World's First Electrified Biogas-to-SAF Plant in Uruguay Gets Trafigura Backing

Global commodities leader Trafigura has secured a major supply of advanced sustainable aviation fuel (SAF).

The firm signed a binding six-year offtake agreement. This deal is with SP Developments Uruguay S.A. (“Syzygy”), a subsidiary of Syzygy Plasmonics. The agreement covers the entire production volume from Syzygy's first commercial facility in Uruguay. This commitment provides the commercial certainty needed for Syzygy to secure project financing and scale production.

NovaSAF-1: A New Production Model

The new facility is named the NovaSAF-1 production facility. It will be located in Durazno, Uruguay. This plant is notable as the world's first electrified biogas-to-SAF facility.

Syzygy’s innovative biogas-to-SAF technology uses a light-driven chemical reactor process. It converts biogas and captured carbon dioxide (CO₂) into synthetic paraffinic kerosene (SPK) SAF. The feedstock comes from the nearby Estancias Del Lago powdered milk plant. This process is powered by Uruguay's nearly 100% renewable electricity grid.

First deliveries of the fuel are targeted for 2028. The facility is expected to produce over 350,000 gallons of ASTM-certified SAF annually.

Decarbonization and Regulatory Compliance

The Sustainable Aviation Fuel Uruguay project is a major step for the region. The resulting fuel is expected to achieve a 90% reduction in lifecycle emissions. This is compared to traditional fossil jet fuel.

The fuel pathway has received pre-certification from ISCC. This qualifies it as a Renewable Fuel of Non-Biological Origin (RFNBO). This compliance is critical for meeting growing aviation decarbonization mandates. These mandates are expanding across Europe and the United Kingdom.

Trafigura's purchase secures a supply of compliant low-carbon fuel. This helps their aviation customers meet increasingly strict regulatory requirements. The deal also includes an option for Trafigura to buy additional volumes from Syzygy's future projects.

Industry Impact and Market Outlook

The agreement helps diversify the global SAF supply. It also supports the growth of the South America SAF market. The region is seen as having great potential for sustainable fuel production.

SAF is a key solution for the aviation industry's goal of net-zero emissions by 2050. The global SAF market is projected to grow significantly. It is driven by regulatory pressure and airline commitments.

However, the industry faces challenges in scaling production. It must also find sustainable, non-food competing feedstocks. Syzygy’s approach, which uses agricultural waste biogas, addresses this feedstock constraint. This innovative model is designed to be modular and replicable. It can unlock new clean fuel hubs globally.

• The NovaSAF-1 production facility aims to produce over 350,000 gallons of SAF annually starting in 2028.
• The fuel is expected to provide a 90% reduction in lifecycle emissions versus conventional jet fuel.
• The six-year offtake agreement covers the plant's entire output, enabling Syzygy to secure crucial project financing.
• The project leverages Uruguay's renewable power grid to create a compliant Renewable Fuels of Non-Biological Origin (RFNBO) fuel.

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