Hydrogen Utopia identifies exponential SAF and diesel deployment potential
Hydrogen Utopia International PLC (HUI), has identified the potential to use its InEnTec technology to augment hydrogen in syngas for the production of carbon-free fuels such as sustainable aviation fuel (SAF) and other hydrogen-derived fuels, such as diesel.
The pioneering company, which converts non-recyclable mixed waste plastic, tyres and hazardous waste materials into hydrogen and carbon-free fuels, is now actively exploring this opportunity in the MENA (Middle East and North Africa) region, with a particular focus on the Kingdom of Saudi Arabia (KSA).
Because SAF commercial plants using the InEnTec technology would not need to be co-located with existing steel mills or cement plants, they could be sited almost anywhere in the MENA region to serve a range of industries and produce a robust menu of commercial and industrial products, particularly SAF. This flexibility could potentially increase deployment opportunities for the InEnTec technology in the MENA region exponentially.
Image ©Hydrogen Utopia
Preliminary, high level financial modelling suggests a project of this nature in the KSA might be capable of achieving an internal rate of return in the high teens depending on a range of assumptions including, eventual product mix, offtake pricing and terms of offtake agreements, the cost and availability of feedstock contracts and broader regional market conditions.
Under the current conceptual structure, HUI or its subsidiary HUI KSA, would be expected to hold a 10 to 20 per cent free carry equity interest in an SPV. In addition, HUI, or its subsidiary HUI KSA, may begin receiving management fees from the Front End Engineering Design (FEED) stage. This preliminary analysis indicates a potential pathway for the development of large-scale capital projects requiring investment of a minimum of approximately US$800 million per facility.
MENA currently accounts for an estimated eight to 10 per cent of global SAF market value. Regional aviation fuel demand is driven by major international hubs and long-haul carriers, while SAF supply remains limited.
Industry forecasts indicate that SAF demand in MENA is expected to increase at a projected compound annual growth rate (CAGR) in excess of 40 per cent through the 2030s, supported by airline decarbonisation commitments, evolving policy frameworks and continued investment in renewable hydrogen and synthetic fuel pathways.
Low carbon hydrogen is an essential and non-substitutable input to SAF production, and without hydrogen, SAF cannot be manufactured. Secure, scalable hydrogen supply is therefore a fundamental prerequisite for any viable SAF project.
InEnTec's ultra clean hydrogen production technology is considered better than other methods and its ability to produce hydrogen from plastic waste is expected to help make projects bankable, facilitate offtake discussions and support long-term operating resilience.
HUI Chief Executive Officer Aleksandra Binkowska said: "When I started HUI, I believed we would be playing in the EU league, fuelling hydrogen buses and transforming local transport.
“Today, after years of trials, resilience, and learning, we stand at the threshold of something far bigger, an opportunity to play in the international league alongside the world's largest players: the airlines and the airports. Reshaping one of the biggest industries in the world.”
HUI Chairman Howard White added: "I am delighted and very excited by this long-overdue recognition of the potential of SAF, which could unlock exponential opportunities across the MENA region. What has surprised us most is the sheer scale of the shortage – far greater than we ever anticipated. Even more striking is the widespread lack of understanding about what SAF is and how it is fundamentally reshaping global air travel.
“The growth potential is extraordinary, with a CAGR of over 40 per cent projected over the next five years, and strong momentum sustained over the next 20 years.”
For more information, visit www.hydrogenutopia.eu.