Developing commercial viability of a HVO and SAF production project

Developing commercial viability of a HVO and SAF production project

Developing commercial viability of a HVO and SAF production project

Infrastructure Services – Energy Transition

The Engagement:

A commercial study on HVO and SAF

The Client:

A storage and processing operator in Northwest Europe

The Challenge:

To assess whether a SAF project would be commercially viable in the market environment in terms of customer margins, market outlooks and regulatory mandates.

Duration:

1 month

How Energex helped:

  • Provided an economic model that ran various scenarios of HVOs and their origin to see the most feasible option for the client
  • Energex’s commercial team carried out a market study to determine forward supply and demand factors for HVO and SAF to underpin the strategic rationale of a SAF project
  • The Energex team provided analysis on mandates and regulations and their potential effect on demand
  • Analysis of European SAF and HVO production capacity plus competitor mapping of announced strategies and production capacities
  • Key SAF stakeholder analysis and their tangible impacts on supply and demand
  • Generated a list of potential customers with a strong match to our client from a feedstocks type/location/business activity perspective

Tangible impact:

  • Provided feasibility assessments of participation options for the client
  • Confirmed that client’s customer SAF margins would be robust
  • Technical and commercial meetings were held with commercial, operations and projects teams
  • Provided a client-usable model