Syntholene Energy Signs Site Lease and Receives Construction Permit at Historic Húsavík Power Station for Demonstration Facility

TSXV: ESAF | OTCQB: SYNTF | FSE: 3DD0

Overview

Syntholene Energy Corp. announced that it has entered into a Land Lease Agreement with the Municipality of Norðurþing for a 500 square metre site at the historic Húsavík Power Station in Iceland, and that the local planning authority has granted the construction permit required to proceed with on-site preparation and construction activities for the Company’s modular Demonstration Facility.

According to the Company, the lease was signed on April 13, 2026 and runs until April 1, 2027, subject to renewal, at a monthly rent of ISK 200,000 (approximately CAD$2,525). The construction permit was issued on March 17, 2026 and is valid until the end of March 2027.

Key Highlights

• 500 square metre site secured at the Húsavík Power Station under a Land Lease Agreement with the Municipality of Norðurþing.
• Construction permit granted on March 17, 2026, enabling on-site preparation and construction of the Demonstration Facility.
• Lease term runs to April 1, 2027 at a monthly rent of ISK 200,000 (approximately CAD$2,525).
• Facility is planned to support an approximately 1,000-hour effects test program.
• HD ehf. (HD IS) appointed as General Contractor, an Icelandic engineering and construction firm with more than 200 employees specializing in industrial infrastructure, metal engineering, and geothermal turbine maintenance.

Strategic Context

The Company stated that the Húsavík Power Station retains existing infrastructure including heat-exchangers, district-heating systems, water cooling systems, and a 20-kilometre insulated geothermal pipeline. While the site’s 2 MW Kalina power unit ceased electricity production in 2010, Syntholene said that core mechanical systems remain intact, which the Company believes reduces civil works, schedule risk, and capital requirements for its Demonstration Facility.

Syntholene noted that the site draws from the Hveravöllum geothermal field, with the neighbouring Þeistareykir field, currently operating at 90 MW across two 45 MW units, holding environmental clearance for expansion up to 200 MW of total production capacity.

Management Commentary

Katrín Sigurjónsdóttir, Mayor of Norðurþing, said: “Syntholene’s goals align with our municipality’s priorities for sensible geothermal use and cost-effective, environmentally friendly fuel.”

Dan Sutton, Chief Executive Officer of Syntholene, said the lease and permit “represents a transformational step in establishing Syntholene’s Icelandic footprint” and offers “a strategic launch point for our first Demonstration Facility.”

Árni Rafn Gíslason, Chief Executive Officer of HD IS, said: “It is particularly exciting to be part of a project focused on innovation and sustainable energy solutions.”

What to Watch Next

• On-site preparation and construction activities at the Húsavík Power Station under the newly issued construction permit.
• Execution of the approximately 1,000-hour effects test program at the Demonstration Facility.
• Potential renewal of the site lease beyond April 1, 2027.

About Syntholene Energy Corp.

Syntholene actively commercializes a novel production pathway for low-cost clean fuel synthesis, targeting ultrapure synthetic jet fuel at 70% lower cost than competing technologies. Founded by experienced operators in advanced energy infrastructure, nuclear technology, low-emissions steel refining, process engineering, and capital markets, the Company aims to deliver the world’s first scalable modular production platform for cost-competitive synthetic fuel, accelerating carbon-neutral eFuels commercialization globally.

Read the full press release here.

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