Luxembourg-based Luxaviation, one of the world’s largest operators, plans to blend SAF into its fuel supply to cut lifecycle CO₂ emissions, respond to client demand for lower-carbon travel, and comply with upcoming EU mandates.

Under the Europe ReFuelEU Aviation legislation, aircraft fuel suppliers must ensure a 2% SAF blend, which will incrementally increase to a 70% share by 2050.

In 2023, Luvaviation launched its Go-to-Zero investment fund to foster SAF production and use. The Haffner deal builds on that strategy by locking in long-term supply under fixed terms.

However, exact volumes remain undisclosed.

“For Luxaviation, securing long-term SAF supply is not only an investment in our operations – it is a commitment to our clients and to the industry’s future,” Patrick Hansen, CEO of Luxaviation Group, said.

Haffner Energy converts residues into syngas via a thermochemical process, adds green hydrogen to balance the chemistry. The French company then upgrades the mix through synthesis into drop-in SAF.

The energy firm has already announced SAF projects in France and Iceland, aiming for full-scale production by 2030 in line with the next stage of EU mandates.

Philippe Haffner, the company’s co-founder and CEO, said the agreement with Luxaviation will “facilitate the financing of SAF projects in Europe.”

Haffner continued, “Securing long-term offtake agreements is one of the most crucial conditions for financing SAF production facilities, as they guarantee the purchase of SAF at a stable price over periods exceeding five years.”

Last February, Haffner began biomass-based hydrogen production at its Marolles site in France ahead of first commercial use.

The facility uses a thermochemical process to convert wood residues into “mobility-grade” hydrogen at a rate of 15kg per hour, designed to operate continuously for 8,000 hours per year.

Such projects highlight hydrogen’s role in enabling cleaner fuels like SAF. Although some in the sector warn that overly strict standards could hinder adoption despite supportive policies.

Andrew Symes, CEO of the Oxford University spinout, said to H2 View that rigid green hydrogen rules could stall the SAF market, with some analysts estimating costs could rise by about €2.4/kg ($2.63/kg).