Uruguay’s preparing to launch NovaSAF-1, which will be the world’s first electrified biogas-to-fuel plant. The facility represents a significant departure from conventional sustainable fuel production methods.
The plant will transform waste from Uruguay’s extensive dairy operations into aviation fuel through an electrified process powered by renewable energy sources. This approach eliminates the need for high-temperature combustion that traditional biogas facilities require, reducing both energy costs and operational complexity.
Uruguay’s choice as the location makes practical sense. The country generates over 95% of its electricity from renewable sources, primarily hydroelectric and wind power. This clean energy grid provides the foundation needed to power the electrified conversion process without relying on fossil fuels.
The technology works by using electricity to drive chemical reactions that convert biogas into synthetic aviation fuel. Traditional biogas plants burn methane to generate heat for fuel synthesis, but this electrified method uses renewable electricity to achieve the same chemical transformations at lower temperatures. The process requires fewer processing steps and produces fewer waste byproducts.
Dairy waste serves as the primary feedstock, which aligns well with Uruguay’s agricultural profile. The country maintains approximately 3.8 million dairy cattle, generating substantial amounts of organic waste that currently contributes to methane emissions. Converting this waste into fuel addresses both waste management challenges and aviation industry demands for cleaner fuel alternatives.
The plant’s design incorporates proven technologies in new combinations rather than relying on experimental processes. Biogas production from organic waste is well-established, and electrified chemical synthesis has been demonstrated in laboratory settings.
NovaSAF-1 will be the first facility to combine these technologies at commercial scale for aviation fuel production.
Key Takeaways
Uruguay’s NovaSAF-1 plant breaks new ground by using light-powered technology to turn dairy farm waste gas straight into jet fuel. This skips the usual gasification process that most facilities rely on, making the whole operation more streamlined.
The plant starts with 350,000 gallons per year, then ramps up to 500,000 gallons once everything’s running smoothly. That output cuts carbon emissions by more than 80% compared to regular jet fuel – a significant improvement that airlines are eager to get their hands on.
What makes this facility special is how it works. Light-driven reactors take the biogas and convert it into the exact type of synthetic gas needed for Fischer-Tropsch synthesis. This process creates the final fuel product without requiring expensive hydrogen production steps that bog down other operations and waste energy.
Trafigura has locked in a six-year deal to buy everything the plant produces. Construction wraps up in 2027, with the first fuel shipments heading out in 2028. The timing gives Uruguay a head start in the growing sustainable aviation fuel market.
This project makes sense for Uruguay on multiple levels. The country runs almost entirely on renewable electricity, which powers the light-based conversion process. Capturing methane that would otherwise escape from dairy operations tackles a major greenhouse gas problem while creating manufacturing jobs and drawing international investment to the region.
What Makes NovaSAF-1 Different From Traditional SAF Production?
Most sustainable aviation fuel plants operate like complex refineries, requiring multiple processing stages, specialized equipment, and significant water consumption. Uruguay’s NovaSAF-1 facility takes a fundamentally different approach by eliminating the gasification step that typically defines SAF production.
The plant employs photocatalytic technology to transform raw biogas directly into jet fuel components. This light-activated process bypasses the costly hydrogen production phase that conventional facilities require through electrolysis. Since Uruguay generates over 98% of its electricity from renewable sources—primarily wind and hydroelectric power—the entire production chain maintains its environmental credentials.
Cost savings emerge from this streamlined design. The facility’s modular construction allows installation directly on dairy operations without extensive site preparation or infrastructure development. Pipeline networks become unnecessary when the fuel source and production site occupy the same location. Water requirements drop significantly compared to traditional SAF manufacturing methods. The facility achieves greater than 80% reduction in carbon intensity compared to conventional Jet-A fuel.
Rural deployment becomes viable under this model. Many agricultural regions worldwide possess abundant biogas resources but lack the industrial infrastructure needed for conventional fuel production. The compact, self-contained design of facilities like NovaSAF-1 could enable fuel production in areas previously considered unsuitable for such operations.
How Does NovaSAF-1 Turn Biogas Into Jet Fuel Using Light?
The conversion process starts when dairy waste breaks down inside sealed tanks at the Estancias Del Lago facility in Uruguay. This decomposition creates biogas containing methane and carbon dioxide. Rather than releasing these gases into the atmosphere, the plant captures them for fuel production.
Light-based technology transforms how this biogas becomes aviation fuel:
| Traditional Method | NovaSAF Process |
|---|---|
| Uses water and steam | Uses light-driven reactors |
| Requires expensive equipment | Simpler technology |
| Intricate multi-step process | Streamlined pathway |
| Higher costs | Lower production costs |
Light-driven reactors convert the captured gases into syngas—a mixture with the optimal 2:1 hydrogen-to-carbon monoxide ratio needed for fuel synthesis. This syngas feeds into Fischer-Tropsch synthesis, which produces jet fuel that meets aviation standards. The process runs entirely on renewable electricity from Uruguay’s wind and hydroelectric grid, eliminating the need for fossil fuel inputs or complex green hydrogen production systems. The modular design enables rapid implementation and future scalability beyond the initial NovaSAF-1 facility.
