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Luxaviation Commits to 15-year eSAF Supply Contract
By: Charles Alcock
Caption: Icelandic company IDunnH2 will start supplying eSAF to the business aviation group from 2029
Word Count: 293
Luxaviation has signed a long-term agreement to buy synthetic sustainable aviation fuel (eSAF) for its private aviation fleet. Announced on Tuesday, the deal commits the Europe-based business aviation group to receiving 10,000 tonnes of fuel produced by Icelandic company IdunnH2 over a 15-year period starting in 2029.
This eSAF will be produced at a site near Iceland’s Keflavik International Airport using renewable electricity and recycled carbon dioxide. According to the companies, it will meet the requirements for the ReFuelEU and EU RED II legislation, as well as the European Union’s Renewable Fuels of Non-Biological Origin requirements.
The fuel will be made available across the Luxaviation group, including for its aircraft management and charter fleet, and at its ExecuJet FBOs. Initially, the primary distribution mode will be through the company's book-and-claim system. 
"The potential for direct physical uplift at selected locations is being explored, but is not yet guaranteed," a Luxaviation spokesperson explained to AIN. "It will depend on the development of an efficient logistical chain in the coming months."
Both companies said they expect to finalize details of the supply agreement in September 2026. According to Luxaviation, pricing assumptions for the eSAF are within the lower end of current industry benchmarks.
“This agreement reflects what it takes to make eSAF work: long-term demand, credible certification, and delivery systems that can scale,” said 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.”
IdunnH2's Helguvik eSAF production facility will use Iceland's 100% renewable energy mix and is expected to produce 65,000 tonnes of jet fuel each year. Luxaviation is the company's launch customer.