Chicago, Illinois--(Newsfile Corp. - January 20, 2026) - SYNTHOLENE ENERGY CORP (TSXV: ESAF) (FSE: 3DD0) ("Syntholene"), a leader in low-cost synthetic fuel, announces it has signed a non-binding Expression of Interest (the "EOI" or the "Agreement") with Icelandair, Iceland's leading hub carrier. The Agreement outlines Icelandair's interest in purchasing 20,000 tonnes (~25,000,000 liters) of synthetic sustainable aviation fuel (eSAF) annually over 10 years, upon upscaled production and given competitive pricing, reinforcing the airline's commitment to reducing its carbon footprint and advancing global aviation sustainability.

Cannot view this video? Visit:
https://www.youtube.com/watch?v=CnV0VXGJnVg

"The transition to sustainable aviation fuel will only happen if production is scaled up and competitive pricing ensured," says Icelandair CEO Bogi Nils Bogason. "Working with Syntholene aligns with our focus on proportionately reducing carbon emissions while meeting regulatory SAF mandates."

"Iceland is one of our key regions as we work with leaders across their energy sector to deliver local production of synthetic fuels for their domestic and future export markets," stated Syntholene CEO Dan Sutton. "We are proud to be working with Icelandair to support its commitment to work towards sustainable development of aviation. With eSAF mandates accelerating in pivotal markets such as the EU Economic Zone and UK, partnerships like this are key to meeting rising demand."

The EOI represents a commercial validation for Syntholene and its opportunity to meet the European Union's commitment to decrease aviation emissions, showcasing the demand for its low-cost eSAF and its ability to deliver scalable, sustainable fuel solutions to meet industry needs in aviation and beyond.

The European Union Aviation Safety Agency Published market reference eSAF pricing of an average of €7,695 (US$9,065) per tonne, or €6.16 (US$7.26) per liter, in their 2024 Report Aviation Fuels Reference Prices for ReFuelEu Aviation (EASA).

The EU has also announced an eSAF subsidy of up to €6 per liter (Reuters) for Airlines who purchase eSAF to meet the mandated consumption amount of 1.3% eSAF in 2030, escalating to 10% by 2040 and 35% by 2050.

Pricing between Syntholene and Icelandair has not been established under this expression of interest. Any future pricing or commercial terms, if agreed, would be subject to further negotiation and the execution of a definitive fuel purchase agreement.

According to S&P Global, more than 60 airlines have set specific SAF targets for 2030 (S&P Global). This alignment across the global aviation sector reinforces the significance of the Agreement as sustainable fuel alternatives are becoming increasingly important to airlines' decarbonization strategies.

About Icelandair

With an extensive route network, Icelandair uses the unique geographical location of Iceland as a hub midway between Europe and North America. Since its foundation in 1937, the Company has steadily expanded its route network, offering direct flights to more than 60 destinations. Additional to the international route network, Icelandair operates a domestic network in Iceland, an airfreight and logistics business as well as aircraft leasing and consulting services. Icelandair is a publicly traded company, listed on Nasdaq Iceland.

About Synthetic Aviation Fuel (eSAF)

Synthetic aviation fuel is a clean, drop-in jet fuel made from renewable power, green hydrogen, and captured CO₂,offering up to 90% lower lifecycle emissions and helping airlines meet global decarbonization mandates without changing their aircraft engines or retrofitting.

According to a recently published report from DataM Intelligence, the eFuel sector is projected to expand at an unprecedented compound annual growth rate (CAGR) of 48.96% between 2025 and 2032, from ~US$8.5b in 2025 to ~US$215b.

The report examines key market developments, leading participants, and growth drivers, noting that "growing government support, large-scale investments in power-to-liquid technologies, and strategic collaborations among energy producers, automotive manufacturers, and airlines are accelerating technological advancements and commercial adoption, strengthening the long-term growth outlook of the e-fuel market."

Further, a report by MarketsandMarkets, projects the global sustainable aviation fuel market to expand from an estimated USD 2.06 billion in 2025 to approximately USD 25.62 billion by 2030,representing a compound annual growth rate (CAGR) of about 65.5%.

Within these projections lies the ReFuelEU Aviation Regulation, the European Union's landmark mandate requiring airlines and fuel suppliers to adopt sustainable aviation fuel (SAF) at all major EU and EU Economic Zone airports starting in 2025. The regulation sets binding, rising SAF blending requirements of 2% in 2025, 6% in 2030, 20% in 2035 and up to 70% by 2050, creating one of the world's largest mandated markets for clean low-carbon jet fuel (EASA).

The EU has also paired this demand-side measure with a supply-side subsidy, offering up to 6€ per liter to airlines who purchase eSAF specifically (Reuters). The combination of mandated demand and subsidized supply underscore the EU's seriousness on bolstering the rapid scale-up of eSAF production from producers like Syntholene.

About Syntholene

Syntholene is actively commercializing a new production pathway for low-cost clean fuel synthesis. The target output is ultrapure synthetic jet fuel, manufactured at 70% lower cost than the nearest competing technology. The company's mission is to deliver the world's first truly high-performance, low-cost, and carbon-neutral synthetic fuel at an industrial scale.

Syntholene's power-to-liquid strategy harnesses thermal energy to power proprietary integrations of hydrogen production and fuel synthesis. Syntholene has secured 20MW of dedicated energy in Iceland to support the Company's upcoming demonstration facility and commercial scale-up.

Founded by experienced operators across advanced energy infrastructure, nuclear technology, low-emissions steel refining, process engineering, and capital markets, Syntholene aims to be the first team to deliver a scalable modular production platform for cost-competitive synthetic fuel, thus accelerating the commercialization of carbon-neutral efuels across global markets.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "aims", "continue", "estimate", "objective", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. All statements, other than statements of historical fact, including but not limited to statements regarding the completion of the definitive agreement, successful implementation of the test facility, commercial scalability, technical and economic viability, anticipated geothermal power availability, and future commercial opportunities, are forward-looking statements.

The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

Actual results could differ materially from those currently anticipated due to a number of factors and risks, including, without limitation, Syntholene's ability to meet production targets, realize projected economic benefits, overcome technical challenges, secure financing, maintain regulatory compliance, manage geopolitical risks, and successfully negotiate definitive terms. Syntholene does not undertake any obligation to update or revise these forward-looking statements, except as required by applicable securities laws.

Readers are advised to exercise caution and not to place undue reliance on these forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280813