Business · Energy & Commodities · 2 hrs ago

Most Spanish projects for alternative fuels lack launch plans

Most Spanish projects for alternative fuels lack launch plans

An Ecodes analysis found that Spain allocated €1.67 billion in public support to 24 projects making synthetic fuels and biofuels between 2021 and 2026.

The money came mainly from European funds, and only two of 20 synthetic-fuel projects are set to start: HyBizkaia and Luxia.

The other 18 face obstacles including high costs, uncertain demand and limited access to networks and supplies.

Synthetic fuels could help cut emissions from aviation, shipping and heavy road transport, but they can cost up to seven times more in early stages.

The European Union relies on imports for more than 95% of its aviation fuel and requires sustainable fuel to reach 6% of supply in 2030 and 70% by 2050.

The EU currently has no e-SAF plants, and meeting its 2030 target is estimated to require about nine.

Companies that fail to meet project milestones may have to repay their public funding.

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Marcos RaufastEcodes representative
The other 18 projects have not met the conditions needed to launch, that is, their economic viability, often because of a lack of demand from airlines and shipping companies, influenced largely by the cost of synthetic fuel, which can be up to seven times higher in early stages, but also by social acceptance, lack of grid access and inputs.
via La Vanguardia