Syzygy signs SAF offtake agreement with Trafigura
Image of Estancia Del Lago Site, courtesy EDL. This is the location where Syzygy will locate its project that has licensed Velocys technology.
Houston-based Syzygy Plasmonics announced a binding six-year sustainable aviation fuel offtake agreement between its subsidiary SP Developments Uruguay and Trafigura.
The agreement covers the entire production volume of Syzygy’s first plant, NovaSAF-1, with first deliveries targeted in 2028.
The agreement also includes an option for Trafigura to purchase additional volumes from Syzygy’s future projects, offering potential to supply a meaningful volume of compliant SAF to meet regulatory mandates.
“This agreement marks a critical step in our journey toward commercial-scale impact and disrupting the SAF market,” said Trevor Best, CEO of Syzygy Plasmonics. “With a signed offtake agreement from a global leader like Trafigura, and after having successfully completed FEED engineering in December, we’re now ready to secure financing for the construction of NovaSAF-1 and move our technology from potential into production.”
Syzygy’s first commercial-scale project, named NovaSAF-1, will be located in Durazno, Uruguay and will be the world’s first electrified biogas-to-SAF facility producing RFNBO compliant SAF.
It will leverage biogas from the Estancias Del Lago powdered milk plant and Uruguayan renewable electricity to produce synthetic paraffinic kerosene (SPK) SAF with 90% lower lifecycle emissions than fossil jet fuel while demonstrating attractive project economics.
“This offtake agreement complements our strategy to support the industry’s efforts to diversify SAF supply, particularly as regulations increasingly mandate the use of advanced fuels. Trafigura’s global low-carbon fuels network positions us to help aviation customers meet these requirements efficiently and cost effectively,” said Jason Breslaw, head of low carbon fuels business development at Trafigura.
“We’re pleased to support Syzygy’s innovative biogas-to-SAF pathway, which has the potential to deliver both regulatory compliance and competitive economics,” said Jason Breslaw, head of low carbon fuels business development at Trafigura.
Syzgy plans to replicate the project model globally and accelerate cost-competitive SAF production world-wide. Syzygy completed FEL 3 Engineering in December and the company’s next commercial milestone is fundraising to secure the capital to build the NovaSAF-1 plant.