Syntholene Energy Corp. Announces Completion of Conceptual Design Report and Technoeconomic Analysis

Report Validates Pathway to Industrial Scale Synthetic Fuel Production Targeting Cost Competitiveness with Fossil Fuels

Syntholene Energy Corp. (TSXV: ESAF,OTC:SYNTF) (OTCQB: SYNTF) ("Syntholene" or the "Company") announces the completion of its Conceptual Design Report ("CDR") and integrated Technoeconomic Analysis for its planned geothermal-integrated Effects Test Demonstration Facility.

The report details the world's first integration of high-enthalpy geothermal heat coupled to Solid Oxide Electrolyzer Cells ("SOECs") to produce low-cost and low-emissions hydrogen, the key feedstock to the Company's target synthetic hydrocarbon fuel (eFuel) end products.

"This CDR validates 20 years' worth of work on thermally-integrated high temperature electrolysis, aspiring to produce energy-dense, high-purity synthetic fuel," said John Kutsch, Chief Engineer of Syntholene. "The CDR provides the justification for advancing to the next step in commercializing high-temperature electrolysis at scale: the deployment of an Effects Test in unforgiving real-world environments, using abundant geothermal steam as a low-cost and scalable industrial heat source."

The Effects Test is designed to operate sufficiently to validate the physical and operational feasibility of geothermal-to-SOEC thermal coupling under real-world field conditions. Once the Effect Test is completed, the Company plans to combine the data resulting from the Effects Test with the testing data from over 10,000 hours of historic operations from the company's SOEC vendor, Dynelectro ApS.

The cost of hydrogen remains the single most critical determinant of the commercial viability of synthetic aviation fuel ("eSAF"). Current green hydrogen production costs of approximately US$4-6/kg (Curcio) are likely to render power-to-liquid eSAF pathways economically uncompetitive with fossil-derived jet fuel. Syntholene's conceptual design targets a scalable pathway to hydrogen production below US$2/kg, with a long-term objective of achieving sub-US$1/kg through thermal integration.

Technical Differentiation

Conventional low-temperature electrolysis typically consumes approximately 65 kWh/kg H₂ and delivers 60-70% electrical efficiency (Berrada et al). In contrast, high-temperature steam electrolysis ("HTSE") using SOEC technology can reduce energy demand to as low as 37 kWh/kg H₂. When externally supplied with process heat, SOEC systems can achieve electrical-to-hydrogen conversion efficiencies of 85-90% (Wendt et al).

The Company's Effects Test is designed to validate:

Novel direct thermal coupling of heat from a geothermal well to an SOEC module without intermediary boilers.
Stable hydrogen production under dynamic geothermal temperature and pressure conditions.
Startup, shutdown, and perturbation response of the integrated system.
Commercial-grade hydrogen flow rate and outlet purity performance.

Syntholene's provisionally-patented Thermal Coupling System is designed to deliver industrial-grade steam at ~150°C, aligned with commercial SOEC inlet requirements. Inputs consist of air, geothermal fluid, and locally sourced water.

"This conceptual design report presents the most detailed current design of Syntholene's demonstration plant in Iceland," said Jack Williams, Head Engineer. "It details the scientific reasoning behind the engineering designs, in addition to summarising procurement strategy and unit economic analysis. Ultimately it demonstrates our capability to deliver novel production efficiency through our Thermal Hybrid Production Process, which we are excited to demonstrate to the world."

Technoeconomic Validation

The integration design has been validated using a digital twin constructed in Aspen Plus, incorporating mass and energy balances, temperature-flow-pressure sensitivity analysis, and control logic simulation.

The technoeconomic analysis indicates that, if successfully scaled, the thermally-integrated configuration could materially reduce hydrogen production costs relative to current market benchmarks, with modeled pathways to sub-US$2/kg and further optimization and economies of scale toward sub-US$1/kg. There is no guarantee that the targeted cost optimization will be achieved, and actual results could differ from Syntholene's projections.

