ATOBA Energy and Flying Forest Forge Long-Term Sustainable Aviation Fuel Partnership to Accelerate Clean Aviation Transition
ATOBA Energy, a rapidly emerging leader in sustainable aviation fuel (SAF) aggregation and commercialization, has announced the signing of a Letter of Intent (LOI) with Flying Forest, an innovative renewable fuels developer, to establish a long-term SAF offtake agreement. The collaboration represents a significant milestone for both companies and underscores growing momentum within the aviation sector to scale low-carbon fuel solutions at industrial levels.
Under the terms outlined in the LOI, ATOBA Energy intends to integrate Flying Forest’s future SAF production into its aggregation platform, creating a commercially viable pathway to market for the Finnish-based developer’s flagship project. For Flying Forest, the agreement offers a critical step toward securing long-term revenue certainty—an essential requirement for unlocking project financing and advancing toward final investment decision (FID). For ATOBA, the partnership strengthens its role as a bridge between SAF producers and airline customers seeking reliable, competitively priced sustainable fuel supplies.
Together, the two companies aim to address one of the most persistent bottlenecks in the SAF market: aligning the financial and operational needs of fuel producers with the commercial realities faced by airlines.
A Breakthrough Project Anchored in Finland’s Forestry Economy
At the heart of the agreement is Flying Forest’s large-scale SAF production project in Iisalmi, Finland. The facility is designed to convert locally sourced wood waste into drop-in sustainable aviation fuel using advanced methanol-to-jet technology—a pathway increasingly viewed as a scalable and cost-efficient route to SAF production.
Once fully operational, the Iisalmi facility is expected to produce approximately 200,000 metric tons of SAF per year across three production lines. Flying Forest has also identified opportunities for future expansion, potentially replicating the model at additional nearby sites to further increase output and serve growing European and global demand.
Finland’s extensive forestry industry provides a strong foundation for the project. Flying Forest has already secured agreements with local sawmills to access up to 3.75 million tons of sawmill co-products and non-commercial round wood annually. These materials—often considered low-value or waste byproducts—will be transformed into high-value, low-carbon aviation fuel, reinforcing circular economy principles while supporting regional economic activity.
By relying on locally sourced feedstocks, Flying Forest not only reduces transportation-related emissions but also enhances supply chain resilience, a factor that has become increasingly important amid global energy market volatility.
Turning Residues into Climate Solutions
The Flying Forest project highlights how waste-based feedstocks can play a central role in decarbonizing hard-to-abate sectors such as aviation. Unlike fossil-based jet fuel, SAF produced from forestry residues can deliver substantial lifecycle greenhouse gas emission reductions while remaining fully compatible with existing aircraft and fueling infrastructure.
Advanced methanol-to-jet technology enables the conversion of biomass-derived methanol into synthetic aviation fuel that meets stringent international aviation standards. This pathway offers scalability advantages compared with some first-generation biofuel technologies, particularly in regions with strong access to sustainable biomass resources.
For Finland, the project aligns closely with national and EU climate objectives, including emissions reduction targets and renewable energy mandates. For the broader aviation industry, it represents another step toward building the diversified SAF supply base needed to meet airline commitments to net-zero emissions by 2050.
Solving the SAF Commercialization Challenge
Despite strong demand signals, SAF adoption has been constrained by economic and structural challenges. Producers typically require long-term offtake agreements to secure financing for capital-intensive facilities, while airlines often seek flexibility and competitive pricing in a market still characterized by limited supply and higher costs than conventional jet fuel.
ATOBA Energy was founded specifically to resolve this mismatch. Its aggregation platform pools SAF volumes from multiple producers and distributes them across a broad airline customer base, creating scale, diversification, and pricing stability for both sides of the market.
Through its partnership with Flying Forest, ATOBA will incorporate the Finnish project’s SAF output into its portfolio, offering airlines access to additional volumes while providing Flying Forest with bankable, long-term demand commitments.
“Scaling sustainable aviation fuel requires innovative commercial structures that work for producers and end customers alike,” said Paul Groves, Chief Executive Officer of Flying Forest. “Our collaboration with ATOBA Energy helps build the aligned ecosystem needed to drive innovation, attract investment, and accelerate the global deployment of SAF.”
Creating Bankable Pathways to Investment
For Flying Forest, the LOI with ATOBA Energy is more than a commercial agreement—it is a critical enabler of project development. Long-term offtake commitments play a decisive role in securing debt and equity financing for SAF facilities, which often involve substantial upfront capital expenditure.
By partnering with an aggregator rather than relying on a limited number of direct airline contracts, Flying Forest can reduce counterparty risk while benefiting from broader market exposure. This structure also allows the company to focus on what it does best: developing, constructing, and operating advanced renewable fuel facilities.
ATOBA Energy, in turn, strengthens its value proposition to airline customers by expanding the range of SAF technologies, geographies, and feedstocks within its portfolio.
“Flying Forest’s leading-edge technology enables a cost-efficient transformation of forestry residues into sustainable aviation fuel,” said Arnaud Namer, Chief Executive Officer of ATOBA Energy. “By adding Flying Forest to our aggregation platform, we can offer airlines greater price competitiveness and stability while providing Flying Forest with the long-term commitments required to reach final investment decision.”
Supporting Airline Decarbonization Strategies
Airlines worldwide are under increasing pressure from regulators, investors, and passengers to reduce their carbon footprint. SAF is widely recognized as the most immediate and scalable solution for cutting aviation emissions without requiring changes to aircraft fleets or airport infrastructure.
However, access to sufficient SAF volumes remains a key challenge. Aggregation models like ATOBA’s help airlines secure supply without bearing the full risk of individual production projects, enabling them to meet regulatory mandates and voluntary sustainability targets more efficiently.
As SAF blending mandates expand across Europe and other regions, partnerships like the one between ATOBA Energy and Flying Forest are expected to become increasingly common, forming the backbone of a more mature and resilient SAF market.
Building a Scalable Model for the Future
Beyond the immediate Iisalmi project, the collaboration between ATOBA Energy and Flying Forest reflects a broader shift in how sustainable fuels are brought to market. Rather than relying solely on bilateral agreements, the industry is moving toward platform-based models that emphasize scale, diversification, and long-term stability.
For Flying Forest, success in Finland could pave the way for replication in other forestry-rich regions. For ATOBA Energy, continued expansion of its producer network enhances its ability to serve airlines globally, supporting the sector’s long-term decarbonization goals.
As the aviation industry accelerates its transition toward cleaner energy, partnerships that align technology innovation, feedstock sustainability, and commercial viability will be essential. The LOI signed by ATOBA Energy and Flying Forest represents a meaningful step in that direction—one that underscores the growing maturity of the SAF ecosystem and its critical role in shaping the future of flight.
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