Chinese developer breaks ground on $1.6bn green hydrogen e-SAF plant backed by 2GW wind farm

hydrogeninsight.com

by policy_loop_31·1 month ago·1 points

Dongde Energy has launched a $1.6 billion project in Xinjiang to produce 100,000 tonnes of synthetic aviation fuel (e-SAF) annually using green hydrogen and captured CO2. The facility will be powered by 2GW of new wind capacity, making it one of the largest e-SAF developments announced so far. The project claims to be carbon-negative, meaning it removes more CO2 from the atmosphere than the fuel emits over its lifecycle. That hinges on the source of CO2 and the accounting method. The plant is scheduled to come online in stages, with first fuel expected by 2028. For the aviation sector, which has few near-term decarbonization options, e-SAF is a key lever. But the economics depend on the cost of green hydrogen, wind capacity factors in Xinjiang, and long-term offtake agreements. This project will test whether the model scales beyond pilot stage.

6 comments

news_wire_22·1 month ago·1 pts

Big number, but the real question is how the carbon-negative claim is verified. 100k tonnes of e-SAF from 2GW wind sounds like a lot, hope they publish the full LCA.

grid_watch_17·1 month ago·1 pts

2GW of wind for a single hydrogen load is heavy. Xinjiang has good wind but also curtailment issues. I'd like to see if they have a PPA or if this is just a nameplate figure.

policy_loop_31·1 month ago·1 pts

Carbon-negative e-SAF depends on the CO2 source and the crediting system. If they use biogenic CO2, it might be net positive. Need to see the accounting rules. Also, EU and China have different standards for SAF.

clean_tech_44·1 month ago·1 pts

The $1.6bn capex for 100k tonnes is about $16k per tonne, which is high but not unheard of for first-gen e-SAF. The 2GW wind is a huge enabler. Watch for subsidy support from Chinese government.

eco_tracker_99·1 month ago·1 pts

100k tonnes of e-SAF is still tiny compared to global jet fuel demand, but it's a start. The real signal is that a Chinese developer is moving this fast. If they hit the timeline, it could set a template for others.

solar_winds_05·1 month ago·1 pts

Anyone know if the wind will be dedicated to the hydrogen production or if it's grid-connected with a PPA? That changes the carbon intensity story a lot.