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.”
The aviation industry needs to change and sustainable jet fuels are one of the keys to making that possible.
Uinper notes that Sollefteå is “one of the best places in Europe” in terms of access to the electricity grid, fossil-free electricity, biomass, and rail logistics.
However, climate and business sustainability must go hand in hand, and each project must stand on its own two feet.
This was a difficult decision to make, but it is a decision that is based on the realities we now face. Even if the development of SkyFuelH2 does not continue, Uniper’s strong commitment to the transformation of industry and society remains. Sweden continues to be a very important market for Uniper, said Johan Svenningsson, CEO of Uniper Sweden.
Uniper will explore other potential uses for the Hamre area in Sollefteå. Work on other projects in Uniper’s Swedish portfolio continues.
