Iceland Pledges Fossil Fuel-Free Domestic Flights by 2040 Amidst Global Push for Sustainable Aviation

Iceland Sets Ambitious 2040 Target for Domestic Aviation

Iceland has officially pledged to achieve fossil fuel-free domestic flights by 2040, positioning itself at the forefront of the global movement towards sustainable aviation. This commitment is part of the nation's broader strategy to reach carbon neutrality and complete fossil fuel independence by the same year. The initiative underscores a significant shift in the country's transportation sector, leveraging its abundant renewable energy resources to decarbonize air travel.

The Icelandic Strategy: SAF and Next-Generation Aircraft

The pathway to fossil fuel-free domestic flights in Iceland involves a dual approach: the production and utilization of Sustainable Aviation Fuels (SAF) and the adoption of electric and hydrogen-powered aircraft. Icelandair, the country's flag carrier, has expressed ambitious plans to operate hydrogen- and battery-powered planes on its domestic routes, with some flights potentially commencing as early as 2026. To this end, Icelandair has signed letters of intent with two aviation startups: Heart Aerospace, which is developing a 30-seat electric regional aircraft, and Universal Hydrogen, focused on converting existing Dash 8-200 turboprop planes to hydrogen power. Iceland's relatively small size and short domestic flight routes are considered advantageous for piloting these emerging technologies.

Pioneering Sustainable Aviation Fuel Production

A critical component of Iceland's strategy is the domestic production of e-SAF. Several projects are underway, including a commercial-scale SAF production facility being developed by IðunnH2 in Helguvík Harbour, near Keflavík International Airport. This facility aims to begin production by 2027 or 2028, utilizing Iceland's nearly 100% renewable electricity grid (derived from hydropower, geothermal, and wind power) to produce green hydrogen. This green hydrogen will then be combined with recycled CO2 or biogenic carbon to create e-SAF. Projections indicate that this facility could meet approximately 15% of Iceland's annual jet fuel demand by 2028 or 2029. Notably, Icelandair has already committed to purchasing up to 45,000 tonnes of this e-SAF annually.

Global Context and Challenges Ahead

Iceland's pledge aligns with a broader international push for greener aviation. Other Nordic nations have set similar targets, with Denmark aiming for fossil fuel-free domestic flights by 2030, Finland by 2035, and Germany by 2045. Globally, the International Civil Aviation Organization (ICAO) has established a long-term aspirational goal of achieving net-zero CO2 emissions from international aviation by 2050. While the ambition is high, significant challenges remain. Sustainable Aviation Fuels are currently more expensive than conventional jet fuel, and substantial investments in infrastructure and technological development are necessary to scale up production and adoption. However, Iceland's unique position, with its abundant renewable energy and a clear national strategy, positions it as a potential leader in demonstrating the feasibility of fossil fuel-free domestic air travel.