Renewable energy firm RES is selling its green hydrogen project in Sweden to a fund managed by Prime Capital with the project set to produce synthetic sustainable aviation fuel (eSAF).
Prime Capital’s Prime Energy Infrastructure Fund II (PGEIF II) will become the sole shareholder of the Alby hydrogen project in the Ånge municipality, with RES expected to “stay involved” and jointly develop the plant.
500MW of renewable energy will be supplied to power electrolysis for hydrogen production. Hydrogen will then be combined with captured CO2 to produce eSAF.
RES originally announced the green hydrogen plant in 2021, with plans to supply local industries with pure green hydrogen. The company also acquired 60 acres of industrial land in Ljungaverk for the project in 2022.
However, citing the EU’s ReFuelEU regulation, RES’ statement said “eSAF is promoted by the EU as key to reducing emissions in the aviation sector in the upcoming years.”
Applying to aircraft operators, EU airports and managing bodies, fuel supplies must blend an increasing level of SAF with kerosene. From January 1, 2025, a minimum 2% SAF blend must be fulfilled.
From 2030 however, as the minimum share of SAF increases to 6%, a minimum share of synthetic aviation fuels (green hydrogen-based) of 0.7% is introduced. These shares increase to 70% and 35% by 2050 respectively.
Matilda Afzelius, CEO of RES in the Nordics, said, “500MW capacity allows for a significant renewable aviation fuel production.”
“The Nordic region is exceptionally well suited for the production of synthetic fuels due to the low cost of electricity, the high share of renewables in the energy mix and the large availability of water,” added Prime Capital’s Managing Director, Dr. Mathias Bimberg.
“With the Alby project, we are acquiring a very attractive site – both in terms of location and commercial conditions – in Sweden, which will enable the development of a large-scale Power-to-X plant in close cooperation with RES.”
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