Published: October 29, 2026
Singapore Airlines (SIA) has signed a binding agreement to purchase up to 4,800 tonnes of sustainable aviation fuel (SAF) from Aether Fuels over three years, strengthening efforts to develop alternative fuel supplies for the aviation industry.
The agreement, announced on October 28, covers fuel produced at Project Beacon, a commercial production facility being developed at Aster's refining complex on Pulau Bukom in Singapore. Deliveries are scheduled to begin in 2028.
Singapore Airlines is the first airline to purchase fuel from the project. The agreement also marks the carrier's first purchase of sustainable aviation fuel produced using technology that converts waste-carbon feedstocks into liquid aviation fuel.
Turning Waste Gases into Aviation Fuel
Project Beacon is designed to use feedstocks such as biomethane and industrial waste gases to produce sustainable aviation fuel through Aether's proprietary Aurora technology.
The process builds on the Fischer-Tropsch approach, which converts gas-based feedstocks into liquid fuels. It offers an alternative to the hydroprocessed esters and fatty acids (HEFA) pathway, which relies on lipid-based materials such as used cooking oil and animal fats.
Developing additional production methods could help diversify the supply of sustainable aviation fuel as airlines seek alternatives to conventional fossil-based jet fuel. However, the commercial impact will depend on production costs, feedstock availability, facility performance and the ability to scale up output.
The fuel produced by Project Beacon is intended to be certified under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), the international framework established to address aviation's carbon emissions.
Deliveries to Start in 2028
Under the binding agreement, Singapore Airlines will purchase up to 4,800 tonnes of fuel over a three-year period, with deliveries beginning in 2028.
The companies announced that Project Beacon is being developed at Pulau Bukom, an established refining and energy hub in Singapore. Aether has said the facility is expected to produce up to approximately 2,000 tonnes of sustainable aviation fuel annually once operational.
The planned supply is a relatively small volume compared with the total fuel consumption of a major international airline. Nevertheless, the agreement gives the project a committed airline customer before its planned production phase begins.
The deal follows a memorandum of understanding signed by Singapore Airlines and Aether in 2025. The binding purchase agreement represents a further step towards establishing a commercial market for fuel produced through this technology.
Part of Singapore Airlines' Net-Zero Ambition
Singapore Airlines has identified sustainable aviation fuel as one element of its strategy to achieve net-zero carbon emissions by 2050.
The airline has said that securing future supplies and supporting the development of new production technologies are important to expanding the use of lower-carbon fuels across the aviation sector.
SIA and its low-cost subsidiary Scoot have also set a target of using sustainable aviation fuel for 5 per cent of their total fuel requirements by 2030, subject to global developments in fuel availability and adoption.
That ambition will require additional supply, because sustainable aviation fuel remains more expensive and less widely available than conventional jet fuel. Long-term purchase agreements can provide producers with greater certainty about future demand, although they do not by themselves guarantee that production targets will be achieved.
Aether Plans a Larger Commercial Facility
Aether Fuels intends to start operations at its first large-scale commercial plant by 2031. The company says the planned facility would have production capacity at least ten times greater than Project Beacon.
Scaling up will be important if the technology is to supply a meaningful share of airline fuel demand. The transition from a smaller production facility to a larger plant will require investment, reliable feedstock supplies and consistent commercial performance.
For Singapore, the project supports ambitions to build a stronger sustainable aviation fuel ecosystem around its existing refining infrastructure and position as a major international aviation hub.
The project also illustrates how airlines, fuel producers and energy companies are working together to develop alternatives to conventional jet fuel. The long-term effect will depend on whether these technologies can deliver fuel at sufficient scale and at commercially viable costs.
What the Agreement Means for Aviation
The agreement is a concrete purchasing commitment, but it should not be interpreted as an immediate change to the fuel used across Singapore Airlines' fleet. Deliveries are scheduled to begin in 2028, and the total volume will be supplied over three years.
Its significance lies in supporting a production route that uses waste-derived gases rather than relying exclusively on conventional lipid-based feedstocks. Diversifying production methods could help the aviation industry broaden its options as it works to reduce lifecycle emissions.
The next milestones will be the completion and commissioning of Project Beacon, the start of deliveries and Aether's progress towards its planned larger-scale facility.
Official Sources
- Singapore Airlines — Official announcement with Aether Fuels
- CNA — Singapore Airlines to buy sustainable aviation fuel made from waste gases
- The Business Times — SIA to buy up to 4,800 tonnes of sustainable aviation fuel
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