Singapore, Jan 28, 2026, 15:42 SGT — Regular session
- Keppel shares down about 0.2% at S$11.00 in afternoon trade on the Singapore Exchange
- Keppel and Aster to assess an ethanol-to-jet sustainable aviation fuel plant on Jurong Island
- Singapore’s SAF blending mandate starts at 1% this year, rising to 3%-5% by 2030
Keppel Ltd shares edged lower on Wednesday after the company flagged a new sustainable aviation fuel project, keeping investors’ focus on what pays off now versus what might take years. The stock was down about 0.2% at S$11.00 as of 3:42 p.m. local time, within a day range of S$10.96 to S$11.04. 1
Keppel and Aster agreed to jointly assess a project to produce sustainable aviation fuel (SAF) from ethanol on Singapore’s Jurong Island, with output expected at up to 100,000 metric tonnes a year, the companies said. They will carry out front-end engineering design work before a final investment decision, and Singapore plans to mandate a 1% SAF blend in aviation fuel from this year, lifting that to 3%-5% by 2030. 2
That matters because the mandate, even at low starting levels, nudges fuel buyers toward longer-term supply contracts and pushes developers to line up feedstock and financing early. For listed names, it can shift the conversation from pure quarterly numbers to project pipelines and execution risk.
Keppel said the partners will run FEED studies — early engineering work used to pin down design and cost — to evaluate capex as well as possible financing and offtake structures. “SAF is one of the most practical levers available today to decarbonise air travel,” Cindy Lim, CEO of Keppel’s Infrastructure Division, said, while Aster CEO Erwin Ciputra called the tie-up “a defining step” for SAF in Singapore and the region. Keppel added the development is not expected to have a material impact on net tangible assets per share (a book-value measure) or earnings per share for the current financial year. 3
The muted move in the stock left it trading just shy of its 52-week high of S$11.06, according to market data. Some investors may want to see firm offtake agreements — effectively sales contracts — before attaching much value to the project.
Still, the downside case is plain. The plan is at an assessment stage, and the timetable, permitting and final investment decision are open. Costs could rise, ethanol supply could tighten, or airlines could hesitate if SAF pricing stays too wide versus conventional jet fuel.
The next near-term test for Keppel’s shares comes with its second-half and full-year 2025 results due before the market opens on Feb. 5, after related Keppel-linked REIT results in the days before. The company has scheduled a results webcast for 10 a.m. Singapore time the same day. 4
Beyond the earnings print, traders will be watching for any update on the FEED timeline, the scale of capex and whether the partners can secure offtake commitments that make the numbers work.