Strategic Implications

The completion of the Conceptual Design Report marks a key technical milestone in Syntholene's development roadmap. The Effects Test is intended to empirically validate a new class of thermally integrated eSAF production facilities, leveraging geothermal heat as a structural cost advantage in hydrogen production.

Further updates will be provided as engineering progresses toward field deployment in 2026.

Construction Progress

The Company continues to advance progress towards the build out of a geothermal-integrated Effects Test Demonstration Facility in Iceland where the Effects Test is planned to be carried out in due course. To date, the Company has engaged a project management firm, advanced discussions with a general contractor candidate, identified a Demonstration Facility site in Iceland, commenced lease negotiations, submitted permitting applications, and commenced off-site construction and assembly of component parts for the Demonstration Facility, including the select heat exchanger system and SOEC Modules.

The component parts are under construction and assembly at the Company's offices in Harvard, IL and at service provider facilities in Copenhagen and Los Angeles. These components are modular, and are engineered to be transported to the Iceland Demonstration Facility site when ready. The Company believes that once the necessary permits, lease, and other requirements are in place at the proposed Iceland site, that the modular components parts which are already underway, can be integrated efficiently.

The Company is aiming to complete the construction of the proposed Effects Test Demonstration facility in Iceland in Q4 2026, after which time the Effect Test would be initiated. The Company is working with the project manager and other professionals to finalize the Demonstration Facility construction budget and believes that based on current estimates the Company has sufficient funds to make significant progress towards assembly of core components and site preparation. The actual project financing requirements and the Company's future financial position may vary from the current estimates, and the Company may require additional funding to complete the construction of the Demonstration Facility and operation of the Effects Test.

Achievement of Business Milestones and Deferred Consideration Shares

As disclosed in Syntholene's Listing Statement dated November 30, 2025 (the "Listing Statement"), pursuant to the terms of the Securities Exchange Agreement dated April 25, 2025, as amended and restated on May 1, 2025, and further amended on June 25, 2025 (the "Securities Exchange Agreement"), Syntholene is required to issue up to an aggregate of 10,750,000 common shares as deferred consideration shares to the former holders of Syntholene Energy Corp. (Delaware) which was acquired in the reverse takeover transaction, upon the achievement of certain business milestones.

The first business milestone, being completion and delivery of the CDR and the corresponding digital twin for the Effects Test has been achieved, and an aggregate of 1,397,500 deferred consideration shares are required to be issued on December 10, 2026.

Upon achievement of the second business milestone, being completion of a 1,000-hour effects test on or before December 10, 2028, Syntholene will be required to issue an aggregate of 5,052,500 deferred consideration shares on the later of December 10, 2026, and the date that is ten days from achievement of this milestone.

Finally, upon achievement of the third business milestone, being the award of one or more non-dilutive grants for aggregate gross proceeds of not less than $20,000,000 on or before December 10, 2028, Syntholene will be required to issue an aggregate of 4,300,000 deferred consideration shares on the later of December 10, 2026 and the date that is ten days from achievement of this milestone.

The deferred consideration shares will be subject to certain resale and escrow restrictions pursuant to applicable securities laws and stock exchange policies. Please refer to the Listing Statement and Securities Exchange Agreement, copies of which are available on SEDAR+ under Syntholene's profile, for additional details regarding the deferred consideration shares and business milestones.

About Syntholene

Syntholene is actively commercializing its novel Hybrid Thermal Production System for low-cost clean fuel synthesis. The target output is ultrapure synthetic jet fuel, manufactured at 70% lower cost than the nearest competing technology today. The company's mission is to deliver the world's first high-performance, low-cost, and carbon-neutral synthetic fuel at an industrial scale, unlocking the potential to produce clean synthetic fuel at lower cost than fossil fuels.

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 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.

