Keppel, Chandra Asri’s Aster to assess development of Jurong Island sustainable aviation fuel plant
The proposed facility will have a planned production capacity of up to 100,000 tonnes of the fuel a year
[SINGAPORE] Keppel , through its infrastructure division, has entered into an agreement with refining and chemicals player Aster to assess the development of a sustainable aviation fuel plant on Jurong Island.
The proposed plant will be one of Asia’s first commercial-scale, ethanol-to-jet sustainable aviation fuel facilities, said Keppel and Aster in a joint statement on Wednesday (Jan 28). It 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.
Keppel and Aster will conduct front-end engineering design studies to assess the technical configuration, capital expenditure, as well as potential financing and offtake structures required by the project before reaching a final investment decision on it.
The companies noted that a separate feasibility study was completed earlier to validate the technical and commercial viability of the plant’s sustainable aviation fuel production.
News of the proposed Jurong Island plant follows Aster’s move to develop another sustainable aviation fuel plant at a Pulau Bukom refining hub formerly owned by Shell.
In the last year or so, Aster – a joint venture between Indonesia’s Chandra Asri and commodities trader Glencore – has been scooping up energy-related assets of oil majors.
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In 2025, the company bought Shell’s Singapore refining and refinery assets on Pulau Bukom and Jurong Island, and reportedly paid US$1 billion for ExxonMobil’s Esso-branded chain of petrol kiosks.
With US$2 billion earmarked for Singapore investments, Aster is eyeing further deals and has several more in the pipeline, The Business Times reported previously.
Through coordination with the Economic Development Board and Enterprise Singapore, the proposed plant aligns with Singapore’s goal of becoming an Asian hub for sustainable aviation fuel, said Keppel and Aster.
It will support the Republic’s national sustainable aviation fuel target, efforts to decarbonise its aviation ecosystem and the growing needs of regional airlines, the companies said, without naming specific carriers.
They noted that the use of ethanol-to-jet fuel will enable the plant to draw on a range of bioethanol feedstocks, while retaining flexibility to adapt as regional bioethanol markets evolve.
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, she added.
Locating the proposed plant on Jurong Island will also enable the project to leverage existing industrial infrastructure and logistics, and create new opportunities for sustainable fuels in the region, said Keppel and Aster.
The developments are not expected to have a material impact on Keppel’s net tangible assets per share or earnings per share in the current financial year.
Keppel shares closed on Wednesday 0.3 per cent or S$0.03 higher at S$11.05.
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