Icelandair Group buys 45,000t of SAF from IðunnH2

Icelandic Sustainable Aviation Fuel (SAF) producer IðunnH2 will supply Icelandair Group with up to 45,000t of SAF from 2028. Icelandair claims this will account for around 10% of its total fuel. 

IðunnH2 will produce synthetic e-fuels from “green hydrogen” and recycled carbon dioxide at its site near Keflavík International Airport, Iceland. These synthetic fuels will be blended with conventional jet fuel and used on the airline’s fleet.

“We are pleased to have Icelandair join us in supporting the domestic production of sustainable aviation fuel,” said Audur Baldvinsdottir, CEO and co-founder, IðunnH2. “Our project in Helguvík Harbour will lead to verifiable emissions reductions, added energy security, and supports the local economy.”

The Icelandic airline aims to reduce its carbon emissions by 50% per operational ton kilometre (OTK) by 2030 and reach net zero emissions by 2050.

“We have already invested significantly in fleet renewal which is currently the most effective measure to reduce emissions,” said Bogi Nils Bogason, CEO, Icelandair. “It is however going to be the utilisation of sustainable aviation fuels that will play an important role on this journey in international aviation over the next years.”

Bogason added that the challenge is that there is not enough SAF production and therefore not enough supply. “We believe there are great opportunities for Iceland to start such production,” he said.

IðunnH2 was started in 2020 by Baldvinsdóttir and Gylfi Már Geirsson, who met at Landsvirkjun, the National Power Company of Iceland. For the IðunnH2 CEO, taking “bold steps” is imperative to reach Iceland’s goal of carbon neutrality by 2040. “IðunnH2 wants to harness Icelandic ingenuity to meet those goals and shift our long-term position as an importer of fuel,” said Baldvinsdottir. “This memorandum of understanding is an important step toward realising that vision.”