Syzygy and IFC Sign Agreement to Accelerate SAF Project Development in Uruguay

en.Wedoany.com Reported - On August 18, U.S.-based light-driven sustainable aviation fuel (SAF) technology company Syzygy Plasmonics and the International Finance Corporation (IFC) have completed the signing of a framework agreement. IFC will provide technical and commercial advisory services for the development of Syzygy's SAF project pipeline in Latin America. The first project supported under this framework is NovaSAF-1, located in Durazno, Uruguay, which will be the world's first commercial-scale electrified biogas-to-SAF facility. The project represents an investment of approximately $60 million, with a designed annual production capacity of 350,000 gallons (approximately 1,060 tonnes), and is expected to commence operations in 2028.

The NovaSAF-1 project has been progressing steadily since its site selection was announced in 2025. In March 2026, the Uruguayan government confirmed that the land lease agreement for Durazno had been signed. The project is currently in the front-end engineering design (FEED) stage, expected to be completed by the end of 2026, with a final investment decision (FID) targeted for 2027. If the project proceeds as planned, the first SAF deliveries will be achieved in 2028. Syzygy's technology employs light-driven photocatalytic reactors, producing SAF from renewable electricity and biogas without relying on fossil fuel combustion for heat. Lifecycle greenhouse gas emissions can be reduced by up to 90% compared to conventional jet fuel. This technological pathway differentiates itself from the mainstream HEFA (hydroprocessed esters and fatty acids) and Alcohol-to-Jet (AtJ) processes, which still face emission and efficiency bottlenecks in feedstock supply and thermochemical conversion. Syzygy's technology has received pre-certification as renewable fuel of non-biological origin (RFNBO) under international standards.

On the feedstock and offtake front, Syzygy has established a complete supply chain agreement structure. On the feedstock side, the company has signed supply agreements with Estancias del Lago and Geo Bio Gas & Carbon. The project will utilize local ranch biogas, directly reducing methane emissions from pastures and generating additional climate financing through carbon credit mechanisms. On the offtake side, global commodity trader Trafigura has signed a binding offtake agreement covering the full production capacity of NovaSAF-1, with first deliveries expected to commence in 2028. Trafigura and World Fuel Services have also signed capacity reservation agreements for future regional projects.

IFC's involvement in this initiative is not an isolated action. In May 2026, IFC announced a $60 million investment in the Cleaner Fuels Alliance (CBI) to support the development of low-carbon fuel projects in Latin America. This collaboration with Syzygy creates synergies with IFC's broader positioning across the Latin American SAF value chain—from upstream technology validation to midstream project financing and downstream offtake structuring, IFC is providing full-chain institutional support for the Latin American SAF industry. Syzygy's long-term goal is to establish 1 million tonnes of annual SAF production capacity in Brazil by 2035, a scale equivalent to approximately 20% of the demand corresponding to Brazil's 2035 SAF blending mandate (approximately 5%), which holds strategic significance for Brazil's aviation decarbonization.