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Shell pulls out of eFuels project in Sweden, Vattenfall searches for new partners

Vattenfall and Shell have decided to pause their collaboration in the HySkies electrofuel (eFuels) project while Vattenfall continues the search for new partners to join potential industry decarbonization developments in the Forsmark region of Sweden.


In 2021, Vattenfall took the initiative to develop the HySkies project together with Shell, aiming to speed up the transition towards eFuels for aviation.


Now Vattenfall and Shell have agreed to pause their collaboration and invite other potential partners to join Vattenfall. 


“When new technologies are being investigated, like in HySkies, there can be adjustments in early stages of projects, such as the feasibility-study phase,” said Per Sundell, Vattenfall’s senior business developer.


“However, Vattenfall believes strongly in the opportunities of the Forsmark region to decarbonize heavy industries, and we will continue our investigations to identify potential suitable partners to join our ambitions towards a fossil-free future,” Sundell added.


Vattenfall stated, “While Shell sees a future in the HySkies project, including opportunities for future potential collaborations, currently there is a different belief in timelines for the project to be realized. With Vattenfall´s high belief in the opportunities of the Forsmark region to decarbonize heavy industries through fossil-free electricity, hydrogen and captured CO2, the full potential is currently under review and investigations are ongoing to identify potential suitable industrial partners to join our ambitions towards a fossil-free future.”


Both companies have requested for a termination of the grant agreement for financial support via the EU Innovation Fund.


Vattenfall said it is “infeasible for the project to succeed within the framework of that agreement.”


In doing so, Vattenfall added that this would free up funds for others to use in their ambitions to decarbonize.



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