Vattenfall and Shell have agreed to terminate their collaboration on the HySkies sustainable aviation fuel (SAF) project taking place in Sweden.
Currently in the feasibility phase, the initiative began in 2021 after Vattenfall, SAS, LanzaTech and Shell signed a Memorandum of Understanding (MOU) to explore the production of SAFs on a large scale in the Forsmark Region.
H2 View understands that Vattenfall will no longer take up a €80.2m ($86.8m) EU Innovation Fund grant for the project. Additionally, LanzaTech stepped away from the project after the initial strategy to use gas fermentation and alcohol-to-jet for the project location shifted to Shell’s Fischer-Tropsch technology in 2023. However, SAS is still expected to be onboard as a potential off-taker.
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