Syntholene has signed a non-binding expression of interest with Icelandair, Iceland’s leading hub carrier. The Agreement outlines Icelandair’s interest in purchasing 20,000 tonnes (~25,000,000 liters) of synthetic sustainable aviation fuel (eSAF) annually over 10 years, upon upscaled production and given competitive pricing, reinforcing the airline’s commitment to reducing its carbon footprint and advancing global aviation sustainability.

'The transition to sustainable aviation fuel will only happen if production is scaled up and competitive pricing ensured,' says Icelandair CEO Bogi Nils Bogason. 'Working with Syntholene aligns with our focus on proportionately reducing carbon emissions while meeting regulatory SAF mandates.'

'Iceland is one of our key regions as we work with leaders across their energy sector to deliver local production of synthetic fuels for their domestic and future export markets,' stated Syntholene CEO Dan Sutton. 'We are proud to be working with Icelandair to support its commitment to work towards sustainable development of aviation. With eSAF mandates accelerating in pivotal markets such as the EU Economic Zone and UK, partnerships like this are key to meeting rising demand.'

The EOI represents a commercial validation for Syntholene and its opportunity to meet the European Union’s commitment to decrease aviation emissions, showcasing the demand for its low-cost eSAF and its ability to deliver scalable, sustainable fuel solutions to meet industry needs in aviation and beyond.

The European Union Aviation Safety Agency Published market reference eSAF pricing of an average of €7,695 per tonne, or €6.16 per liter, in their 2024 Report Aviation Fuels Reference Prices for ReFuelEu Aviation (EASA).

The EU has also announced an eSAF subsidy of up to €6 per liter (Reuters) for Airlines who purchase eSAF to meet the mandated consumption amount of 1.3% eSAF in 2030, escalating to 10% by 2040 and 35% by 2050.

Pricing between Syntholene and Icelandair has not been established under this expression of interest. Any future pricing or commercial terms, if agreed, would be subject to further negotiation and the execution of a definitive fuel purchase agreement.

According to S&P Global, more than 60 airlines have set specific SAF targets for 2030 (S&P Global). This alignment across the global aviation sector reinforces the significance of the Agreement as sustainable fuel alternatives are becoming increasingly important to airlines’ decarbonisation strategies.