Aster and Aether Fuels partner to build Southeast Asia’s first waste-gas-to-fuel aviation plant.
Singapore is taking a major leap toward cleaner skies with a new sustainable aviation fuel (SAF) plant on Pulau Bukom. Developed by Aster and Aether Fuels, “Project Beacon” will begin operations in 2028, making it the first facility in Southeast Asia to convert waste industrial gases into green jet fuel.
Project Beacon: A New Era in Aviation Energy
Aster, a refining and chemicals company, and climate-tech startup Aether Fuels will jointly develop the Project Beacon plant on Pulau Bukom. Construction is scheduled to start in 2026, with operations targeted for 2028. The plant will produce up to 2,000 tonnes of fuel annually, including 1,600 tonnes of sustainable aviation fuel and 400 tonnes of sustainable naphtha.
Located within Aster’s recently acquired refining hub—formerly operated by Shell—the project underscores Singapore’s ambition to become a global hub for clean energy innovation. Aster has earmarked US$2 billion for Singapore-based investments, including the acquisition of assets from Shell, Chevron Phillips, and ExxonMobil.
Cutting-Edge Technology and Environmental Impact
Aether Fuels’ proprietary technology will enable Project Beacon to transform industrial waste gases and biomethane into green aviation fuel. This process achieves a 70% reduction in greenhouse gas emissions compared with fossil jet fuel. Unlike traditional SAF made from used cooking oil—a feedstock in short supply—Aether’s method ensures a steady and scalable fuel source.
According to Aether founder and CEO Conor Madigan, the approach not only improves fuel yield by 20% but also halves the investment needed for production equipment. The technology offers flexibility, allowing various raw materials to be used while maintaining efficiency and sustainability.
Strong Industry Partnerships and Demand
Singapore Airlines (SIA) and US carrier JetBlue are among the first potential buyers of the new fuel. In February 2025, SIA signed a five-year memorandum of understanding with Aether Fuels to purchase the product once commercial production begins. JetBlue also entered a similar agreement in late 2024.
Speaking at the signing ceremony, Madigan revealed there was “a ton of interest throughout Asia” as governments move to mandate SAF adoption. He added that Project Beacon’s success in Singapore could serve as a blueprint for future commercial-scale plants across the region.
Policy Support and Future Expansion
Singapore’s Civil Aviation Authority plans to require airlines departing from Changi and Seletar airports to use 1% SAF by 2026, increasing to between 3–5% by 2030. To fund this transition, the government will introduce a levy ranging from S$1 to S$41.60 per ticket starting in October 2026.
Economic Development Board (EDB) chairman Png Cheong Boon noted that the project aligns with Singapore’s drive to transform its energy and chemicals industry, which contributes about 3% of GDP. Temasek CEO Dilhan Pillay emphasized that decarbonizing aviation is critical for Singapore’s net-zero ambitions, especially given the nation’s stake in Singapore Airlines.
A Vision Beyond 2028
Aether Fuels and Aster are already planning a larger commercial facility capable of producing 1,000 barrels of SAF per day—equivalent to 330,000 tonnes annually—by 2030. Aether aims to make its fuel cost-competitive with those produced from waste oils, with current SAF prices still four times higher than conventional jet fuel.
Once operational, Project Beacon will employ 24 full-time staff and expand Aether’s Singapore headcount to 30. The plant’s output will be certified under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), ensuring compliance with global sustainability standards.
Project Beacon marks a pivotal step in Singapore’s transition toward sustainable aviation and energy leadership in Asia. By turning industrial waste into cleaner jet fuel, Aster and Aether Fuels not only strengthen Singapore’s green innovation ecosystem but also set a model for neighbouring countries like Indonesia to develop climate-resilient industries. As aviation continues to grow in the region, such forward-looking initiatives could help decarbonise skies while driving new economic opportunities.
Sources: Straits Times (2025) , The Business Times (2025)
Keywords: Sustainable Aviation Fuel, Aether Fuels, Aster, Project Beacon, Pulau Bukom, Singapore Airlines