For further information, please contact:
Dan Sutton, CEO
comms@syntholene.com
www.syntholene.com
+1 608-305-4835

X: @Syntholene
Linkedin: Syntholene Energy
Youtube: Syntholene Energy

Investor Relations
KIN Communications Inc.
604-684-6730
ESAF@kincommunications.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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 build out of the Demonstration Facility, plans for assembly of component parts and advancement of construction of the Demonstration Facility, the Effect Test, the anticipated results and strategic implications of the Effects Test, the timing for deployment of the Effects Test, successful implementation of the test facility and the timing for completion, commercial scalability, economic benefits of the Company's products relative to competitive products; protection of the Company's intellectual property through provisional patents and patents; the Company's ability to execute on its plans for advancement and commercialization of its technology; technical and economic viability, anticipated geothermal power availability, anticipated benefit of eFuel, 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, including without limitation the assumption that the Company will be able to execute its business plan in the manner and timeline set forth in its public disclosure or at all, that the eFuel will have its expected benefits, that there will be market adoption, that the Company's review of the competitive landscape and that its understanding of being the world's first Company to have geothermal-SOEC integration remain accurate, that any potential competitors to the Company would not be able to develop or execute geothermal-SOEC integration as quickly or as well as the Company, that the Company will be able to produce the eFuel at competitive pricing in the range anticipated in this news release or at all, that the Effects Test and other validation testing will be able to be completed, and that the results from such tests will validate the Company's technology and support further commercialization, that geothermal heat will be available to the Company at the necessary levels, that the Iceland testing facility will be completed on time and on budget, that the Company will continue to have access to skilled personnel with relevant experience, that regulatory requirements remain favourable for the Company, and that the Company will be able to access financing as needed to fund its business plan. 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 complete the Effects Test within the estimated timeline, that the results of the Effects Test will support continued commercialization and the Company's technology, that there are competitors in geothermal-SOEC integration that are unknown to the Company, that the Company may not be able to produce eFuel at the targeted prices or at a price that is lower than potential competitors, that definitive commercial purchase orders for Syntholene's eFuel may not materialize, 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.

This news release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about the cost and pricing of the eFuel product that Syntholene is seeking to commercialize, which is subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of describing the anticipated effects of advancement of Syntholene's business operations. Syntholene's actual results, performance or achievement could differ materially from those expressed in, or implied by, such FOFI. Syntholene disclaims any intention or obligation to update or revise any FOFI contained in this news release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained herein should not be used for purposes other than for which it is disclosed herein.

Readers are advised to exercise caution and not to place undue reliance on the forward-looking statements and FOFI in this news release.

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Syntholene Energy

Advancing high-performance synthetic fuels at scale

Advancing high-performance synthetic fuels at scale Keep Reading...

Investor Insight

Syntholene Energy is advancing a proprietary synthetic fuel production platform designed to produce high-performance, low-cost synthetic hydrocarbons using renewable electricity, geothermal heat and captured carbon. Following successful prototype-scale validation in 2022, the company is now operating its Iceland demonstration facility as it plans commercial-scale production capable of serving aviation, transportation, industrial energy and other hard-to-abate fuel markets.

Overview

Syntholene Energy ((TSXV:ESAF,FSE:3DD0, OTC:SYNTF) is a synthetic fuel production company company focused on developing high-performance, low-cost synthetic liquid fuels. The company is commercializing its proprietary Hybrid Thermal Production System, which combines renewable electricity, geothermal heat, water and captured carbon to produce synthetic hydrocarbons that can serve as direct replacements for conventional petroleum-derived fuels.

$Syntholene's \u200bH\u00fasav\u00edk Power Station$

Unlike many alternative energy solutions that require extensive changes to existing infrastructure, synthetic fuels can be transported, stored and utilized through today’s fuel supply chains. The resulting fuels are molecularly pure, free from many contaminants associated with conventional fuels and compatible with existing engines, turbines, storage systems and transportation infrastructure. Produced using renewable electricity, hydrogen and captured carbon, the fuels can deliver over 90 percent lower lifecycle emissions while maintaining the energy density and performance characteristics required across multiple industries.

