A Houston-based technology company just secured a deal that could reshape how aviation thinks about sustainable fuel.
Syzygy Plasmonics has signed a binding six-year offtake agreement with Trafigura, one of the world's leading commodity traders. The deal covers the entire production volume from Syzygy's first commercial facility in Uruguay, with deliveries expected to begin in 2028.
What makes this facility special? It will become the world's first electrified biogas-to-SAF plant producing RFNBO-compliant fuel, a category that meets the strictest European sustainability standards.
>> In Other News: ExxonMobil Faces Antitrust Claims Over Blue Ammonia Project's CO2 Pipeline Access
The NovaSAF-1 project, located in Durazno, Uruguay, represents a new pathway for producing sustainable aviation fuel. Instead of relying on conventional feedstocks like vegetable oils or fats, Syzygy's technology converts biogas sourced from the Estancias Del Lago powdered milk plant into synthetic paraffinic kerosene (SPK).
The process uses Syzygy's proprietary photocatalytic reactor technology, which replaces fossil fuel combustion with renewable electricity. Uruguay's abundant renewable grid powers the entire operation.
"This agreement marks a critical step in our journey toward commercial-scale impact and disrupting the SAF market. With a signed offtake agreement from a global leader like Trafigura, and after having successfully completed FEED engineering in December, we're now ready to secure financing for the construction of NovaSAF-1 and move our technology from potential into production."
Trevor Best, CEO of Syzygy Plasmonics
The company completed its Front-End Engineering Design (FEED) in December 2025, setting the stage for project financing and construction.
>> RELATED: ESAF Takes Flight: Power-to-Liquid Tech Sparks 48% Growth
The sustainable aviation fuel market is hungry for new production methods. Traditional SAF feedstocks like waste oils and animal fats face growing supply constraints.
Syzygy's approach sidesteps these limitations by tapping into biogas. The resulting fuel delivers 90% lower lifecycle emissions than conventional jet fuel.
The NovaSAF-1 project in Uruguay utilizes light-driven technology to convert dairy biogas into synthetic paraffinic kerosene, targeting a 90% reduction in lifecycle emissions.
The pathway has received ISCC pre-certification to produce both Renewable Fuels of Non-Biological Origin (RFNBO) and Advanced BioSAF compliant fuels. This certification positions the fuel to meet expanding SAF mandates in Europe, the UK, and other markets.
For Trafigura, this deal extends its reach across the entire low-carbon fuels supply chain. The commodity giant already operates feedstock sourcing, blending, distribution, and into-wing supply to aviation customers globally through subsidiaries like Greenlife, Impala Terminals, and Greenergy.
"This offtake agreement complements our strategy to support the industry's efforts to diversify SAF supply, particularly as regulations increasingly mandate the use of advanced fuels. Trafigura's global low-carbon fuels network positions us to help aviation customers meet these requirements efficiently and cost effectively."
Jason Breslaw, Head of Low Carbon Fuels Business Development at Trafigura
The agreement also includes an option for Trafigura to purchase additional volumes from Syzygy's future projects, potentially locking in a long-term supply relationship.
Syzygy Plasmonics has built momentum through strategic investments. Mitsubishi Heavy Industries invested in Syzygy Plasmonics to advance hydrogen and CO2 utilization, while the company raised $76 million in Series C funding from Carbon Direct Capital, Aramco Ventures, Chevron Technology Ventures, and others.
Syzygy's rapid progression from Series C funding to confirmed commercial offtake and targeted delivery.
With Uruguay as the proving ground, Syzygy aims to replicate this model globally and achieve 1 gigaton of carbon emissions reductions by 2040.
The Uruguay project validates Syzygy's technology for future North American deployment. As SAF production scales up across the United States, new feedstock pathways like electrified biogas conversion could help meet ambitious federal targets.
The U.S. aims for three billion gallons of SAF annually by 2030. Companies like Twelve are already building commercial-scale facilities, but the industry needs multiple production pathways. Syzygy's modular platform could offer a scalable solution wherever biogas and renewable electricity converge.
Syzygy's next milestone is fundraising to build NovaSAF-1. With binding offtake secured and engineering complete, the company has cleared major barriers that typically slow project financing.
This deal signals the SAF market is moving beyond pilot projects. Commercial-scale agreements between technology developers and global commodity traders suggest the industry is ready. For airlines scrambling to meet sustainability commitments, that's exactly the progress they need.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 🧪 Why Bill Gates Bet $40M on This Carbon Capture Lab ⛏️ Max Power Prepares to Drill Second Natural Hydrogen Well as Program Expands 325 km SW of Lawson Discovery 💰 Trafigura-Back...
Inside This Issue 🚪 Honda Exits Fuel Cell Partnership as Hydrogen Pivots ♻️ A Breakthrough That Turns Exhaust CO2 Into Useful Materials ✈️ FedEx Takes Delivery of SAF at Dallas Fort Worth and New ...
Inside This Issue 🔍 QIMC Hits 5,558 ppm Hydrogen in Nova Scotia Discovery 🏗️ Haffner Energy Launches the C-iC Modular Units Line to Unlock Financing for Mid-Sized Biofuel Projects 🌱 CF Industries,...
ExxonMobil Faces Antitrust Claims Over Blue Ammonia Project's CO2 Pipeline Access
ExxonMobil and its Denbury subsidiary are facing expanded antitrust claims in Texas after a blue ammonia developer alleged the oil major used its control over carbon dioxide pipelines to block a co...
The Civil Aviation Authority of Singapore (CAAS), the Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo) and nine companies have launched Singapore's first trial for central procurement of vo...
TORONTO, Feb. 3, 2026 /CNW/ - PaceZero Capital Partners ("PaceZero") announced today that it entered into a committed credit facility with Alchemy CO₂ ("Alchemy"). The funding will support Alchemy'...
EU Sets World’s First Voluntary Standard for Permanent Carbon Removals
Today, the European Commission adopted the first set of methodologies under the carbon removals and carbon farming (CRCF) Regulation to certify activities that permanently remove CO2 from the atmos...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.