Provectus Biofuels secures nonbinding intent for SAF offtake with airport in Alberta

Provectus Biofuels Inc. announced Sept. 10 the company has signed a nonbinding letter of intent (LOI) with a regional Alberta airport that sets out indicative terms under which both parties intend to negotiate a definitive long‑term offtake agreement for sustainable aviation fuel (SAF) produced from Provectus’ Dobrojet biofuels facility, once operational.

The LOI is for the offtake of up to 10 million liters (2.64 million gallons) of renewable jet fuel conforming to ASTM D1655 (or a successor standard) and fully certified for use as Jet A‑1 after blending, meeting all additive and quality requirements applicable at the time of delivery.

This represents 10 percent of the total projected production capacity at Provectus’ planned Dobrojet biofuels facility that is to be sited in Vegreville, Alberta, Canada.

Deliveries are expected to begin in 2029.

“Forward-thinking airports and airlines that are aware of the impact of global regulations and the current constraints on renewable sustainable jet-fuel supply recognize the urgent need to secure low-carbon aviation fuel for their future fuel supply portfolio,” said Jon Jaque, CEO of Provectus.

“The growth in low-carbon aviation-fuel volumes under binding contract continue to outpace the addition of actual production capacity globally,” Jaque said.

“As the growing gap between supply and demand causes the price premium on forward volumes to expand further, we expect to add additional offtake agreements to our portfolio,” he added.

In 2024 the International Air Transport Association reported binding contracts for 16.25 billion liters (4.3 billion gallons) of SAF for delivery in 2030.

As of June 1, only 2.5 billion liters (660.4 million gallons) of SAF was expected to be produced globally in 2025.

The growing gap between supply and demand is contributing to the 14.8 percent year-over-year growth in the premium for low-carbon aviation fuel from 2.7 times the cost of regular jet fuel in 2024 to 3.1 times in 2025, as reported by IATA.