Syzygy Plasmonics and IFC Partner on SAF Projects in Latin America

Syzygy Plasmonics and the International Finance Corporation (IFC) announced a framework agreement on August 18, 2026, to develop a pipeline of SAF projects across Latin America, beginning with a commercial-scale facility in Uruguay.

The partnership, detailed in a press release issued by Syzygy Plasmonics, pairs the company’s proprietary light-driven reactor technology with the IFC’s technical and commercial advisory services. The initiative targets emerging markets by utilizing regional renewable energy and biogas feedstocks to produce lower-carbon alternatives to conventional jet fuel.

The NovaSAF-1 project in Uruguay

The first project under this framework is NovaSAF-1, located in Durazno, Uruguay. The facility is projected to produce an estimated 350,000 gallons of SAF annually. Syzygy Plasmonics has set a target year of 2028 for the commencement of commercial-scale operations and initial fuel deliveries from the site.

NovaSAF-1 will utilize biogas sourced from the nearby Estancias Del Lago powdered milk plant. This biogas will be combined with Uruguayan renewable electricity to produce synthetic paraffinic kerosene. The production process integrates Syzygy’s light-driven technology with Fischer-Tropsch technology licensed from Velocys to maximize fuel output. According to Syzygy Plasmonics, this process yields an estimated reduction in lifecycle greenhouse gas emissions of up to 90 percent compared with conventional jet fuel.

Commercial backing and offtake agreements

The IFC framework agreement follows established commercial commitments for the NovaSAF-1 facility. On January 20, 2026, global commodities group Trafigura signed a binding six-year offtake agreement to purchase the entire production volume from the Uruguayan plant. The agreement also includes an option for Trafigura to purchase additional volumes from future Syzygy projects.

Syzygy Plasmonics CEO Trevor Best described the commercial arrangements as a critical step toward commercial-scale impact and disrupting the SAF market. The IFC, a member of the World Bank Group, will provide advisory support to help scale these operations across the region.

“The transition to lower-carbon aviation will depend on technologies that are not only innovative, but commercially viable and scalable,” said Raphaël Eskinazi, IFC Regional Investment Manager for Manufacturing and Forests in Latin America and the Caribbean. “IFC’s role is to help bridge that transition: supporting pioneering projects that can mobilize private capital, demonstrate new business models and create pathways for broader market adoption across emerging economies.”

AirPro News analysis

We view the alignment of IFC advisory services, Trafigura’s guaranteed offtake, and Velocys’ established Fischer-Tropsch technology as a significant de-risking mechanism for Syzygy Plasmonics. Scaling novel SAF production methods, particularly those categorized as Renewable Fuels of Non-Biological Origin (RFNBO), typically faces steep financing hurdles. By securing a guaranteed buyer for 100 percent of the initial plant’s output before finalizing the IFC framework, Syzygy has demonstrated a clear path to revenue.

Latin America presents a highly favorable environment for RFNBO production. The region offers abundant agricultural waste for biogas and a growing grid of renewable electricity. If NovaSAF-1 meets its 2028 production targets, the framework agreement with the IFC positions Syzygy to replicate this model rapidly across other agricultural and renewable energy hubs in the Southern Hemisphere.

Sources: Syzygy Plasmonics via PR Newswire (IFC Agreement)