Shell pulls out of planned e-SAF project in Sweden

After halting work on Rotterdam biofuel plant and booking a $1bn write down, Shell has also pulled out of e-SAF project planned with state-owned Swedish power utility company Vattenfall.

“Vattenfall and Shell have decided to pause their collaboration in the HySkies electrofuel project while Vattenfall continues the search for new partners,” said Vattenfall in a statement.

The joint project, with the planned capex of €780m ($845m), was launched in 2021 with initial plans to produce 82,000 tonnes of e-SAF and 9,000 tonnes of renewable diesel per annum. The project envisaged the use of hydrogen from 200MW electrolysis plant, biogenic CO2 captured from a waste-to-energy plant and sustainable ethanol as feedstocks at the site.

It was due to begin operations in March of 2027.

On the other hand, the company said that it will also not avail financial support via the EU Innovation Fund, considering it is infeasible for the project to succeed within the framework of that agreement and aiming to free up funds for others to use in their ambitions to decarbonise.

Vattenfall-Shell e-SAF project was awarded €80.2mn ($87mn) grant in January 2023.