Keppel partners with Aemetis to build Asia's first commercial ethanol-to-aviation fuel facility on Jurong Island | Lianhe Zaobao

Keppel, in collaboration with chemical and energy company Aster, will develop Asia's first commercial Ethanol-to-Jet (EtJ) facility on Jurong Island, which is expected to produce up to 100,000 tons of Sustainable Aviation Fuel (SAF) annually after production begins. The two companies announced this news in a joint statement on Wednesday (January 28). According to the agreement, both parties will conduct Front-End Engineering Design (FEED) studies to assess the technical solutions, capital expenditures, and financing and procurement structures necessary to reach a final investment decision. The two parties have previously completed feasibility studies on both technical and commercial aspects. Unlike current sustainable aviation fuels primarily derived from waste cooking oil and animal and vegetable fats, ethanol-based aviation fuel uses bioethanol sourced from a wider range of materials. The project is located on Jurong Island to fully utilize existing industrial infrastructure and logistics networks. Further Reading Aster partners with Ethanol Fuel to launch Southeast Asia's first commercial sustainable aviation fuel production project International flight tickets will see a slight increase, with passengers needing to pay an additional SGD 1 to approximately SGD 42 in sustainable fuel tax The collaboration has also received support from the Singapore Economic Development Board and the Enterprise Development Board, aligning with the vision of establishing Singapore as a leading hub for sustainable aviation fuel in Asia. Authorities have set a target that starting this year, sustainable aviation fuel will account for 1% of the fuel volume for all flights departing from Singapore; this ratio is expected to increase to 3% to 5% by 2030. Keppel Infrastructure President Lin Yuling pointed out that Keppel will leverage its capabilities in developing and operating complex energy and environmental assets, combined with Aster's expertise in refining and chemicals, to create a financeable and scalable end-to-end sustainable aviation fuel production solution, producing sustainable aviation fuel close to airline demand. Keppel added that this project is not expected to have a significant impact on the company's net asset value or earnings per share for the current fiscal year