Swiss steamboats to receive synthetic diesel under five-year deal - Synhelion

Swiss passenger vessel operator Lake Lucerne Navigation will purchase 100 mt of synthetic diesel from Synhelion’s Jülich plant under a five-year offtake agreement, a Synhelion spokesperson told ENGINE.IMAGE: Passenger vessel on Lake Lucerne. Lake Lucerne Navigation

Swiss start-up Synhelion is developing three synthetic fuel production facilities: a 1,000 mt/year plant in Jülich and a 30,000 mt/year plant in Hürth-Knapsack, both in Germany, and a larger 100,000 mt/year facility in Morocco.

Synhelion expects the Jülich plant to start commercial operations in 2028, while the company has not disclosed timelines for the other two projects.

Schifffahrtsgesellschaft des Vierwaldstättersees, also known as Lake Lucerne Navigation (SGV), operates a fleet of 19 passenger vessels on Lake Lucerne in Switzerland.

It will purchase 100 mt of renewable synthetic diesel from the Jülich plant under a five-year offtake agreement, the spokesperson said, but did not specify whether the volume covers the entire contract period or represents an annual commitment.

Beyond the SGV agreement, Synhelion is "in discussions with organizations in the [shipping] sector about potential supply from our future plants," the spokesperson said, adding that the company has yet to secure any other offtake agreements with shipowners or bunker suppliers.

Synhelion's production technology can yield synthetic jet fuel, diesel and gasoline. The share of each fuel can be adjusted depending on how the plant is configured.

The amount of fuel earmarked for shipping will depend on customer requirements and the offtake agreements Synhelion eventually signs, the spokesperson said.

Long-term offtake agreements could also help support the development of additional production capacity while giving buyers greater certainty over future fuel availability.

Future expansion

Synhelion is exploring synthetic fuel production sites beyond Germany and Morocco, with Southeast Asia, Brazil, Oman and other parts of Europe among the options.

The company could establish production facilities in regions where renewable energy and biogenic waste are readily available, as both are essential inputs for its technology.

Synhelion’s synthetic fuels could cut net CO2 emissions by up to 100%, compared with fossil fuel, the spokesperson said.

Local production could also reduce reliance on imported fossil fuels, particularly in countries that depend heavily on overseas energy supplies.

By Konica Bhatt

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