Shell quits Swedish e-SAF plant plan

: E-fuels, Hydrogen
24/07/05

Shell has exited a planned renewable hydrogen-based sustainable aviation fuel (e-SAF) project in Sweden, and it and utility Vattenfall will not take up an €80.2mn ($87mn) EU Innovation Fund grant.

"Vattenfall and Shell have agreed to pause their collaboration" on the HySkies project that they launched in 2021, the Swedish firm said. It had said in February there was "a different belief in timelines for the project to be realised" and that the companies had "agreed to open up the collaboration for potential other partners to join Vattenfall."

The company reiterated this today, noting it is still reviewing the project and is seeking other partners. Shell sees "a future" in HySkies, "including opportunities for future potential collaborations". It recently paused construction of a biofuels plant in Rotterdam, and said today it expects to write down up to $1bn against that project.

The Swedish collaboration initially also involved US biojet producer Lanzatech, but Vattenfall did not specify whether the firm remains part of the plans.

The companies "have requested for a termination of the grant agreement for financial support via the EU Innovation Fund," Vattenfall said today. The companies are "considering it is infeasible for the project to succeed within the framework of that agreement and [are] aiming to free up funds for others to use in their ambitions to decarbonise," Vattenfall said.

HySkies was selected for the grant in January 2023. The project in Sweden's eastern Forsmark region was envisaged to produce around 82,000 t/yr of e-SAF and 9,000 t/yr of renewable diesel, using hydrogen from a 200MW electrolysis plant, biogenic CO2 captured from a waste-to-energy plant and sustainable ethanol. It was slated to start operations in March 2027 and required capital costs were estimated at close to €780mn.

E-SAF has been touted by some as one of the most promising commercial opportunities for hydrogen derivatives, primarily because of clear EU mandates that will oblige its use from 2030.

Vattenfall said it might pursue different options in the Forsmark region as well, noting "the full potential" for decarbonising heavy industry in the area is "under review".

HySkies is not the first project for which developers have returned EU Innovation Fund grants. German utility Uniper said earlier this year it had to hand back a grant awarded last year after its plans got delayed because it could not secure a power purchase agreement from a wind power developer.

By Stefan Krumpelmann

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25/05/19

Infinium takes FID on 100MW Texas e-fuels plant

London, 19 May (Argus) — US project developer Infinium has taken a final investment decision (FID) on an e-fuels production plant in Texas, and has selected compatriot Electric Hydrogen to provide 100MW of proton exchange membrane (PEM) electrolyser capacity. Construction of Project Roadrunner, at Pecos, west Texas is underway, with commercial production due to start in 2027, Infinium said. The facility will make 23,000 t/yr of synthetic aviation fuels (e-SAF) and other e-fuels, specifically e-diesel for trucking and maritime industries and e-naphtha. This will make it the largest e-fuels facility in the world, Infinium said. Supply will be sold domestically and exported to international markets, it said. Infinium last year struck a 10-year offtake deal with UK-based International Airlines Group (IAG) for delivery of 75,000t of e-SAF to any of the group's airlines: Aer Lingus, BA, Iberia, Level and Vueling. The UK will introduce mandatory e-SAF quotas for the aviation sector from 2028, with the EU to follow suit in 2030. The 7,500 t/yr deal with IAG would cover roughly one-third of Project Roadrunner's expected output. Infinium also has a supply agreement with American Airlines, the developer said. Project Roadrunner will be fed with 150MW of wind power generation capacity from a subsidiary of Florida-headquartered NextEra Energy Resources, via a long-term power purchase agreement. Infinium said Electric Hydrogen's integrated 100MW PEM plant "will not only produce hydrogen for the e-SAF facility but will also have capacity to support future hydrogen offtake opportunities." Canadian asset management Brookfield in 2024 agreed to invest $200mn in Infinium, and specifically Project Roadrunner, in the short term, with potential further investments of $850mn for future projects. Project Roadrunner previously received conditional funding commitment of $75mn from the Bill Gates-founded Breakthrough Energy Catalyst. Infinium has not specified whether it intends to avail itself of the 45V hydrogen production tax credits, which could yield up to $3/kg of hydrogen. Start of construction would leave this possibility open even if a bill proposed by Republicans in the US House of Representatives goes through. The proposed bill foresees that tax credits would only be available for projects that start construction before the start of 2026. By Alexandra Luca Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU, UK to ‘work towards’ linking carbon markets

