Trafigura signs six-year offtake deal for biogas-based advanced SAF from Uruguay

Commodities trader Trafigura has signed a binding six-year offtake agreement to purchase the entire output of an advanced sustainable aviation fuel project in Uruguay that converts biogas into drop-in jet fuel using renewable electricity, the companies have said.

Under the agreement, announced Jan. 21, Trafigura will buy 100% of production from NovaSAF-1, the first commercial-scale facility being developed by SP Developments Uruguay, a subsidiary of US based Syzygy Plasmonics. First deliveries are targeted for 2028. The deal also includes an option for Trafigura to lift additional volumes from future Syzygy projects.

The project, located in Durazno, Uruguay, is expected to be the world's first fully electrified biogas-to-SAF facility producing fuels compliant with the EU's Renewable Fuels of Non-Biological Origin framework.

The pathway has received ISCC pre-certification and qualifies as Advanced BioSAF, positioning it to supply markets with tightening SAF mandates, including Europe and the UK.

NovaSAF-1 will use biogas sourced from agricultural waste at the Estancias del Lago dairy and agro-industrial complex, combined with Uruguay's largely renewable power grid, to produce synthetic paraffinic kerosene.

The fuel is expected to deliver lifecycle greenhouse gas emissions reductions of up to 90% compared with conventional jet fuel, according to the companies.

Initial production is expected to exceed 350,000 gal/year of ASTM-certified SAF.

"By providing commercial certainty through long-term offtake commitments, Trafigura can enable innovative companies like Syzygy to secure project financing and scale production," Jason Breslaw, head of low-carbon fuels business development at Trafigura, said.

Syzygy's technology uses light-driven chemical reactors powered by renewable electricity to convert raw biogas directly into syngas, which is then upgraded into jet fuel using Fischer-Tropsch and hydrotreating technologies.

The electrified process avoids fossil fuel combustion and costly gas upgrading, improving both carbon intensity and economics.

"This agreement marks a critical step in moving from development to commercial-scale impact," Syzygy Plasmonics CEO Trevor Best said. "With FEED completed and an offtake agreement in place, we are now positioned to secure financing and advance construction."

The project follows growing industry concern over the structural limits of traditional SAF feedstocks such as used cooking oil and animal fats. Electrified biogas-to-liquids pathways are increasingly viewed as a potential solution to feedstock scarcity while meeting increasingly stringent sustainability rules.

Platts, part of S&P Global Energy, last assessed Jan. 15 the SAF (HEFA-SPK) FOB FARAG outright price up 1.9% week over week at $2,310/mt, despite a lack of buying interest, as jet FOB FARAG levels rose $59.25/mt.

The SAF premium to jet barges fell $20/mt over this period, closing at $1,540/mt, with CIF cargoes remaining at a $10/mt premium.