Luxaviation, IdunnH2 sign 15-year eSAF agreement

Private aviation operator Luxaviation Group said it has signed a long-term sustainable aviation fuel (SAF) offtake agreement with Icelandic e-fuel innovator IdunnH2 for delivery of up to 10,000 metric tonnes of eSAF annually from 2029.

The agreement is part of a 15-year offtake framework.

IdunnH2 plans to produce eSAF at its site on the Keflavík International Airport using renewable electricity and recycled CO2.

“The agreement reflects what it takes to make eSAF work: long-term demand, credible certification, and delivery systems that can scale,” said Nanna Baldvinsdóttir, CEO of IdunnH2. “From a producer’s perspective, this is exactly the kind of agreement we need to move capital into needed eSAF infrastructure.”

The collaboration addresses the urgent need for scalable, high-integrity SAF solutions and supports broader policy goals, including the European Commission’s Sustainable Transport Investment Plan (STIP).

The pricing assumptions are within the lower end of current industry benchmarks, and the offtake agreement is expected to reach finalisation by September 2026.

“History often shapes the future,” said Patrick Hansen, CEO of Luxaviation Group. “Today’s agreement with IdunnH2 not only accelerates our SAF ambitions, it also pays tribute to the longstanding aviation bond between our two countries.”

The Helguvík eSAF facility, operated by IdunnH2, will leverage Iceland’s 100% renewable energy mix and favourable regulatory environment.

Once operational, it is expected to produce up to 65,000 tonnes of eSAF per year.