25/05/19

EU, UK to ‘work towards’ linking carbon markets

London, 19 May (Argus) — The EU and UK agreed to work towards linking their respective emissions trading systems (ETS), as part of their common understanding agreement concluded at a summit in London today. "The European Commission and the United Kingdom share the view that a functioning link between carbon markets would address many of the issues raised in respect of trade and a level playing field," the agreement states. A linking agreement should exempt both jurisdictions from their respective carbon border adjustment mechanisms, according to the common understanding, and the linked systems should cover power and industrial heat generation, and domestic and international maritime and aviation emissions. The statement specifically states that any link "should not constrain the European Union and the United Kingdom from pursuing higher environmental ambition". It also underlines that the UK ETS's supply cap and its emissions reduction pathway are "guided by" the country's Climate Change Act and nationally determined contributions to the Paris climate agreement, and that these should be "at least as ambitious" as the EU's. The UK has legally binding targets to cut its greenhouse gas (GHG) emissions by at least 68pc by 2030 and 81pc by 2035, both compared with 1990 levels. The EU aims to cut its net GHG emissions by 55pc by 2030, and is yet to set a 2035 target. Both jurisdictions are targeting net zero emissions by 2050, while they share the "same interests" in addressing climate change, commission president Ursula von der Leyen said today. Linking the systems would "save British businesses £800mn in EU carbon taxes", UK prime minister Keir Starmer said today, without specifying a timeframe for the savings. A study commissioned by a range of utilities and published last week found that linking the two systems would save up to €1.2bn on lower hedging costs resulting from improved market liquidity and lower bid-offer spreads. Today's agreement provides no timeline for linking the systems. The process to negotiate and link the Swiss ETS to the EU's scheme took almost 10 years. Alongside plans to work towards linking the EU and UK ETS, the jurisdictions also alluded in the agreement to continuing "technical regulatory exchanges" on energy technologies including hydrogen, carbon capture and storage and biomethane. And they will "explore in detail the necessary parameters" for the UK's potential participation in the EU's internal power market. By Victoria Hatherick and Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK establishes public energy company

25/05/15

UK establishes public energy company

London, 15 May (Argus) — The UK parliament has passed a bill establishing a publicly owned energy company, Great British Energy (GBE), to support the nation's renewable energy ambitions. The company, funded with £8.3bn ($11.02bn) over the current parliamentary term, aims to accelerate renewable energy projects, enhance energy security, and support job creation, the department for energy security and net zero (Desnz) announced on Thursday. GBE will invest in clean energy initiatives, including technologies such as floating offshore wind, and collaborate with private companies to expand renewable energy capacity. The government states the company will help stabilise energy costs by reducing reliance on fossil fuels. The bill includes £200mn for renewable energy projects, such as rooftop solar for schools, hospitals, and communities. It has also committed £300mn to develop the UK's offshore wind supply chain, supporting manufacturing of components such as cables and platforms. The legislation received approval from the devolved governments of Scotland, Wales, and Northern Ireland, enabling GBE to operate across the UK. Desnz secretary of state Ed Miliband is expected to outline GBE's strategic priorities "soon", specifying technology focus areas and investment criteria. The government sees GBE as a key part of its plan to transition to clean energy and stimulate economic growth through a "modern industrial strategy", it said. Industry body Energy UK welcomed the bill's passage. "[GBE] can play a vital role in making the government's clean energy ambitions a reality by attracting extra private sector investment," chief executive Dhara Vyas said. By Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

