Keppel, Chandra Asri’s Aster to assess development of Jurong Island sustainable aviation fuel plant
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Aster has been scooping up energy-related assets, including Shell’s Singapore refining and refinery assets on Jurong Island.
PHOTO: ST FILE
Therese Soh
SINGAPORE - Keppel, through its infrastructure division, has entered an agreement with refining and chemicals player Aster to assess the development of one of Asia’s first commercial-scale 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, according to a Jan 28 joint statement by Keppel and Aster.
Keppel and Aster will conduct front-end engineering design studies to evaluate the technical configuration, project capital expenditure, as well as the potential financing and offtake structures required, before they reach a final investment decision regarding the proposed facility.
An earlier feasibility study to validate the technical and commercial viability of the facility’s sustainable aviation fuel production has already been completed, Keppel and Aster noted.
The news comes amid a deal spree by Aster, a joint venture between Indonesia’s Chandra Asri and commodities trader Glencore, which has scooped up energy-related assets of oil majors such as ExxonMobil and Shell over the past year or so.
Through coordination with the Economic Development Board and Enterprise Singapore, the proposed plant aligns with Singapore’s goal of becoming a sustainable aviation fuel hub in Asia, said Keppel and Aster.
The plant will be one of Asia’s first purpose-built ethanol-to-jet sustainable aviation fuel facilities.
It 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 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.
Ms Cindy Lim, chief executive 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 also allows the project to leverage existing industrial infrastructure and logistics, while creating new opportunities for sustainable fuels in the region, said Keppel and Aster.
The developments are not expected to have any material impact on the net tangible assets per share or earnings per share of Keppel for the current financial year.
In April 2025, Aster took over Shell’s Singapore refining and refinery assets on Pulau Bukom and Jurong Island
In October 2025, it inked a reportedly US$1 billion (S$1.26 billion) deal to buy ExxonMobil’s Esso-branded petrol kiosks chain.
The energy and chemicals player has set aside US$2 billion for Singapore investments and is on the hunt for further deals, with several more in the pipeline, The Business Times reported previously.
Keppel shares closed three cents, or 0.3 per cent, higher at $11.05 on Jan 28. THE BUSINESS TIMES
