Uniper Halts Development of SkyFuelH2 in Sollefteå

October 21, 2024

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(Bioenergy International) In Sweden, Uniper Sweden, part of Germany-headed international energy major Uniper SE has announced that it has decided to halt the development of the SkyFuelH2 project for the production of sustainable aviation fuel (SAF) in Sollefteå, citing challenging market developments and rising costs.

According to a statement, after careful consideration, Uniper has assessed that the “combination of a challenging market situation, sharply rising costs, and continued uncertain effects of the regulations intended to support increased demand for sustainable aviation fuel (SAF) means the project is no longer commercially sustainable.”

However, the company stresses that the basic idea behind SkyFuelH2 is still important and that the “knowledge and insights that we have gained from the project will form the basis of future opportunities.” READ MORE

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Uniper abandons SkyFuelH2 e-SAF project (SAF Investor)
Uniper scraps Swedish e-SAF project amid 'challenging market,' rising costs (S&P Global)
Uniper and Sasol scrap 200MW green hydrogen-based aviation fuel project in Sweden -- SkyFuelH2 is the second synthetic aviation fuel development in Sweden to admit to headwinds this year (Hydrogen Insight)
Statkraft, Celsa postpone Norway hydrogen project to 2027 (Montel)

Excerpt from SAF Investor: The project had planned to produce enough e-SAF to meet 10% of Sweden’s total aviation fuel demand.

Another partner in the project, Sasol ecoFT, already announced its withdrawal from the project in 2023 citing change in strategy. Sasol was meant to supply the key Fischer-Tropsch technology to produce the e-SAF. Uniper was in talks with other technology companies to replace Sasol’s tech.

“This was a tough decision to make, but it is one rooted in realities,” Uniper Sweden CEO Johan Svenningsson said in a statement. “While SkyFuelH2 will not move forward, our commitment to sustainability and innovation remains strong.”

Uniper’s decision comes amid a growing number of setbacks for the nascent green hydrogen industry. Earlier this year, Orsted and Shell also withdrew from similar projects in Sweden while multiple other developers across Australia and US have also shelved projects.

The H2Global hydrogen derivative import tender for e-SAF in Germany also failed to attract any final bidders, primarily due to limited volume and EU regulations defining green credentials for SAF.

Earlier in July, Green Fuels Hamburg project scrapped SAF project in Hamburg.

Energy supplier Uniper, energy technology firm Siemens Energy and aircraft manufacturer Airbus teamed up with Sasol EcoFT to develop a commercial SAF production plant in 2022. The consortium planned to produce SAF in the city’s industrial region of Billbrook and Rothenburgsort. READ MORE

Excerpt from Montel: Norwegian power producer Statkraft and steel manufacturer Celsa have postponed the construction of a planned hydrogen plant in northern Norway by three years to 2027, Statkraft said on Friday.

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The plant is one of several hydrogen projects across the Nordic region that has been postponed or terminated in recent months, as the market suffers from a lack of offtakers.

Statkraft scaled down its hydrogen ambitions earlier this year, from 2 GW by 2030 to 1-2 GW by 2035. READ MORE