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Vattenfall and St1 explore electro-fuel partnership

Vattenfall and St1 explore electro-fuel partnership
An aerial view of an offshore wind farm (photo courtesy Vattenfall).

In Sweden, energy major Vattenfall AB and Finland-headed energy company St1 Nordic Oy (St1) have signed a Letter of Intent (LoI) to develop a fossil-free value chain for the production of synthetic electro-fuels. The next step is to jointly conduct a feasibility study.

In the partnership, Vattenfall aims to develop an offshore wind power-based hydrogen supply infrastructure on the west coast of Sweden.

I’m very glad we are partnering with St1, two companies sharing the ambition to fight climate change. For Vattenfall, the electrification of society and industry is at the core of our business strategy, said Anna Borg, President, and CEO of Vattenfall.

St1 plans to produce one million m3 of electro-fuels (e-fuels), primarily sustainable aviation fuel (SAF) using fossil-free hydrogen with the first volumes from 2029.

Such volumes equal for example the annual aviation fuel demand of Stockholm Arlanda Airport (ARN).

Energy companies need to show leadership in bravely promoting and developing scalable game-changing solutions. We are very proud of the partnership with Vattenfall, as we share a true dedication to delivering together this significant breakthrough in the energy transition, said Henrikki Talvitie, CEO of St1 Nordic Oy.

Launch feasibility study

Vattenfall and St1 will jointly conduct a feasibility study with the ambition to develop a fossil-free value chain for the production of e-fuels powered by offshore wind in western Sweden.

The development and optimization of value chains based on offshore wind and fossil-free hydrogen is an interesting way forward. Our strong and growing Swedish offshore wind development portfolio of currently more than 20 TWh offers ample opportunities, Anna Borg said.

Transportation and industry currently account for two-thirds of Swedish carbon dioxide (CO2) emissions. Together with industries, Vattenfall works actively with direct electrification and indirect electrification, using fossil-free hydrogen gas.

Vattenfall sees huge potential for decarbonization on the Swedish West coast for industries like refinery and petrochemicals.

St1 is already investing in energy transition through scalable renewable energy production and already produces advanced ethanol and biogas from waste.

A new biorefinery is under construction on the St1 refinery site in Gothenburg. It will have an annual capacity of 200 000 tonnes of renewable fuels production and is expected to commence its operations in 2023.

It is designed to optimize the production of renewable diesel (HVO) and SAF.

Strategic long-term partnerships in various areas are the key elements in the implementation of St1’s sustainable fuels investment program and it shows the importance of industry collaboration across several value chains to meet the ambitious Nordic climate targets, ended Henrikki Talvitie.

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