Luxaviation Group, one of the world’s largest private aviation operators, has signed a strategic Memorandum of Understanding (MOU) with Icelandic e-fuel innovator IdunnH2 for the long-term supply of synthetic Sustainable Aviation Fuel (eSAF). The agreement marks a major step in Luxaviation’s drive to decarbonize business aviation.

Under the 15-year offtake framework, IdunnH2 will supply up to 10,000 metric tonnes of RFNBO-compliant eSAF annually from 2029. The fuel, produced near Iceland’s Keflavík International Airport using renewable electricity and recycled CO₂, will meet EU RED II and ReFuelEU standards and be distributed via a book-and-claim system across the European Economic Area.

Nanna Baldvinsdóttir, CEO of IdunnH2, emphasized the importance of the deal: “The agreement reflects what it takes to make eSAF work: long-term demand, credible certification, and delivery systems that can scale. From a producer’s perspective, this is exactly the kind of agreement we need to move capital into needed eSAF infrastructure.”

The partnership supports the European Commission’s Sustainable Transport Investment Plan (STIP) and aims to keep pricing within the lower end of industry benchmarks. The final offtake agreement is expected by September 2026.

Patrick Hansen, CEO of Luxaviation Group, highlighted the historical significance: “Today’s agreement with IdunnH2 not only accelerates our SAF ambitions, it also pays tribute to the longstanding aviation bond between our two countries. Just as Luxembourg once opened its skies to Icelandic innovation, we are now forging the next chapter in that story through climate-conscious aviation.”

The Helguvík eSAF facility, operated by IdunnH2, will use Iceland’s 100% renewable energy and is expected to produce up to 65,000 tonnes of eSAF per year, making Iceland a key supplier for Europe’s SAF needs. Luxaviation’s role as a launch customer demonstrates how business aviation can drive investment in sustainable infrastructure and accelerate the industry’s transition to net zero.

Luxaviation continues to lead in aviation sustainability, from carbon calculators in its app to electrifying ground fleets and expanding SAF access. The partnership with IdunnH2 reinforces its commitment to providing clients with credible, high-integrity climate solutions.