France consults on expanded biofuels mandate

25/05/15

France consults on expanded biofuels mandate

London, 15 May (Argus) — France has opened consultation on the transposition of part of the recast renewable energy directive (RED III) into national law, which would replace the current system with a new one called "incentive for the reduction of the carbon intensity of fuels" (IRICC). The proposal introduces two separate sets of requirements for transport fuels. The first is for greenhouse gas (GHG) emissions reductions, broken down by transport sectors — road, aviation, maritime, LPG and natural gas for vehicles, which could be CNG or LNG (see table). In the current draft, the GHG reduction target for the road sector will start at 5.9pc in 2026, rising to 10.6pc in 2030 and 18.7pc in 2035. For aviation, the target starts at 2.5pc in 2026, rising to 5.8pc in 2030 and 18.8pc in 2035. The GHG mandate levels include a gradual phasing-in of new fuel sectors – river and maritime fuels, fuel gasses, and aviation. To meet the overall RED III target of 14.5pc emissions reduction by 2030, the national French target includes the biofuels mandates, a share for rail transport, and a share or private vehicle charging. The second set of requirements is a renewable fuel requirement by energy content, which is broken down by fuel type — diesel, gasoline, LPG and natural gas fuels and marine fuel (see table). The blending requirements for diesel start at 9pc in 2026, rising to 11.4pc in 2030 and 16pc in 2035. For gasoline, the mandates start at 9.5pc in 2026, rising to 10.5pc in 2030 and 14.5pc in 2035. Finally, the proposal includes a set of sub-mandates for advanced fuels and renewable hydrogen . The advanced biofuels mandate would start at 0.7pc in 2026, rising to 1.95pc in 2030 and 2.6pc in 2035. Users of renewable fuels of non-biological origin (RFNBOs) would not be subject to the advanced sub-mandate. In feedstock restrictions, the crop cap will rise to 7pc from 6.2pc in 2030 and 2035, while the limit for fuels made from feedstocks found in Annex IX-B of RED will be at 0.6pc in 2026, 0.7pc in 2030 and 1pc in 2035 for diesel and petrol. Aviation fuel will not have a IX-B cap until 2030, and from then it will be 6pc. Mandate compliance would be managed by a certificate system through the CarbuRe registry, with a compliance deadline of 1 March the following year. Public electric vehicle charging would also generate tickets, although the amount of tickets generated by charging light passenger vehicles would be reduced from 2031 to reach 50pc in 2035. Renewable hydrogen used in transport would also generate tickets counting towards the hydrogen sub-quota and reduce the overall GHG savings requirement. Public charging stations will start generating fewer tickets for electric passenger vehicles from 2031 to 50pc by 2035. France is also considering steep penalties for non-compliance, at €700/t CO2 not avoided for the GHG reduction requirement and at €40/GJ for the fuel targets. The penalty for not meeting hydrogen and advanced fuel sub-targets would be doubled, at €80/GJ. The consultation is open for comments until 10 June. By Simone Burgin Proposed GHG reduction by transport sector % 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Road and non-road diesel 5.9 7.1 8.3 9.5 10.6 13.2 14.8 16.2 17.5 18.7 Aviation 2.5 3.3 4.1 4.9 5.8 8.4 10.8 13.3 15.9 18.7 RFNBO sub-target (% en.) 0.0 0.0 0.0 0.0 1.2 1.2 2.0 2.0 2.0 5.0 Maritime 2.5 3.25 4.0 5.0 6.0 7.0 8.0 10.0 12.0 14.5 RFNBO sub-target (% en.) 0.0 0.0 0.0 0.0 1.2 1.2 1.2 1.2 2.0 2.0 LPG and natural gas fuels 0.0 0.0 2.7 6.3 10.6 13.2 14.8 16.2 17.5 18.7 DGEC Proposed energy content mandate by fuel type % (en.) 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Diesel 9.0 9.5 10.1 10.7 11.4 12.2 13.0 13.8 14.9 16.0 Petrol 9.5 9.7 10.0 10.2 10.5 11.1 11.8 12.6 13.4 14.5 Natural gas fuels 0.0 0.0 3.0 7.0 12.0 15.0 16.0 18.0 19.0 21.0 LPG 0.0 0.0 3.0 7.0 12.0 15.0 16.0 18.0 19.0 21.0 Marine fuel 2.9 3.8 4.7 5.9 7.1 8.2 9.4 11.8 14.1 17.1 DGEC Proposed caps and sub-targets % (en.) 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Feedstock caps Crop feedstocks 6.2 6.4 6.6 6.8 7.0 7.0 7.0 7.0 7.0 7.0 Annex IX-B feedstocks* 0.6 0.6 0.65 0.7 0.7 0.75 0.8 0.85 0.9 1.0 Cat. 3 tallow 0.5 0.6 0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.7 Tall oil 0.1 0.1 0.1 0.1 0.15 0.15 0.15 0.15 0.15 0.2 Fuel sub-targets Advanced feedstocks 0.7 0.95 1.25 1.6 1.95 2.0 2.1 2.25 2.4 2.6 RFNBOs/Renewable hydrogen 0.05 0.2 0.5 1.0 1.5 1.6 1.7 1.8 1.9 2.0 *For diesel and petrol Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