Uruguay’s abundant renewable energy capacity makes this approach particularly effective. The country generates over 95% of its electricity from renewable sources, providing the clean power needed to operate the light-driven reactors without increasing carbon emissions.
500,000 Gallons Per Year: Production Scale and Climate Impact
Uruguay’s new facility will pump out 350,000 gallons of sustainable aviation fuel annually, scaling up to 500,000 gallons at full capacity. This volume can fuel thousands of flights while slashing the pollution that aircraft typically dump into the atmosphere.
The numbers tell a compelling story about climate impact. This production method cuts emissions by more than 80% when you stack it against conventional jet fuel. The facility taps into Uruguay’s electricity grid, which runs almost entirely on wind, solar, and hydroelectric power. At the same time, it captures methane that would otherwise leak from dairy operations across the countryside – methane that packs 25 times more warming punch than carbon dioxide.
The real game-changer lies in how easily this setup can spread. More than 50,000 biogas sites operate around the globe, creating a massive network of potential fuel production points. Airlines can shrink their carbon footprint through this distributed approach while travelers notice zero difference in their flying experience. The plant’s modular design allows for faster deployment and lower risks compared to building traditional fuel facilities from scratch. Each new plant built using this template moves the aviation industry closer to genuinely clean skies.
Who’s Buying NovaSAF-1 Fuel and When Does Production Start?
Trafigura Pte Ltd has secured exclusive rights to every gallon flowing from this Uruguayan facility. The global energy trader’s six-year binding agreement with SP Developments Uruguay guarantees them the complete output from the Durazno plant before construction begins.
Guaranteed buyers create the financial backbone that transforms ambitious concepts into operating facilities. Building groundbreaking fuel production requires this level of commitment upfront, particularly when investors need certainty about future revenue streams.
SP Developments targets a final investment decision by late 2025, positioning commercial operations to launch in early 2027. First fuel shipments should reach aviation customers throughout 2028.
This deal signals real momentum for sustainable aviation fuel adoption. Jason Breslaw, who oversees Trafigura’s low carbon fuels division, views the agreement as crucial infrastructure for airlines facing stricter emissions standards worldwide. The partnership gives carriers access to fuel that can reduce their carbon footprint while meeting regulatory requirements across different markets. The facility will produce SAF with 90% lower lifecycle emissions compared to conventional fossil jet fuel.
Why Uruguay’s 100% Renewable Grid Powers This SAF Revolution
While most countries still burn coal and gas to keep the lights on, Uruguay runs almost entirely on nature’s power. The nation achieved 99% renewable electricity in 2024, setting up ideal conditions for clean fuel production. When biogas plants draw from this clean grid, they avoid the hidden carbon emissions that come from coal or gas-powered electricity.
| Energy Source | Grid Share | Key Advantage |
|---|---|---|
| Hydroelectric | 42-46% | Reliable baseline power |
| Wind | 28-38% | Nighttime generation peak |
| Biomass | 14-26% | Industrial waste conversion |
Clean electricity powers every step of biogas production, which makes all the difference. Wind turbines generate most of their power at night, while hydroelectric dams provide steady output around the clock. Biomass plants convert agricultural waste into electricity, creating a circular system where nothing gets thrown away.
This energy independence has real economic benefits. Uruguay attracted nearly $6 billion in renewable energy investments over the past decade. Generation costs dropped by roughly 50% compared to the old fossil fuel system. Companies looking to produce sustainable aviation fuel can plug into this clean grid knowing their entire production chain runs on renewable power. The country’s position as a regional energy exporter strengthens its ability to maintain competitive pricing for domestic industrial operations.
References
- https://www.trade.gov/country-commercial-guides/uruguay-energy
- https://www.renewableenergymagazine.com/biofuels/trafigura-signs-offtake-agreement-for-advanced-saf-20260120
- https://www.trafigura.com/news-and-insights/press-releases/2026/trafigura-signs-offtake-agreement-for-advanced-sustainable-aviation-fuel-produced-from-biogas/
- https://aviationweek.com/air-transport/aircraft-propulsion/fuel-offtake-deal-boosts-plans-uruguayan-saf-plant
- https://velocys.com/projects/novasaf-1-biogas-to-saf/
- https://biofuels-news.com/news/syzygy-plasmonics-signs-landmark-offtake-agreement-with-trafigura-to-supply-advanced-saf/
- https://www.upi.com/Top_News/World-News/2026/01/21/latam-uruguay-biogas-aviation-fuel-plant/7531769012810/
- https://biomassmagazine.com/articles/syzygy-plasmonics-signs-commercial-offtake-agreement-with-trafigura-to-supply-advanced-saf
- https://kentplc.com/front-end-engineering-design-for-novasaf-1-the-worlds-first-electrified-biogas-to-saf-facility
- https://www.spglobal.com/energy/en/news-research/latest-news/agriculture/060425-syzygy-begins-work-on-worlds-first-electrified-biogas-to-saf-plant-in-uruguay
