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Haffner Energy and IðunnH2 sign agreement to reduce costs and secure carbon supply for Iceland eSAF project

Haffner Energy, a leading biomass-to-clean fuels solutions provider, and IðunnH2, a green H2 developer, have signed an agreement aimed at integrating Haffner Energy’s unique technology in the 65,000 tpy eSAF facility under development by IðunnH2. The project is located near Keflavík International Airport in Iceland. It is slated to combine green H2 from Iceland’s renewable power grid with competitive biogenic carbon from Haffner Energy’s patented biocarbon gasification technology to produce sustainable aviation fuel (SAF) for use on the aircraft.

eSAF, which is projected to account for half of total SAF production by 2050 in Europe, is made from combining green H2 with recycled carbon, ideally from a biogenic source. Biogenic carbon typically comes in the form of biogenic CO2, a costly gas to capture, transport and store. This cost issue is typically compounded by the challenge facing many large-scale H2 and eFuel projects: they are often located in areas with good access to renewable power, but limited access to biogenic carbon, as is the case in Iceland.

Haffner Energy’s groundbreaking innovation consists in supplying solid biocarbon (also known as biochar, a byproduct of its biomass thermolysis technology) and gasifying it onsite generating a fundamental change in the economics of eSAF production.

“Accessing biogenic CO2 from a reliable partner like Haffner Energy is essential to the development of eSAF and other eFuels needed to complete Iceland’s energy transition. The agreement with Haffner Energy will help us direct Iceland’s renewable power onto Iceland’s aircraft fleet, to not only to decrease emissions, but also to reduce Iceland’s import dependence, improve air quality around Keflavík Airport and bolster energy security,” said IðunnH2 co-founder and CEO Auður Nanna Baldvinsdóttir.

“We are thrilled about this exciting project with IðunnH2. Biocarbon is far easier and cheaper to transport and store than CO2, which will make many e-SAF projects economically viable,” said Philippe Haffner, Haffner Energy co-founder and CEO.

“We are excited to embark on this eSAF project with IðunnH2 in Iceland, an ideal location for competitive H2 production. This agreement bridges the technological and geographical gap, paving the way for competitive eSAF production with innovative technology,” said Marcella Franchi, Head of SAF at Haffner Energy.

IðunnH2’s 300-MW eSAF facility in Helguvík, Iceland, will produce 65,000 t of carbon-neutral SAF, using green H2 from wind, geothermal and hydropower. SAF will be blended onsite with traditional jet fuel and used on existing fleets and infrastructure. Production is scheduled to start in 2028.

The project aligns with the SAF EU mandate. Supplying the equivalent of 15% of Iceland’s projected 2028 total jet fuel demand, this eSAF facility will allow airlines at Keflavík Airport to exceed the 2030 blending requirement. Icelandair has already committed to using up to 45,000 tpy.