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Keppel, Aster plan sustainable aviation fuel project in Singapore

SINGAPORE, Jan 28 (Reuters) - Singapore's Keppel KPLM.SI and Aster have agreed to jointly assess a project to produce sustainable aviation fuel from ethanol on the city-state's Jurong Island industrial area, the companies said on Wednesday, to meet its future demand.

The proposed facility is expected to produce up to 100,000 metric tons of SAF per year, the companies said in a statement without giving a timeline.

A feasibility study evaluating the technical and commercial viability of the project has already been completed, they said.

The companies will carry out front-end engineering design for the project before taking a final investment decision.

Singapore will implement a mandate to use 1% SAF in aviation fuel from this year and plans to raise this target to 3%-5% by 2030 as it aims to become a regional hub for the low-carbon fuel.

 (Reporting by Ruth Chai; Editing by Christian Schmollinger)

 ((Ruth.Chai@thomsonreuters.com;))

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