Singapore, Jan 29, 2026, 15:14 SGT — Regular session
- In afternoon trading, Keppel shares slipped 0.27% to S$11.02
- Company plans to study ethanol-to-jet SAF facility alongside Aster on Jurong Island
- Investors are focused on project timelines, capex cues, and the February 5 earnings report
Shares of Keppel Ltd slipped in Thursday afternoon trading following the announcement of a partnership with refining and chemicals firm Aster on a sustainable aviation fuel (SAF) initiative—a greener alternative to traditional jet fuel. By 2:56 p.m. Singapore time, the stock was down 0.27% at S$11.02, after fluctuating between S$10.98 and S$11.12. 1
The announcement arrives just as Singapore begins backing SAF use with policy, nudging fuel suppliers and airlines toward fresh supply agreements and new production methods. The city-state intends to require 1% SAF in aviation fuel starting in 2026, with a goal to raise that to between 3% and 5% by 2030. 2
Keppel investors face a clear question: will the tie-up remain a study or move into actual construction? The companies haven’t revealed the investment amount or offered a timeline for a final call.
Keppel and Aster announced they will handle front-end engineering design work, or FEED, the early-phase engineering aimed at finalizing specs and refining cost estimates. They noted a feasibility study had already been finished.
The proposed facility on Jurong Island aims to convert low-carbon ethanol into sustainable aviation fuel (SAF) via an “ethanol-to-jet” process, targeting an annual output of up to 100,000 tonnes, the companies said. This plan hinges on regulatory approvals and a final investment decision. Cindy Lim, chief executive of Keppel’s infrastructure division, described SAF as “one of the most practical and impactful levers available today to decarbonise air travel.” Erwin Ciputra, CEO of Aster, called the agreement “a defining step” for SAF in Singapore and beyond. 3
Keppel stated the development won’t materially affect net tangible assets or earnings per share this financial year. The companies added that the effort is coordinated with Singapore agencies like the Economic Development Board and Enterprise Singapore.
Keppel announced late Tuesday that it has placed its wholly-owned unit, Flemmington Investments Pte. Ltd., into members’ voluntary liquidation—a method used to dissolve a solvent company. The company said this step won’t have a significant impact on its net tangible assets or earnings per share for the year ending Dec. 31, 2026. 4
The SAF project is still in its early stages. Rising feedstock costs or stricter policy and certification requirements could delay the final decision or force a rethink of the plan.
Traders are keen to see any disclosed capex range as FEED work advances, alongside signs of offtake talks—buyers ready to commit volumes—which would reduce risk more effectively than another headline.
Keppel will release its second-half and full-year 2025 results ahead of the market open on Feb. 5. That’s the next key date investors have marked. 5
