Uniper abandons SkyFuelH2 e-SAF project

German energy giant Uniper has abandoned its SkyFuelH2 project to produce eSAF in Sweden, citing rising costs and a challenging market environment, according to media reports.
The company said the project, located in Solleftea, Sweden, was no longer commercially viable due to increased capital costs for green hydrogen projects, supply chain disruptions, and regulatory uncertainty.
“Continued uncertain effects of the regulatory frameworks that are intended to support increased demand for sustainable aviation fuel means that the project is no longer commercially viable,” according to Uniper as reported by media reports.
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.