Syntholene receives interest from Icelandair for fuel

Executive Summary

• Syntholene Energy Corp. has signed a non-binding Expression of Interest (EOI) with Icelandair for the purchase of 25 million liters (20,000 tonnes) of synthetic sustainable aviation fuel (eSAF) annually over a 10-year period.
• The agreement is contingent upon upscaled production and competitive pricing, serving as commercial validation for Syntholene’s low-cost eSAF technology.
• The deal aligns with EU mandates requiring airlines to increase eSAF consumption from 1.3% in 2030 to 35% by 2050, supported by potential subsidies of up to €6 per liter.

Key Details

• Counterparty: Icelandair, Iceland's leading hub carrier.
• Volume: 20,000 tonnes (approximately 25 million liters) per year.
• Duration: 10 years.
• Conditions: Purchase is subject to upscaled production and competitive pricing; no definitive pricing has been established yet.
• Strategic Context: The EOI supports Icelandair’s goal to proportionately reduce carbon emissions and meet regulatory SAF mandates.
• Market Pricing Reference: The European Union Aviation Safety Agency published a market reference eSAF pricing of €7,695 ($9,065 USD) per tonne, or €6.16 ($7.26 USD) per liter in its 2024 report.
• Regulatory Environment: The EU mandates eSAF consumption of 1.3% in 2030, escalating to 10% by 2040 and 35% by 2050. Subsidies of up to €6 per liter are available for airlines meeting these mandates.
• Company Technology: Syntholene’s "power to liquid" strategy uses thermal energy for proprietary hydrogen production and fuel synthesis, targeting a 70% lower cost than competing technologies.
• Infrastructure: Syntholene has secured 20 megawatts of dedicated energy in Iceland for its demonstration facility and commercial scale-up.

Notable Quotes

• Bogi Nils Bogason, CEO of Icelandair: "The transition to sustainable aviation fuel will only happen if production is scaled up and competitive pricing ensured. Working with Syntholene aligns with our focus on proportionately reducing carbon emissions while meeting regulatory SAF mandates."
• Dan Sutton, CEO of Syntholene Energy Corp.: "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... partnerships like this are key to meeting rising demand."