At the core of the company’s platform is its Hybrid Thermal Production System, which combines high-temperature solid oxide electrolysis with industrially proven fuel synthesis reactors. By incorporating low-cost thermal energy into critical production stages, Syntholene seeks to reduce electricity consumption, the largest cost component for most eFuel producers. This approach underpins the company’s targeted 70 percent cost advantage relative to competing technologies and supports its objective of producing cost-competitive synthetic fuels at commercial scale.

Syntholene Hybrid Thermal Production System

The technology builds upon advancements in high-temperature electrolysis, including work undertaken at Idaho National Laboratory. Following successful prototype-scale validation in 2022, Syntholene is progressing toward field-scale demonstration in Iceland. The company believes a successful demonstration will support future commercial deployment across a range of synthetic fuel applications.

Market demand for low-emission liquid fuels continues to expand across multiple sectors. Sustainable aviation fuel represents Syntholene’s initial commercial focus, supported by increasing airline decarbonization commitments, regulatory mandates, and fuel-blending requirements. Beyond aviation, the broader global eFuel market is projected to grow from US$8.89 billion in 2024 to more than US$215 billion by 2032, creating opportunities across transportation, shipping, industrial energy, and other sectors that depend on liquid hydrocarbon fuels.

Syntholene’s leadership team combines expertise across climate technology, synthetic fuels, industrial engineering, energy infrastructure, project development and resource industries. Recent additions to the advisory board, including former Shell and Suncor executive Marc Mageau and energy industry veteran HY Lee, further strengthen the company’s capabilities as it advances toward commercialization.

Company Highlights

Addressing a multi-layered growth opportunity: The company is initially targeting sustainable aviation fuel while developing a technology platform capable of serving a substantially larger global liquid fuels market spanning transportation, industrial energy and other hard-to-electrify sectors.
Proprietary hybrid thermal production system: Syntholene’s technology integrates high-temperature solid oxide electrolysis with industrially proven fuel synthesis reactors, utilizing both electricity and thermal energy to improve efficiency and reduce production costs.
Targeting a 70 percent cost advantage: By introducing low-cost thermal energy into critical stages of production, the company aims to produce synthetic fuels at 70 percent lower cost than competing eFuel technologies.
Pathway to cost-competitive synthetic fuels: The company believes its technology provides a credible pathway toward producing synthetic fuels that can compete economically with conventional petroleum-derived fuels at scale.
High-performance fuel characteristics: Synthetic fuels are molecularly pure and free from many contaminants associated with conventional fuels, including sulfur, nitrogen and heavy metals, while remaining compatible with existing infrastructure.
Over 90 percent lower lifecycle emissions: Synthetic fuels produced from renewable electricity, hydrogen and captured carbon can deliver over 90 percent lower lifecycle emissions than conventional alternatives.
Prototype validation completed: The company’s production process was successfully demonstrated at prototype scale in 2022 and is now operating a world-first geothermally-integrated demonstration facility in Husavik, Iceland.
Demonstration facility advancing ahead of schedule: The Húsavík, Iceland facility is now operating, with efficiency and technoeconomic results expected in Q4 2026.
Strategic geothermal platform: The Iceland project benefits from low-cost geothermal electricity, thermal energy, industrial infrastructure, deep-water port access and an existing 200 MW+ regional grid expansion permitting framework.
Scalable commercial development strategy: Following demonstration, the company intends to advance a 20,000-tonne-per-year commercial facility design and subsequently scale production through facilities ranging from tens to hundreds of megawatts.

Flagship Project

Húsavík Demonstration Facility, Iceland

$Syntholene \u200bH\u00fasav\u00edk Demonstration Facility, Iceland$

Syntholene’s flagship project is its geothermal-integrated demonstration facility located in Húsavík, northern Iceland. The facility is designed to validate the integration of geothermal heat, high-temperature solid oxide electrolysis and synthetic fuel production technologies under real-world operating conditions. Construction has advanced six months ahead of schedule, with first operations initiated on June 22nd 20266 and efficiency and technoeconomic results expected in Q4 2026.

