The proof-of-concept system will aim to be used to validate Canadian-based Syntholene’s approach to hydrogen production for use in synthetic aviation fuels (e-SAF) and other e-fuels.

Dynoelectro manufactures SOECs in 250kW, 1MW, and 5MW iterations, which it claims have a hydrogen output of up to 27kg/MWh and operate effectively at variable loads.

The Danish firm’s technology will be used at the demonstration facility, which will use up 20MW of energy from a dedicated geothermal energy resource to produce the fuels. The SOEC system’s size has not been revealed.

However, it will mark one of the first real-world deployments of Dynoelectro’s systems, after testing a 250kW version. In 2024, the firm secured €11m ($13m) from the EU and Danish state, along with some industrials, to develop and deploy a 1MW system.

Dan Sutton, CEO of Syntholene, said that the partnership comes as the result of a “rigorous” two-year evaluation process assessing major vendors on efficiency, reliability, and scalability.

“Industrial robustness is critical as we move from demonstration toward multi-megawatt commercial deployment”, Sutton continued.

In January, Icelandair signed a non-binding agreement for the offtake of up to 20,000 tonnes of the eSAF annually, depending on the confirmed repeatability of Syntholene’s production.

The new facility comes as companies across synthetic fuels look to support adherence to EU SAF mandates.

Under the EU’s RefuelEU Aviation plan, at least 1.2% of jet fuel supplied at EU airports must be synthetically derived by 2030.

While this represents part of a decent policy pull emerging in Europe, e-SAF’s scale-up faces various bottlenecks.

High production costs driven by expensive renewable electricity, limited eligible carbon dioxide sources, technology integration risks, infrastructure constraints, and ongoing uncertainty around long-term policy support could all hinder the rollout of e-SAF.