US-based climate technology firm Aether Fuels aims to produce sustainable aviation fuel (SAF) using its enhanced Fischer-Tropsch (FT) technology at prices comparable to or lower than hydrotreated esters and fatty acids (HEFA) product by 2030, founder and chief executive Conor Madigan told Argus in an interview.
Madigan was speaking on the sidelines of an agreement signing ceremony on 11 November between Aether and Singapore-based energy and infrastructure provider Aster. This was to develop a next-generation SAF facility at Aster's refining and petrochemical complex on Singapore's Pulau Bukom.
Named as Project Beacon, the plant will use Aether's Aurora™ technology to convert industrial waste gas and biomethane into Corsia-certified SAF, which achieves over 70pc reduction in greenhouse gas (GHG) emissions compared to conventional jet fuel. The capital investment amount will be shared later.
Construction at the plant is expected to begin in 2026. It will then be commissioned in 2027 and begin commercial operations in 2028, employing 24 full-time staff. Project Beacon is expected to produce up to 50 b/d of fuel — or 2,000t/year — by 2028, comprising 1,600t of SAF and 400t bio-naphtha.
Aether had previously signed Memorandums of Understanding (MoUs) with Singapore Airlines in February and with US' JetBlue in September, for the airlines to potentially procure SAF produced. Other airlines have expressed interest as well, Madigan told reporters at a media briefing yesterday. Discussions with bio-naphtha buyers are still in early stages, but local demand for the product is expected.
Aether also has plans for another SAF plant which can produce at least 1,000 b/d of fuel by 2030, Madigan added. The location is still being confirmed, but more details will likely be available in second-half of 2026 after Project Beacon is operational.
With this larger plant, Aether expects to supply product at HEFA-SPK prices or below it and steadily bring the price down with subsequent plant development, Madigan said.
"We expect to eventually get prices quite close to fossil fuel, although that also depends on factors slightly out of our control, including hydrogen and renewable power prices."
The Argus fob Singapore SAF (class 2) price, netted back from ARA values, was at $2,892/t as of 11 November. This was over 3.5 times the fob Singapore jet/kerosine price at $745/t.
Capex reduction, yield increases
Madigan said that Aether's Aurora technology brings around a 50pc reduction in capital expenditure (capex) and a 20pc increase in yield, compared to existing FT SAF production technology.
Capex is reduced through a few ways — one of which is reducing the amount of equipment from three to one via Aether's tri-converter. The syngas produced — comprising carbon monoxide, CO2 and hydrogen — is then input to the FT reactor.
The reactor also runs on electricity rather than fuel combustion, which allows further cost reductions. Aether also has some "novel catalysts" whose robustness removes the need to get rid of certain feedstock contaminants like carbon monoxide, which contribute to cost savings too, Madigan told Argus.
Actual reductions in monetary terms would vary depending on the exact feedstock used, he said.
Madigan also sees an expansion in scale of FT plants from 2030 onwards, citing other plants at similar scale to Project Beacon in the US and Europe.
FT likely essential with upcoming HEFA feedstock crunch
"As the world electrifies and switches to more sustainable [energy] sources, industrial waste gas can become stranded and become waste streams that we can use," Madigan said.
This will be essential, especially as HEFA feedstock supply tightens and prices rise, there also being less opportunities for HEFA technology costs to be reduced through innovation, as capex is less of a major driver for such plants.
Regarding cover crops, Madigan noted immense challenges to change agricultural practices en-masse at existing agricultural lands, where cover crops are grown in rotation with — and generally insufficient capacity to meet the industry's full demand.
Madigan also mentioned challenges around scaling up low-cost green hydrogen supply to produce SAF through the power-to-liquid pathway, also known as e-fuels. In comparison, feedstocks like biogas, industrial waste gas, or agricultural waste — which they can use— are much more abundant.
And while biofuel plants running on the FT process generally need to be built near the producers of industrial waste gas or agricultural waste, this could support job creation for local communities associated with the additional collection and aggregation of such waste.
"This is therefore a solution that can be one of the major long-term sources of sustainable fuel," Madigan said.
