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In a significant move towards sustainable aviation, Haffner Energy has finalized a 15-year offtake agreement with Luxaviation Group, a leading player in the business aviation sector. This partnership is set to blend sustainable aviation fuel (SAF) into Luxaviation's fuel supply chain in response to growing client demand for lower carbon travel options and compliance with impending European Union regulations. Under the upcoming EU ReFuelEU aviation legislation, fuel suppliers are required to incorporate a 2% SAF blend, gradually escalating to 70% by 2050.

The agreement aligns with Luxaviation’s recently launched Go to Zero investment fund, which aims to accelerate the production and utilization of SAF. Patrick Hansen, CEO of Luxaviation, emphasized that securing a long-term supply of SAF reflects a commitment not only to operational investments but also to the future of the aviation industry.

Haffner Energy utilizes a thermochemical process to convert various residues into syngas, subsequently adding green hydrogen to create a balanced chemical mixture. This blend is further upgraded through synthesis into a drop-in SAF. The French company is already progressing with SAF projects in France and Iceland, targeting full-scale production by 2030 in alignment with evolving EU mandates.

Philippe Haffner, co-founder and CEO of Haffner Energy, noted that this strategic agreement will enhance the financing of SAF projects across Europe. He underscored the importance of long-term offtake agreements, which ensure the stable purchase of SAF at fixed prices, a vital consideration for financing production facilities that can operate sustainably.

Earlier this year, Haffner initiated biomass-based hydrogen production at its Marolles facility in France, designed to generate mobility-grade hydrogen continuously. This project underscores the critical role of hydrogen in developing cleaner fuels like SAF.

However, some industry experts caution that overly stringent regulations on green hydrogen could impede market growth, with projections indicating potential cost increases. This tension between regulatory frameworks and market dynamics will be pivotal in shaping the future of sustainable aviation fuel.