// For airlines
Every tonne of certified eSAF uplifted at KEF saves roughly 3.15 tonnes of CO₂ in ETS surrender costs today, and counts toward CORSIA from 2027. Once Iceland activates the support already written into European law, it carries 100% coverage of the price difference against fossil kerosene. We are building the supply 5 km from the runway: 70,000 tonnes per year, first fuel in 2029, contracting now.
// Compliance value
Three regulatory frameworks converge on every departure from Keflavík, and each one prices eSAF against its fossil alternative. One of them, CORSIA, is the global scheme run by ICAO, the UN’s civil aviation body, that requires airlines to offset the growth in their international flight emissions; using eSAF lowers the offsets they have to buy.
EU ETS (in force). Free aviation allowances ended in January 2026; airlines purchase and surrender allowances for all CO₂ on intra-EEA flights. eSAF is rated at zero tank-to-wake emissions, so every tonne uplifted saves approximately 3.15 tonnes of CO₂ in surrendered allowances, worth approximately EUR 200-315 per tonne at current carbon prices. This saving exists today1.
ICAO CORSIA (Phase 2 from 2027). Certified eSAF reduces the offset obligation directly, replacing carbon credit purchases for international flights to and from CORSIA member states2.
ReFuelEU Aviation. Blending mandates already apply at EU airports. Penalties for synthetic-mandate shortfalls are set by Member States under Article 12: at least twice the price difference between synthetic fuel and conventional kerosene, approximately EUR 14,000 per tonne at EASA’s published 2025 reference prices. Airlines operating between KEF and EU destinations meet the mandate at the EU end today34.
On top of the value stack, Article 3c(6) of the ETS Directive reserves a pool of up to 20 million EU ETS allowances (2024-2030) to bridge the remaining price difference between fossil kerosene and eligible SAF. Coverage runs in tiers: 50% at most airports, 70% for advanced biofuels, 95% for eSAF, and 100% at airports located in Iceland, the highest tier in the structure, inserted by EEA Joint Committee Decision 334/20235. The allowances are claimed by airlines, not producers, and only for fuel physically present at the airport of uplift. Iceland has not yet activated the mechanism in national law; when it does, the airlines already lifting eSAF at KEF are the ones positioned to apply from the first allocation round6. Norwegian carriers received the EFTA pillar’s first allocation in February 2026, for fuel used in 20247.
Volume is limited. Take-or-pay contracting targets 60-80% of capacity before final investment decision, and agreements signed in 2026-2027 stand first in the queue. We will run airline-specific compliance and cost models against your operational data on request.
Sources 1 Directive 2003/87/EC, Article 3c(6) · 2 ICAO CORSIA · 3 Regulation (EU) 2023/2405 (ReFuelEU Aviation), Article 12 · 4 EASA, Aviation Fuels Reference Prices for ReFuelEU Aviation · 5 EEA Joint Committee Decision No 334/2023 · 6 Lög nr. 106/2025 · 7 EFTA Surveillance Authority, College Decision No 02626COL
// Product
Our eSAF will be produced via the methanol-to-jet (MtJ) pathway and is designed to meet ASTM D7566 specifications. The fuel will be delivered into the KEF hydrant system and uplifted exactly like the fuel that is there today.
// Certification
Iceland’s renewable grid (approximately 99% hydro and geothermal) places the Iceland eSAF Project under the Article 4(1) exemption in Delegated Regulation 2023/11848. The additionality, temporal correlation, and geographic correlation tests that continental eSAF producers must clear do not apply in Iceland. Only the 70% lifecycle GHG reduction criterion applies, and Iceland’s grid carbon intensity makes that straightforward9.
RFNBO exemption
Delegated Regulation 2023/1184
Fuel specification: physical use in aircraft (MtJ pathway).
Status MtJ pathway annex approval in process at ASTM; targeting 2026-2027
EU sustainability: ReFuelEU compliance.
Status In process, targeting 2028
CORSIA eligible fuel status.
Status In process, bundled with ISCC EU
RFNBO hydrogen origin.
Status In process, targeting 2026-2027
UK supply (Heathrow, Gatwick, KEF-UK routes).
Status Targeted post-D7566
Renewable electricity documentation.
Status Targeted 2026
// Path to offtake
Indicative interest, volume, term, and pricing framework.
Binding heads of terms. Volume, indexed pricing, take-or-pay structure.
Long-form offtake agreement (typical term 7-15 years).
Physical uplift at KEF or book-and-claim transfer to a designated airport.
Pricing is discussed at MoU stage. We will run airline-specific compliance and cost models against your operational data on request.
// Procurement FAQ
// Specs
It blends at up to 50% with conventional Jet A-1 in the existing fuel pool10. Once blended within specification limits, the product is recertified as conventional Jet A-1 under DEF STAN 91-091 and ASTM D1655 (the AFQRJOS Joint Checklist used for European supply)11. No engine or airframe modifications. No infrastructure changes at the airport.
| Parameter | Value |
|---|---|
| Fuel type | eSAF via methanol-to-jet (MtJ) |
| Standards | ASTM D7566 (MtJ annex, in process); recertified as Jet A-1 under DEF STAN 91-091 and ASTM D1655 once blended |
| Blend ratio | Up to 50% with conventional Jet A-1 |
| Density at 15 C | 730-770 kg/m3 (typical SPK range; final spec per batch CoA) |
| Freezing point | -47 C or below |
| Flash point | 38 C or above |
| Aromatics | Trace (near-zero from PtL pathway) |
| Sulphur | Less than 15 ppm (effectively zero from PtL pathway) |
| Net heat of combustion | 42.8 MJ/kg or above |
| Smoke point | Improved vs fossil Jet A-1 (higher smoke point typical for SPK) |
| Lifecycle CO2 | Approximately 90% lifecycle reduction vs fossil jet fuel, confirmed at FEED, verified annually |
Full Certificate of Analysis available per batch on delivery.
// Next step
The Iceland eSAF Project is in development. We are contracting capacity ahead of FID: take-or-pay agreements are targeted for 60-80% of production capacity before final investment decision, and offtake agreements signed in 2026-2027 are at the front of the queue for first fuel in 2029.
