New partnership to produce a large volume of fossil-free aviation electro fuel on the Swedish west coast

Vattenfall and St1 have signed a Letter of Intent to develop a fossil-free value chain for production of synthetic electro fuel and the next step is to jointly conduct a feasibility study. The study aims at addressing the full value chain for production of electro fuel from offshore wind, starting 2029 and gradually growing towards the target of one million cubic meters.

Vattenfall and St1 will jointly conduct a feasibility study with the ambition to develop a fossil-free value chain for production of electro fuel, through offshore wind. In the partnership Vattenfall aims to develop an offshore wind power-based hydrogen supply infrastructure on the west coast of Sweden and St1 plans to produce one million cubic meters of electro fuels, primarily targeted for sustainable aviation fuel using the fossil-free hydrogen. Such volumes equal for example the annual aviation fuel demand of Arlanda airport. First drops starting from 2029 and onwards.

"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. The development and optimisation 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”, says Anna Borg, President and CEO of Vattenfall.

Two thirds of Swedish carbon dioxide emissions today come from industry and transports. Together with industries, Vattenfall works actively with direct electrification and indirect electrification, using fossil-free hydrogen gas. Vattenfall sees huge potential for decarbonisation on the Swedish West coast for industries like refinery and petrochemicals.

“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 true dedication to deliver together this significant breakthrough in the energy transition. 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”, says Henrikki Talvitie, CEO of St1 Nordic Oy.

On the spirit of its vision, St1 is already investing in energy transition through scalable renewable energy production. A new biorefinery is under construction on the St1 refinery site in Gothenburg. The biorefinery 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 production of renewable diesel and sustainable aviation fuel. St1 already produces advanced ethanol and biogas from waste.