Uniper Secures Long-Term eSAF Supply in Major Deal with Arcadia eFuels

German state-owned utility Uniper has entered into a long-term offtake agreement to procure synthetic sustainable aviation fuel (eSAF) from U.S.-based Arcadia eFuels. The deal, announced by the companies on Wednesday, is being described as one of the largest eSAF supply agreements to date.

Details of the Agreement

Under the terms of the deal, Uniper will purchase 40,000 metric tons of eSAF annually for a period of more than 10 years. The fuel will be supplied by Arcadia eFuels’ Endor project, located in Denmark.

Deliveries are scheduled to commence in the early 2030s. The companies noted that the annual volume is equivalent to the fuel required for approximately 1,000 Boeing 787-9 flights between Uniper's home base in Duesseldorf, Germany, and Abu Dhabi.

"eSAF is not only a fuel of the future – it is a present-day answer to the aviation sector’s demand for diversification of supply," said Arcadia eFuels CEO Amy Hebert in a statement, adding that the agreement brings large-scale production within the EU "meaningfully closer."

Market Impact and Regulatory Context

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This agreement marks a significant step in scaling up the production of green fuels for the aviation industry, which is considered one of the most challenging sectors to decarbonize. For Uniper, the deal supports its strategy to establish a strong position in a market with high growth potential.

"The key challenge now is to move sustainable aviation fuels from promising projects to industrial scale," said Uniper CEO Michael Lewis. He described the deal as an "important step" for the company.

The deal is also aligned with upcoming European Union regulations designed to boost the use of green fuels. These mandates require that:

• Sustainable aviation fuels (SAF) account for 2% of fuel at EU airports in 2025, rising to 6% in 2030.
• A specific sub-mandate for eSAF will require it to make up 1.2% of the total fuel supply from 2030, increasing to 5% in 2035.