Trafigura signs offtake agreement for sustainable aviation fuel

By Global Infrastructure Sherpa · Jan 20, 2026

Offtake Agreement Biogas signed Durazno, Uruguay Jan 20, 2026

development

Stage

NovaSAF-1

Project

Trafigura has signed a binding six-year offtake agreement with Syzygy Plasmonics to purchase advanced sustainable aviation fuel from Syzygy's first commercial facility in Uruguay. The agreement covers the entire production volume from Syzygy's flagship biogas-to-SAF project, with first deliveries targeted in 2028.

Deal Analysis

Trafigura's six-year offtake agreement with Syzygy Plasmonics for sustainable aviation fuel (SAF) produced at Syzygy's NovaSAF-1 project in Uruguay signifies a growing commitment to advanced biofuels within the aviation sector. The agreement, targeting first deliveries in 2028, covers the entire production volume from Syzygy's flagship biogas-to-SAF project, demonstrating Trafigura's intent to secure long-term supplies of SAF. This deal underscores the increasing demand for SAF as the aviation industry seeks to decarbonize and meet sustainability targets. This agreement is notable due to its long-term nature and the involvement of a major commodity trader like Trafigura, signaling a potential shift towards greater investment in and commercialization of innovative SAF production technologies. Syzygy Plasmonics' novel photocatalyst technology for biogas-to-SAF conversion further distinguishes this project. The location in Uruguay also highlights the potential for SAF production in South America, leveraging biogas resources. This deal could serve as a model for future partnerships between technology developers and commodity traders in the SAF market.

Six-year offtake agreement between Trafigura and Syzygy Plasmonics.
Covers entire production volume from Syzygy's biogas-to-SAF project in Uruguay.
Involves Syzygy's novel photocatalyst technology.
Highlights potential for SAF production in South America.

Market Context: The sustainable aviation fuel (SAF) market is rapidly expanding as airlines and governments seek to reduce carbon emissions from air travel. Biogas-to-SAF pathways are gaining traction as a potentially sustainable and scalable solution. Commodity traders like Trafigura are increasingly investing in SAF projects to secure supply and capitalize on the growing demand.