France mulls 1.5pc renewable H2 target for transport

25/05/13

France mulls 1.5pc renewable H2 target for transport

Paris, 13 May (Argus) — France has opened a consultation on a proposed 1.5pc renewable hydrogen quota for the transport sector by 2030, and hefty penalties to back this up. The country's ecological transition ministry has proposed a mechanism for reducing emissions in the transport sector called IRICC. This would replace the existing Tiruert system and would, among other measures, introduce specific quotas for use of renewable and low-carbon hydrogen. The proposed regulations set specific quotas for greenhouse gas (GHG) emissions reductions that fuel suppliers would have to meet across different transport sectors in 2026-35. In line with requirements of the EU's renewable energy directive (REDIII), it also sets specific sub-quotas for renewable fuels of non-biological origin (RFNBOs), which are effectively renewable hydrogen or derivatives. These would start at 0.1pc in 2026 and rise steadily to 1.5pc by 2030 and to 2pc by 2035. This does not factor in double-counting, which the EU rules allow, meaning the quotas should reflect the actual share of RFNBO supply delivered to the transport sector. France's target exceeds the minimum 1pc requirement under EU rules, which effectively constitute a minimum share of only 0.5pc when factoring in the possibility for double-counting. Some EU members have set more ambitious targets. Finland is aiming for a 4pc quota by 2030 . But others, like Denmark, are planning a less ambitious implementation of EU rules, which has drawn the ire of domestic hydrogen industry participants . France's proposed quota is not set in stone as it is seeking feedback on whether a 0.8pc quota would be preferable. The consultation text does not specify if Paris would allow renewable hydrogen used to make transport fuels in refineries to be counted towards the targets with or without a so-called correction factor. The document foresees specific targets for use of synthetic fuels "produced with low-carbon electricity" in the aviation and maritime sectors. For aviation these would be 1.2pc for 2030, 2pc for 2032 and 5pc for 2035 — broadly in line with mandates from the EU's ReFuelEU Aviation legislation. Crucially, these mandates can be fulfilled with renewable supply and with aviation fuels made with nuclear power. Unlike for other EU targets, the ReFuelEU Aviation rules provide this option, leaving France in a promising position to become a major producer of synthetic aviation fuels thanks to its large nuclear fleet. The EU has not yet set binding targets for synthetic fuels in the maritime sector, but the French proposal foresees quotas of 1.2pc for 2030 and 2pc for 2034. The new mechanism will arguably allow for trading of GHG emissions reduction and fuel supply credits, similar to Tiruert, although the consultation document does not detail this specifically. Hefty penalties Hefty penalties for non-compliance could ensure that obliged parties meet their quotas. The ministry is proposing a penalty of €80 ($89) for each GJ that fuel suppliers fall short of their RFNBO quotas. This would equate to around €9.60/kg, based on hydrogen's lower heating value of 120 MJ/kg. It is broadly in line with penalties set by the Czech Republic , but considerably higher than those in Finland. Crucially, the penalties would be in addition to potential fines for falling short of the larger GHG emissions reduction targets. Companies could additionally incur penalties of €700/tonne of CO2 they fail to avoid short of their requirements. Stakeholders can respond to the consultation until 10 June. By Stefan Krumpelmann and Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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