- Uniper and Sasol have cancelled a 200MW hydrogen-based sustainable aviation fuel project in Sweden.
- The SkyFuelH2 facility was set to use Sasol’s Fischer-Tropsch technology to produce aviation fuel, using forestry residues and green hydrogen as feedstock.
- Uniper says the project is “no longer commercially viable,” naming the war in Ukraine and inflation as contributing elements.
Construction was originally expected to begin next year (2025), with the start of production scheduled for 2028. Uniper’s statement said, “The decision is based on a combination of challenging market conditions and increased costs, which means that the project is not currently considered commercially viable.”
“The basic idea behind SkyFuelH2 is still important. The aviation industry must change, and the demand for more advanced SAF will grow in the future. However, climate and business sustainability must go hand in hand, and each project must stand on its own two feet,” the company added.
In September 2023, the project secured approximately $13m from the Swedish Energy Agency for a feasibility study.
However, by July 2024, it became clear that broader European ambitions were facing significant challenges, as H2 View reported that the EU’s combined target of producing and importing 20 million tonnes of green hydrogen was deemed “unrealistic” and unlikely to be met.
Sasol is one of worlds biggest corporate air polluters.
The Sasol synfuels plant in Secunda, South Africa. The plant is both the largest coal-to-liquids plant and the largest point source of greenhouse gas emissions in the world. As a major exporter to the EU, the carbon border adjustment mechanisms poses significant risk to the company. Image credit: Sasol
Author: Bryan Groenendaal
