Vattenfall and Shell pause HySkies Project, seek new partners

Vattenfall and Shell pause HySkies Project, seek new partners

Vattenfall and Shell have decided to pause their collaboration on the HySkies electrofuel project, with Vattenfall continuing to search for new partners to join potential industry decarbonisation efforts in the Forsmark region.

Initiated in 2021, the HySkies project aimed to accelerate the transition towards electrofuels for aviation. This collaboration between Vattenfall and Shell was designed to leverage innovative technologies to produce sustainable aviation fuels (SAF) and support the decarbonisation of the aviation sector.

Due to differing timelines for project realisation, Vattenfall and Shell have mutually agreed to pause their collaboration. Vattenfall is actively seeking other potential partners to join the initiative and explore the decarbonisation potential of the Forsmark region.

โ€When new technologies are being investigated, like in HySkies, there can be adjustments in  early stages of projects, such as the feasibility study phase. However, Vattenfall believes strongly in the opportunities of the Forsmark region to decarbonise heavy industries, and we will continue our investigations to identify potential suitable partners to join our ambitions towards a fossil free future,โ€ said Per Sundell, Senior business developer, Vattenfall.

Future of HySkies and Forsmark region

Vattenfall remains optimistic about the potential of the Forsmark region to support heavy industry decarbonisation through fossil-free electricity, hydrogen, and captured CO2. 

Vattenfall AB is a Swedish multinational power company owned by the Swedish government. Founded in 1909, it is one of Europe’s largest producers and retailers of electricity and heat.

The Forsmark region is home to the Forsmark Nuclear Power Plant, one of Sweden’s largest producers of electricity. This facility, along with other renewable energy sources in the region, can provide a reliable and substantial supply of electricity necessary for the electrolysis process used in e-fuel production. Forsmark’s existing infrastructure, including grid connections and industrial facilities, makes it a suitable location for developing new industrial projects like e-fuels production.

While Shell acknowledges the future potential of the HySkies project, the current pause reflects differing beliefs in the timelines required for the project’s realization. Both companies have requested the termination of the grant agreement for financial support via the EU Innovation Fund, recognising that it is infeasible to succeed within the framework of the current agreement. This decision aims to free up funds for other decarbonisation initiatives.

Vattenfall’s commitment to a fossil-free future remains steadfast. The company continues to explore innovative solutions and partnerships to achieve significant reductions in industrial carbon emissions. The company is conducting ongoing investigations to identify suitable industrial partners for future collaborations.