Developing commercial viability of a HVO and SAF production project
Infrastructure Services – Energy Transitions
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