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(Kitco News) Tightening jet fuel supply and rising geopolitical risk are exposing a weak point in global aviation, where large-scale alternatives to fossil fuels remain limited, according to Syntholene Energy CEO Dan Sutton.
Speaking with Kitco Mining on April 27, 2026, Sutton said the sector remains heavily tied to conventional fuel supply chains. He described aviation’s dependence on fossil-based inputs as “100% exposed,” adding that “aviation fuel is often the canary in the coal mine when it comes to supply chain constraints, conflict or complexity.”
The problem is not limited to airlines. Marine shipping and rail face similar limits because they also rely on high-energy-density liquid fuels that remain difficult to replace at scale.
“There really is no alternative,” Sutton said, pointing to the limits of current technologies for long-distance transport.
Biofuels have been one route, but Sutton said they run into feedstock and cost constraints. Synthetic fuels offer another path, though high energy requirements have slowed broader adoption.
“The energy sources that are used to make this fuel, you require a huge amount of energy,” Sutton said, noting that production costs have historically been linked to intermittent renewable power.
Syntholene is trying to address that cost issue through geothermal integration at its Iceland project, where both electricity and heat are used in production. Sutton said the approach could reduce hydrogen costs by about 70%, a level that may support cost competitiveness if demonstrated at scale. The resulting fuel is designed to work with existing aircraft and fuel infrastructure.
The company is constructing a demonstration facility, with delivery targeted for late 2026. Sutton said early demand is emerging, including an expression of interest from Icelandair for approximately 250 million liters of fuel over a decade.
“Everybody is looking for more of this fuel,” he said.
Sutton said recent geopolitical developments have highlighted how exposed fuel supply chains are to disruption, with potential implications for pricing and availability. Production anchored in stable jurisdictions could reduce that exposure, though scaling such systems will still require capital and execution.
In an April 24, 2026, press release, Syntholene said it had secured Depository Trust Company eligibility for its shares, enabling electronic clearing and settlement in the United States.
Execution remains a key variable. Sutton said moving from demonstration to commercial scale will depend on managing engineering and operational complexity as projects increase in size.
Fuel markets are tightening. Demand is not going away. How quickly alternatives can be developed may help determine how aviation manages long-term supply risk.
Watch the full video on the Kitco Mining YouTube channel.
This article/video was produced with support from a Kitco sponsor. The views expressed in this content do not necessarily reflect the views of Kitco Metals Inc. Kitco does not endorse or recommend any company, security, investment product, or investment strategy. This content is for informational purposes only and should not be considered investment advice.
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