Trafigura Secures Six-Year Supply of Sustainable Aviation Fuel from Uruguay

Global commodities leader Trafigura has signed a binding six-year offtake deal with Syzygy Plasmonics. This agreement covers the entire output of Syzygy’s first commercial production facility. The deal is a major step for the sustainable aviation fuel (SAF) market. It provides commercial certainty for a new, advanced fuel pathway.

NovaSAF-1 Project Details

Trafigura will purchase advanced sustainable aviation fuel from the NovaSAF-1 project. This new Syzygy commercial facility is located in Durazno, Uruguay. First deliveries of the fuel are targeted for 2028. The agreement also includes an option for Trafigura to buy additional volumes from Syzygy’s future projects.

Innovative Production Pathway

The NovaSAF-1 plant uses an innovative process for SAF from biogas. It converts biogas, sourced from a local dairy farm operator, using renewable electricity. This is achieved through a light-driven chemical reactor process. The resulting synthetic paraffinic kerosene (SPK) SAF is projected to reduce lifecycle emissions by up to 90% compared to traditional jet fuel. This electrified biogas-to-SAF method is a key development. It offers a scalable solution that diversifies the future fuel supply away from common feedstocks like used cooking oil.

Impact on Aviation Decarbonization Efforts

This Trafigura offtake agreement is critical for the wider aviation industry. The sector has committed to ambitious aviation decarbonization efforts. The International Air Transport Association (IATA) aims for net-zero carbon emissions by 2050. SAF is expected to provide about 65% of the necessary emissions reduction to meet this goal.

However, current SAF production is extremely low. It is projected to account for only about 0.6% of global jet fuel consumption in 2025. Deals like this one are vital to bridge that gap. They help scale up production capacity globally. The Uruguay SAF production facility is pre-certified to produce Renewable Fuels of Non-Biological Origin (RFNBO)-compliant SAF. This compliance is important for meeting growing regulatory mandates. For example, the EU’s ReFuelEU Aviation mandate requires a 2% SAF blend minimum starting in 2025. The long-term purchase commitment provides the financial certainty needed to build large-scale facilities. This accelerates the transition to a lower-carbon aviation future.

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