en.Wedoany.com Reported - The German government has provided €350 million in state support for a project to produce 30,000 tonnes per year of e-Sustainable Aviation Fuel (e-SAF) based on green hydrogen. This follows the project developer's decision to relocate the plant to the strategically sensitive PCK Schwedt refinery.
The project, with a total investment of approximately €500 million, is being advanced by renewable energy company Enertrag and the Topsoe-Sasol SAF joint venture Zaffra. Originally planned to be built near Berlin, the project has now been relocated to the PCK Schwedt refinery near the Polish border.
The project was previously named "Concrete Chemicals" and was designated by the European Commission as an Important Project of Common European Interest (IPCEI) in 2024.
The project will utilize green hydrogen delivered via Gascade's 400-kilometer "Flow" hydrogen pipeline, along with carbon dioxide captured from a local paper mill, to produce 30,000 tonnes of e-SAF annually.
Enertrag and Zaffra expect to make a final investment decision by the end of 2027 and commence production in 2030.
Germany's Federal Ministry for Economic Affairs and Energy (BMWI) stated it supported the companies' request to relocate the project to Schwedt, and the European Commission approved the relevant permit changes in April this year.
Of the total funding, the BMWI provided €245 million, while the state government of Brandenburg contributed €105 million.
The companies did not disclose whether the change of location would alter the total project cost.
The relocation comes amid the German federal government's ongoing intervention in the operations of the PCK refinery.
As the refinery's majority shareholder is the Russian oil company Rosneft, the German government placed the refinery under state trusteeship following the outbreak of the Russia-Ukraine conflict in 2022 to secure fuel supply and protect jobs at this critical refining hub.
On May 11, the BMWI also extended the job security guarantee for employees for another six months, until the end of 2026.
BMWI Minister Katherina Reiche stated: "What is important now is to continuously stabilize the energy supply for PCK and the region, to strengthen growth potential in a targeted manner, and to attract new investments."
The project's relocation to Schwedt also aligns with Berlin's broader strategy to transform the politically sensitive PCK refinery into a hub for hydrogen and sustainable fuels.
Katherina Reiche also noted that the relocated SAF project "combines industrial strength with innovation, opens up new value chains, and creates long-term prospects for jobs, prosperity, and energy security."
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