Luxaviation Group, one of the world’s leading private aviation operators, has signed a strategic Memorandum of Understanding (MoU) with Icelandic e-fuel company IdunnH2, paving the way for a long-term supply of synthetic Sustainable Aviation Fuel (eSAF). The partnership is a significant move in Luxaviation’s broader strategy to decarbonize business aviation, reinforcing its commitment to environmental responsibility.
Under the agreement, IdunnH2 will supply up to 10,000 metric tonnes of RFNBO-compliant eSAF each year for a 15-year period starting in 2029. The synthetic fuel will be produced near Keflavík International Airport using renewable electricity and captured carbon dioxide. It will be certified under the EU’s Renewable Energy Directive (RED II) and ReFuelEU standards and distributed through a book-and-claim system across the European Economic Area.
“This agreement demonstrates what’s needed to make eSAF viable—long-term demand, robust certification, and scalable distribution,” said Nanna Baldvinsdóttir, CEO of IdunnH2. “From a producer’s standpoint, this is precisely the kind of partnership that enables investment in critical eSAF infrastructure.”
The collaboration directly supports the European Commission’s Sustainable Transport Investment Plan and the growing demand for high-integrity, scalable sustainable fuel solutions. Pricing is expected to align with the lower end of current industry forecasts, with the final offtake agreement targeted for completion by September 2026.
Luxaviation CEO Patrick Hansen highlighted the symbolic and strategic value of the deal: “Our agreement with IdunnH2 not only advances our sustainability ambitions—it also honors the historical aviation relationship between Luxembourg and Iceland. We’re proud to shape the next chapter through forward-thinking, climate-focused aviation.”
IdunnH2’s Helguvík facility will make full use of Iceland’s 100% renewable energy and supportive regulatory environment. Once operational, the plant is expected to produce up to 65,000 tonnes of eSAF annually, positioning Iceland as a critical supplier to Europe’s clean aviation fuel market. As a launch customer, Luxaviation is helping to de-risk early infrastructure investment and signal strong demand for synthetic fuels in the private aviation sector.
Luxaviation continues to lead on sustainability, having rolled out initiatives such as carbon footprint calculators in its mobile app, the electrification of its ground handling operations, and expanded SAF availability across its network. This latest agreement further solidifies its role as a frontrunner in delivering practical, high-integrity climate solutions to its clients.
