12/11/25
Enhanced FT tech could drop SAF cost below HEFA: Aether
Singapore, 12 November (Argus) — 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. By Sarah Giam Send
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