Haffner Energy, IðunnH2 sign agreement to reduce costs, secure carbon supply for Iceland’s largest eSAF project

Photo: Haffner Energy

Haffner Energy announced Sept. 2 that it has signed an agreement with green-hydrogen developer IðunnH2 aimed at integrating Haffner Energy’s unique technology in a 65,000-ton-per-year eSAF facility under development by IðunnH2.

The project is located near Keflavík International Airport in Iceland.

It is slated to combine green hydrogen from Iceland’s renewable power grid with competitive biogenic carbon from Haffner Energy’s patented biocarbon gasification technology to produce sustainable aviation fuel (SAF) for use in today’s aircraft.

Projected to account for half of total SAF production by 2050 in Europe, eSAF is made from combining green hydrogen with recycled carbon, ideally from a biogenic source.

Biogenic carbon typically comes in the form of biogenic CO2, a costly gas to capture, transport and store.

This cost issue is typically compounded by the challenge facing many large-scale hydrogen and eFuel projects: They are often located in areas with good access to renewable power, but limited access to biogenic carbon, as is the case in Iceland.

According to Haffner Energy, its innovation involves supplying solid biocarbon—also known as biochar, a byproduct of Haffner Energy’s biomass thermolysis technology—and gasifying it onsite, generating what the company said is “a fundamental change” in the economics of eSAF production.

“Accessing biogenic CO2 from a reliable partner like Haffner Energy is essential to the development of eSAF and other eFuels needed to complete Iceland’s energy transition,” said Auður Nanna Baldvinsdóttir, co-founder and CEO of IðunnH2. “The agreement with Haffner Energy will help us direct Iceland’s renewable power onto Iceland’s aircraft fleet, to not only to decrease emissions, but also to reduce Iceland’s import dependence, improve air quality around Keflavík Airport and bolster energy security.”

Philippe Haffner, Haffner Energy co-founder and CEO, added, “We are thrilled about this exciting project with IðunnH2. Biocarbon is far easier and cheaper to transport and store than CO2, which will make many eSAF projects economically viable.” 

Marcella Franchi, the head of SAF at Haffner Energy, said, “We are excited to embark on this eSAF project with IðunnH2 in Iceland, an ideal location for competitive hydrogen production. This agreement bridges the technological and geographical gap, paving the way for competitive eSAF production with innovative technology.” 

IðunnH2’s 300-megawatt eSAF facility in Helguvík, Iceland, will produce 65,000 tons of carbon-neutral SAF, thanks to green hydrogen from wind, geothermal and hydropower.

SAF will be blended onsite with traditional jet fuel and used in existing fleets and infrastructure.

Production is scheduled to start in 2028.

The project aligns with the SAF EU mandate.

Supplying the equivalent of 15 percent of Iceland’s projected 2028 total jet-fuel demand, this eSAF facility will allow airlines at Keflavík Airport to exceed the 2030 blending requirement.

Icelandair has already committed to using up to 45,000 tons per year.