--- title: "AirAsia partners with Ethanol Fuel to launch Southeast Asia's first commercial sustainable aviation fuel production project | Lianhe Zaobao" type: "News" locale: "en" url: "https://longbridge.com/en/news/265374168.md" description: "Aster has signed an agreement with Aether Fuels to launch Southeast Asia's first commercial sustainable aviation fuel production project, named the \"Lighthouse Project.\" The project will take place at the Maogang Island refinery, expected to start construction in 2026 and commence operations in 2028, providing 24 full-time positions. Aster plans to invest over USD 2 billion in the Singapore market to expand its regional energy business, with support from the Singapore Economic Development Board and Temasek Holdings" datetime: "2025-11-11T15:26:01.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/265374168.md) - [en](https://longbridge.com/en/news/265374168.md) - [zh-HK](https://longbridge.com/zh-HK/news/265374168.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/265374168.md) | [繁體中文](https://longbridge.com/zh-HK/news/265374168.md) # AirAsia partners with Ethanol Fuel to launch Southeast Asia's first commercial sustainable aviation fuel production project | Lianhe Zaobao The chemical and energy company Aster, which operates the Maogang Island refinery, plans to invest over $2 billion (approximately SGD 2.6 billion) in the Singapore market and is actively seeking more transaction opportunities to significantly expand its energy business in the region. At the same time, Aster signed an agreement on Tuesday (November 11) with sustainable aviation fuel (SAF) producer Aether Fuels to jointly launch Southeast Asia's first commercial sustainable aviation fuel production project at Maogang Island. This project, named "Project Beacon," is set up at the Maogang Island refinery acquired by Aster in April this year. The project is scheduled to begin construction in the second quarter of 2026 and is expected to commence commercial operations in the first quarter of 2028, providing an estimated 24 full-time positions after production starts. The project is supported by the Singapore Economic Development Board and Temasek Holdings. Aether Fuels was established three years ago and is incubated by Xora, a deep-tech investment platform under Temasek. Aster is a joint venture company with an 80% stake held by Chandra Asri Pacific, Indonesia's largest integrated petrochemical producer. Aster's Chief Financial Officer Xu Jiaxing pointed out at a press conference that this collaboration is part of the company's Aster Ventures strategy, which promotes industrial decarbonization through technological innovation while creating synergies with existing energy, chemical, and infrastructure assets. The company plans to invest over $2 billion across its entire portfolio, including projects related to Chandra Asri's recent acquisition of local Esso gas stations. In addition to integrating assets in Singapore and Indonesia, it is also investing in renewable energy transition facilities and technological innovation. At the end of October this year, Chandra Asri announced the acquisition of 58 Esso gas stations from ExxonMobil. According to media reports, the total transaction amount is estimated to be $1 billion. Since the beginning of this year, Aster has been active in local asset acquisitions. The company has successively acquired Shell's refinery and ethylene cracking plant at Maogang Island, as well as a downstream chemical plant on Jurong Island, and has also purchased a polyethylene plant on Jurong Island. Representatives from Aster, Aether Fuels, the Singapore Economic Development Board, and Temasek Holdings launched "Project Beacon" on Tuesday at the Temasek shophouse. These representatives include Temasek Trust Chairman Ho Ching (first from the left), Aster CFO Xu Jiaxing (fourth from the left), Aster President Xu Fuliang (second from the right), Temasek Holdings and Temasek International Executive Director and CEO Dilhan Pillay (third from the right), and Singapore Economic Development Board Chairman Fang Zhangwen (fourth from the right) , and the founder and CEO of Ether Fuel, Conor Madigan (fifth from the right). (Photo by Liang Qilin) ### First use of industrial waste gas as raw material in the region to meet supply and reduce costs The aviation industry is one of the hardest sectors to decarbonize, partly due to the current lack of commercial low-carbon technologies. To achieve net-zero carbon emissions by 2050, sustainable aviation fuel is considered the most feasible solution at present, expected to deliver about 65% of the emission reductions. #### Extended Reading Asia's investment of 160 million yuan to enhance offshore infrastructure near Mao Guang Island Singapore Airlines collaborates with Temasek-incubated companies to expand the use of sustainable aviation fuel Conor Madigan, founder and CEO of Ether Fuel, stated that the company's self-developed Aurora technology primarily addresses two major challenges: limited raw material supply and high production costs of sustainable aviation fuel. Unlike most other fuel producers that use waste cooking oil as raw material, the "Lighthouse Project" uses industrial waste gas and biomethane as raw materials, which is a first in the region. The produced fuel meets the standards of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), reducing greenhouse gas emissions by more than 70% compared to traditional aviation fuel. With the support of Asia's facilities and site, the project directly uses waste gas from the Mao Guang Island refinery as raw material. Madigan pointed out that this stable and continuous source of raw material enhances the project's feasibility. The Aurora technology can increase production by 20%, reaching approximately 50 barrels of fuel per day, or about 2,000 tons per year. Another large factory capable of producing 1,000 barrels per day is also in the early stages of preparation. In terms of pricing, the current spot price of sustainable aviation fuel is about $2,700 to $2,800 per ton, while traditional aviation fuel is about $700 to $800. After the new project is put into production, fuel prices are expected to be on par with or lower than market prices Madhigan stated that the demand for sustainable aviation fuel in the Asia-Pacific region is "very strong," especially as more countries mandate the use of this fuel. Currently, the company has signed memorandums of understanding regarding fuel procurement with Singapore Airlines and JetBlue Airways. According to the sustainable aviation hub blueprint released by the Civil Aviation Authority of Singapore in 2024, all flights departing from the country must use sustainable aviation fuel starting in 2026. In addition, Madhigan revealed that, given Singapore's status as the world's largest ship refueling port, Ether fuel is also exploring the application of sustainable fuel in maritime contexts ## Related News & Research - [China Rolls Out Tougher Rules for Mobile Chargers After Safety Scares](https://longbridge.com/en/news/281627593.md) - [Omeros Turns Corner With Novo Deal, YARTEMLEA Launch](https://longbridge.com/en/news/281666535.md) - [SpaceX IPO: Will It Be a Buy or a Bust?](https://longbridge.com/en/news/281674034.md) - [Orient Securities Keeps Their Buy Rating on Geely Automobile Holdings (GELYF)](https://longbridge.com/en/news/281674321.md) - [What Is the Jevons Paradox and What Does It Mean for Micron and Sandisk Investors After Google's Revolutionary AI Breakthrough?](https://longbridge.com/en/news/281674984.md)