ATOBA: Matchmaking platform for SAF sellers and buyers

opinion

by Fayaz Hussain

April 1, 2025

Joseph Heller’s Catch-22 is one of the most purchased yet least finished novels in literary history. In the book, airmen find themselves trapped in a logical loop. Aircrew deemed insane can be relieved of duty, but requesting such relief is itself proof of sanity, thus disqualifying them from being relieved.

This circular logic perfectly captures the sustainable aviation fuel (SAF) industry’s current predicament.

SAF producers need massive upfront investments to build facilities but cannot secure funding without guaranteed long-term purchase contracts. Airlines require sustainable fuel to meet decarbonisation mandates yet hesitate to commit to purchasing from unproven technologies. Producers can’t prove their technology without investment and investors won’t commit without proven offtake agreements.

French startup ATOBA Energy wants to cut through this Gordion knot of circular logic. “Producers need long-term off-take agreements and we are providing that to them,” Frédéric Pieus, chief financial officer at ATOBA Energy explains to SAF Investor.

The company’s approach is fundamentally different from traditional procurement models. Instead of a direct one-to-one relationship between a single producer and buyer, ATOBA Energy creates a portfolio of producers in order to distribute and mitigate risks. “We have a database of more than 200 projects,” Pieus notes. “This allows us to make nuanced comparisons and develop a deep understanding of what makes the best SAF project is.”

This portfolio strategy addresses multiple pain points. Airlines are typically wary of direct contracts with SAF producers due to concerns about technological capability, team expertise, pricing structures and feedstock reliability. By aggregating producers across different geographies, technologies and pricing models, ATOBA Energy creates a risk mitigation framework that makes SAF long-term supply more attractive to airlines.

The company also has a novel pricing framework. Working with renewable pricing firm General Index, the company has developed an average cost of production index that provides transparency and predictability. “For airlines, this means purchasing at an average market price,” Pieus explains. “As technologies mature and production scales up, the index will naturally reflect reduced production costs.”

Currently, the company is focusing on advanced bio-sustainable aviation fuel technologies, particularly alcohol-to-jet and gas-to-liquid processes. As for eSAF, Pieus says: “The projects we see are a little less advanced in their development and will be included in a second portfolio of producers.”

The company’s solution already has takers. French low-carbon molecules company Elyse Energy has signed an agreement with ATOBA to evaluate and structure its SAF production by analysing economic factors, volume objectives and pricing strategies.

“One of the most crucial challenges in scaling the nascent bio-SAF and e-SAF industry is the ability to obtain stable and bankable long-term offtake contracts that enable projects to reach Final Investment Decision,” said Jérémie Bertrand, energy director of SAF at Elyse Energy. “The key advantage provided by ATOBA is that they offer this guarantee while significantly reducing risks and commitments for airline clients.”

Meanwhile, Haffner Energy, currently developing biomass-to-fuel project Paris-Vatry SAF, says it is joining forces with ATOBA to accelerate the development of SAF projects and facilitate their financing.

“We are particularly excited about this partnership with ATOBA, as it will facilitate the financing of our SAF projects, starting with Paris-Vatry. One of the most crucial challenges in securing financing for SAF production facilities is the ability to obtain offtake contracts that guarantee the purchase of SAF at a stable price for periods exceeding five years,” says Phillippe Haffner, CEO and co-founder of Haffner Energy.

Gordian’s knot was notably cut by a young upstart from Macedon called Alexander, who later became Great. Hopefully ATOBA’s demand aggregation solution is the modern sword that can cut through SAF’s demand risk knot.