For those who don’t know, what work does Smartenergy do?
Smartenergy was founded in 2011 in Wollerau, Switzerland. Our focus is on investing in renewable energy projects that significantly contribute to environmental decarbonization.
These projects are structured to ensure economic and financial viability, which is essential for their realization.
We are a driving force in the industry’s ongoing transition to green energy, focusing on the deployment of solar, wind, green hydrogen, and synthetic fuels projects. We are convinced of the potential of hydrogen and its derivatives, such as SAF, for decarbonization where electrification is not possible.
Our Head Office is based in Wollerau, and we have local companies in the European markets where we operate, namely Spain, Portugal, Italy, and Germany. Local knowledge and proximity to industry stakeholders allow us to identify and expedite the development of better opportunities early on.
Founded in 2011, in Switzerland, Smartenergy has offices in Portugal, Spain, Italy, Germany, and the United Arab Emirates. Is renewable energy an expanding market?
Decarbonizing the economy implies electrifying processes, which will naturally drive the increased demand for renewable electricity. Furthermore, in sectors where electrification is not technically possible or economically viable, the adoption of sustainable fuels produced through processes powered by renewable electricity is anticipated.
It is desirable to progressively achieve significant gains in energy efficiency and economic efficiency in energy resource consumption. Overall, we understand that the market is expanding.
We are focused on these markets, considering not only the local endogenous resources, which is especially relevant in the cases of Portugal and Spain, but also the energy consumption potential of their respective economies.
This potential was evident in the results of the first auction of the European Hydrogen Bank, which attracted 132 projects from 17 European countries. Three projects located in Spain and two in Portugal were winners, with a planned total installed capacity of 1295 MW.
Is the most immediate solution for achieving more sustainable aviation the use of SAF?
Sustainable aviation fuels (SAF) are considered one of the best options for decarbonizing the aviation industry for several reasons.
Firstly, they are characterized by reduced carbon emissions compared to conventional fossil fuels, being produced from renewable sources such as biomass, waste, or algae, or synthetically through electric processes.
Another significant advantage is their compatibility with existing infrastructure. SAF is what is called a “drop-in fuel,” which can be blended with conventional aviation fuel without requiring major modifications to engines or aircraft and airport infrastructure. Airlines can gradually transition to SAF without altering operations.
Additionally, SAF technologies have significant technological maturity, having been well-established and tested in commercial flights, although efforts continue to improve their efficiency and scalability.
Smartenergy aims to produce eSAF. What is the difference between eSAF and SAF?
As previously mentioned, SAF is a low-carbon alternative to conventional fossil-based aviation fuel. It is usually produced from biological feedstocks such as used oils, fats, and other renewable sources. eSAF, which we could call electro-fuel, is a synthetic fuel produced from renewable electricity.
The production process includes electric processes like water electrolysis to obtain green hydrogen, CO2 capture, and synthesizing hydrogen with carbon to produce synthetic fuel. Both SAF and eSAF are compatible with current jet engines, offering similar performance to fossil fuels but with reduced CO2 emissions.
Currently, SAF is produced from biological feedstocks, which presents a scalability challenge for the future. eSAF is based on processes that are easier to scale and replicate since it depends only on the availability of renewable energy in sufficient quantity at convenient prices.
It is expected that production costs for SAF and eSAF will decrease significantly in the coming years, benefiting from economies of scale.
What projects are you currently developing in Portugal and the Iberian Peninsula?
Smartenergy has a pipeline of projects under development that exceeds 12GW of installed capacity.
This includes four eSAF production projects in Portugal and Spain, with a projected capacity exceeding 1.5 GWe, in addition to the necessary renewable energy production capacity.
The “Galileu Green H2 Valley” project, located in Vila Franca de Xira, is the most advanced and will have an electrolyzer capacity of 550 MWe. It was distinguished at COP28 in December 2023 for its sustainable hydrogen and eSAF production.
What are the characteristics of the project that led to this distinction?
This Smartenergy project was distinguished as an “Energy Transition Changemaker” at COP28, among over 1000 projects analyzed, due to its unique characteristics.
On one hand, the project focuses on producing sustainable aviation fuels, thereby contributing to the decarbonization of the aviation sector, considered one of the “hard to abate sectors.”
On the other, it includes the production of green hydrogen to supply various industries, also in the “hard to abate sectors,” such as the cement industry, replacing natural gas as an energy vector.
Furthermore, CO2 emitted by the cement industry will be captured to produce synthetic fuels. Thus, the project promotes decarbonization in three ways.
The distinction also recognized the partnerships established with the industry, notably with CIMPOR.
It is expected that, in the final phase, the three projects Smartenergy is developing in Portugal will have a production capacity of up to 300 kt per year. When do you expect this to happen? How many planes per year can this production capacity supply?
Excellent question! Considering the Lisbon-Frankfurt route, where about 5 tons of jet fuel are consumed in an A320, the production we anticipate achieving will be able to supply 60,000 flights.
We hope that the project licensing processes proceed quickly in the coming years and that the Final Investment Decision (FID) occurs by the end of 2025, so that production can begin by the end of 2027.
These are ambitious deadlines, we are aware, but the urgency of decarbonization should be sufficient motivation for all involved stakeholders to find the necessary solutions to the challenges these processes entail.
How do you evaluate Smartenergy’s participation in this year’s AEDDays?
This year’s AEDDays edition attracted the interest of several members of our team as it provided an excellent opportunity to interact with key players in the sector.
The event was extremely fruitful and very rich, with the high level of the presentations we had the opportunity to attend being particularly noteworthy.
Smartenergy is one of the main sponsors. Why did you decide to do so?
Smartenergy decided to become one of the main sponsors of the AEDDays for several reasons.
Firstly, as a leading company in developing projects related to green hydrogen derivatives for sustainable aviation fuels (SAF), we see this opportunity as a crucial platform to showcase our company, our dynamics, and our innovative spirit.
Additionally, we want to highlight our commitment to decarbonizing the aviation sector and demonstrate how we can contribute to achieving this ambitious goal.