Chicago, Illinois — January 20, 2026 — Leads & Copy — Syntholene Energy Corp (TSXV: ESAF) (FSE: 3DD0) (“Syntholene”), a leader in low-cost synthetic fuel, has signed a non-binding Expression of Interest with Icelandair, Iceland’s leading hub carrier.
The Agreement outlines Icelandair’s interest in purchasing 20,000 tonnes (~25,000,000 liters) of synthetic sustainable aviation fuel (eSAF) annually over 10 years, upon upscaled production and given competitive pricing.
Icelandair CEO Bogi Nils Bogason says the transition to sustainable aviation fuel will only happen if production is scaled up and competitive pricing ensured, stating that working with Syntholene aligns with the airline’s focus on proportionately reducing carbon emissions while meeting regulatory SAF mandates.
Syntholene CEO Dan Sutton stated that Iceland is one of Syntholene’s key regions as they work with leaders across their energy sector to deliver local production of synthetic fuels for their domestic and future export markets, adding that Syntholene is proud to be working with Icelandair to support its commitment to work towards sustainable development of aviation.
The EOI represents a commercial validation for Syntholene and its opportunity to meet the European Union’s commitment to decrease aviation emissions, showcasing the demand for its low-cost eSAF and its ability to deliver scalable, sustainable fuel solutions to meet industry needs in aviation and beyond.
The European Union Aviation Safety Agency Published market reference eSAF pricing of an average of €7,695 (US$9,065) per tonne, or €6.16 (US$7.26) per liter, in their 2024 Report Aviation Fuels Reference Prices for ReFuelEu Aviation (EASA).
The EU has also announced an eSAF subsidy of up to €6 per liter (Reuters) for Airlines who purchase eSAF to meet the mandated consumption amount of 1.3% eSAF in 2030, escalating to 10% by 2040 and 35% by 2050.
Pricing between Syntholene and Icelandair has not been established under this expression of interest. Any future pricing or commercial terms, if agreed, would be subject to further negotiation and the execution of a definitive fuel purchase agreement.
According to S&P Global, more than 60 airlines have set specific SAF targets for 2030 (S&P Global). This alignment across the global aviation sector reinforces the significance of the Agreement as sustainable fuel alternatives are becoming increasingly important to airlines’ decarbonization strategies.
Synthetic aviation fuel is a clean, drop-in jet fuel made from renewable power, green hydrogen, and captured CO₂,offering up to 90% lower lifecycle emissions and helping airlines meet global decarbonization mandates without changing their aircraft engines or retrofitting.
According to a recently published report from DataM Intelligence, the eFuel sector is projected to expand at an unprecedented compound annual growth rate (CAGR) of 48.96% between 2025 and 2032, from ~US$8.5b in 2025 to ~US$215b.
A report by MarketsandMarkets, projects the global sustainable aviation fuel market to expand from an estimated USD 2.06 billion in 2025 to approximately USD 25.62 billion by 2030,representing a compound annual growth rate (CAGR) of about 65.5%.
The ReFuelEU Aviation Regulation requires airlines and fuel suppliers to adopt sustainable aviation fuel (SAF) at all major EU and EU Economic Zone airports starting in 2025. The regulation sets binding, rising SAF blending requirements of 2% in 2025, 6% in 2030, 20% in 2035 and up to 70% by 2050, creating one of the world’s largest mandated markets for clean low-carbon jet fuel (EASA).
The EU has also paired this demand-side measure with a supply-side subsidy, offering up to 6€ per liter to airlines who purchase eSAF specifically (Reuters).
Syntholene is actively commercializing a new production pathway for low-cost clean fuel synthesis. The target output is ultrapure synthetic jet fuel, manufactured at 70% lower cost than the nearest competing technology.
Syntholene’s power-to-liquid strategy harnesses thermal energy to power proprietary integrations of hydrogen production and fuel synthesis. Syntholene has secured 20MW of dedicated energy in Iceland to support the Company’s upcoming demonstration facility and commercial scale-up.
Dan Sutton, CEO can be reached at comms@syntholene.com.
Source: Syntholene
