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A new plant in Pulau Bukom will produce sustainable aviation fuel from 2028 onwards

PHOTO: NG SOR LUAN

Lee Nian Tjoe, 12/11/2025, The Straits Times

A new facility will be built on Pulau Bukom to produce sustainable aviation fuel (SAF) from 2028. The project, Project Beacon, is being developed by Aether Fuels and Aster. The first phase will enable production of around 50 barrels per day, or nearly 2,000 tons per year. The plant will be located on the refining site that Aster took over from Shell in 2024. The amount of the investment has not been disclosed.

Aether Fuels, supported by Xora Innovation since 2022, previously operated a pilot plant in the United States. Its technology would enable greater fuel production while requiring less investment than processes based on waste oils. It can use various inputs, such as industrial gases or biomethane, and would enable a reduction of more than 70% in emissions compared to traditional kerosene.

Construction of the plant will begin in the second half of 2026 and 24 people will work there once operations commence. A second, much larger facility is also being considered in parallel: it could produce 1,000 barrels per day, or approximately 330,000 tons per year.

SAF is considered the most effective way to decarbonize aviation, as it can be used without modifying existing aircraft or infrastructure. However, it remains much more expensive than fossil fuel. In 2024, its price ranged from SGD 2,700 to SGD 2,800 per ton, compared to SGD 700 to SGD 800 for conventional fuel.

Singapore aims to increase the share of SAF to 1% of the fuel used at Changi and Seletar by 2026. A dedicated tax will be introduced to support its adoption. Singapore Airlines and JetBlue have already signed preliminary commitments to potentially source from Aether when production begins.