Luxaviation Group has entered a strategic memorandum of understanding with Icelandic e-fuel innovator IdunnH2 for the long-term supply of synthetic eSAF. This collaboration marks an additional step forward in Luxaviation's commitment to decarbonising business aviation, building on the company's ambitious sustainability roadmap.

The agreement foresees the delivery of up to 10,000 metric tonnes of RFNBO-compliant eSAF annually, beginning in 2029, under a 15-year offtake framework. The fuel, to be produced near Iceland's Keflavík International Airport using renewable electricity and recycled CO2, will be certified to meet EU RED II and ReFuelEU criteria and distributed via a book-and-claim system within the European Economic Area.

“The agreement reflects what it takes to make eSAF work: long-term demand, credible certification and delivery systems that can scale,” says 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. 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,” notes 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. Just as Luxembourg once opened its skies to Icelandic innovation, we are now forging the next chapter in that story through climate-conscious aviation.”

The Helguvík eSAF facility, operated by IdunnH2, will leverage Iceland's 100 per cent renewable energy mix and favourable regulatory environment. Once operational, it is expected to produce up to 65,000 tonnes of eSAF per year, positioning Iceland as a key supplier for Europe's growing SAF demand. Luxaviation's role as a launch customer demonstrates the vital role that business aviation and long-tenor SAF agreements can play in unlocking infrastructure investment and accelerating aviation's transition to net zero.

Luxaviation Group continues to set the pace in aviation sustainability, from introducing carbon calculators in its mobile app to electrifying its ground handling fleets and expanding SAF access across its global network. The agreement with IdunnH2 reinforces that leadership and ensures that its clients will continue to benefit from credible, high-integrity climate solutions.