The project leverages northern Iceland’s abundant geothermal resources, providing access to both low-cost electricity and high-temperature steam. Unlike intermittent renewable energy sources, geothermal energy offers reliable baseload power and thermal energy that can be utilized continuously throughout the fuel production process. The location also benefits from established industrial infrastructure, a skilled workforce, proximity to a deep-water port and a favorable regulatory environment.

Syntholene Demo Footprint

A key objective of the demonstration facility is to validate the company’s thermal integration strategy and confirm that efficiencies achieved during laboratory and prototype testing can be replicated under commercial operating conditions. The facility incorporates Syntholene’s proprietary Thermal Coupling technology, which converts geothermal steam into high-purity industrial steam suitable for use throughout the fuel production process. Management believes this technology is central to achieving the targeted 70 percent cost advantage relative to competing synthetic fuel pathways.

The project also benefits from significant expansion potential. Iceland has completed environmental permitting associated with a 200 MW regional grid expansion, supporting future industrial development in the region. Following a successful demonstration, Syntholene intends to advance a 20,000-tonne-per-year commercial facility design and subsequently scale production through facilities ranging from tens to hundreds of megawatts. Management believes the Húsavík location alone has the potential to support development capable of generating approximately US$500 million in annual revenue.

Management Team

Dan Sutton – Chief Executive Officer

Dan Sutton has spent the last 15 years founding and leading sustainable infrastructure businesses. As founder and CEO of Tantalus Labs, he designed, built and operated SUNLAB, scaled the company to 150 employees and grew annual revenue to approximately US$20 million. His expertise spans infrastructure deployment, project development, government relations, public markets and executive leadership.

Steve Oldham – Director

Steve Oldham is a globally recognized leader in carbon management and climate technology commercialization. As former CEO of Carbon Engineering, he helped establish direct air capture as a commercial industry and led the company through its acquisition by Occidental Petroleum at a US$1.6 billion valuation. He currently serves as CEO of Captura.

Canon Bryan – Director

Canon Bryan is a founder and company builder with more than 25 years of experience across advanced energy and resource development. He co-founded Terrestrial Energy, Uranium Energy and NioCorp and brings expertise in finance, corporate development, economic modelling and strategic planning.

John Kutsch – Chief Engineer

John Kutsch leads the integration and optimization of Syntholene’s fuel production platform. He brings more than 30 years of experience across industrial systems design, chemical processing, advanced energy technologies and reactor development, including work supporting high-temperature synthetic fuel systems.

Jack Williams – Head Engineer

Jack Williams specializes in high-temperature and high-pressure reactor systems and synthetic fuel technologies. His research at the University of Cambridge focused on electrolysis systems, catalytic reactor design, CO₂ capture and synthetic fuel production processes.

Grant Tanaka – Chief Financial Officer

Grant Tanaka has more than 15 years of senior financial leadership experience across the global natural resources sector. His background includes senior finance roles at Teck Resources, New Gold and Copper Mountain Mining, combining financial discipline with operational performance management. He was also appointed Corporate Secretary in May 2026.

Anna Pagliaro – Director

Anna Pagliaro is a senior commercial and risk management executive with extensive experience across the energy and mining sectors. Her career includes leadership positions at Vizsla Silver, Ausenco, NexGen Energy and Integra Gold, where she focused on governance, commercial strategy, negotiations and risk management.

Marc Mageau – Advisory Board Member

Marc Mageau joined the Advisory Board in June 2026. He brings more than three decades of operational leadership experience from Shell and Suncor, including expertise in refining, oil sands operations, logistics, infrastructure development and industrial asset management.

HY Lee – Advisory Board Member

HY Lee joined the Advisory Board in May 2026, adding further industrial, operational and strategic expertise as Syntholene advances toward commercial deployment of its synthetic fuel platform.

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