and Aster stated that situating the proposed plant on Jurong Island enables the project to utilize existing industrial infrastructure and logistics while opening new opportunities for sustainable fuels in the region.
