While e-fuels, or synthetic fuels, are a bonified method of
decarbonization, like many other decarbonization methods, they suffer from high
costs compared to current practices. One company hopes to decrease costs by
employing high-temperature electrolysis with geothermal heat and power.
Dan Sutton, CEO of
sustainable aviation fuel production company Syntholene Energy, presented a
webinar with Graham Bain for Enverus’s Innovation Underground. A summary of the
webinar is given below.
Sutton noted that low-cost
industrial heat is a very valuable commodity. Generating hydrogen with solid
oxide electrolyzers relies on electricity and can be accelerated by industrial
heat. That heat is provided via hot geothermal. This makes the process more
economical, especially in certain places (such as Iceland) where geothermal is
bot hot and at shallow depths. Here it can significantly outcompete traditional
electrolysis. Power-to-liquids have been around for a long time but are very
expensive. Coal and gas had been the feedstocks previously. Synthetic e-fuels
such as sustainable aviation fuel (e-SAF) are made from H2 and CO2. They
can be powered with renewable energy, which lowers carbon footprint. Geothermal
is both renewable and provides heat, which brings down hydrogen production
costs.
Syntholene began 10-12 years
ago. High-temperature e-SAF is the business. Geothermal has been getting deeper
for cheaper, but shallow geothermal heat, which occurs in Iceland, is ideal.
and makes economics better for H2 derivatives. In the process, electricity and
geothermal heat runs through a thermal coupling to make steam. Energy is saved
by preventing losses with the heat. and geothermal turbines through which the
steam runs provides energy for cracking H2O for H2.
Sutton notes that the
company’s demo facility worked very well from the outset and has now been in
operation for 600-700 hours, with more than a metric ton of H2 produced in
weeks. The process can work with nuclear energy and waste heat as well. The
goal is the break $2/kg boundary for H2 production, then approach $1/kg with
scale-up. This is a first-of-kind project. They planned it in detail and built
modularized components. Modularized components like turbines are smaller but
can be added together and can improve economics as oversizing is limited and
off-the-shelf components can be used rather than each needing to be customized.
Modularized supply chains increase efficiency and encourage optimization. This
process could also be used for other green H2 derived fuels. E-fuel in the form
of methanol-to-jet fuel is popular now. Sutton noted that the first goal to
attract investors is to make a small model that works in the field, however not
optimized it is.
Syntholene’s commercial scale
site has been selected in Northeast Iceland, but they are still working on the
details. Most of the catalysts they use are widely available so supply chains
for them are not constrained such as those requiring rare earth elements. If
supply chains are assured then the main issue becomes materials costs. He
encourages simplification. What is the hardest engineering problem? Creating
geothermal steam and dealing with impurities such as silica, sulfur, etc. It is
the geothermal steam that must be converted into the process heat source for
electrolysis. Costs are the biggest problems, not engineering. CO2 source
issues must also be solved.
Webinar Q&A
What are the dominant
Capex and Opex drivers? The process is thermally integrated. Initial Capex is
high, but with 25–40-year plant life, or possibly longer, it can be economical
in time. Energy is 98% of the cost of producing SAF, H2, etc. Thermal integration
helps reduce it. e-SAF is basically highly refined kerosene. Underutilized
geothermal assets are common due to locations being not near demand centers.
Utilizing hem for e-SAF could help scaling and make some existing geothermal
plants more utilized. Geothermal-to-e-fuels is the goal. He thinks aviation
demand will increase significantly. Their project is expected to create jobs,
more than data centers do. E-SAF companies are often uncompetitive.
Is it a cheaper way to make
e-SAF or more a cheaper way to make H2? H2 is often 70% of cost. H2 is not an
end product but a step in the process. It costs a lot to transport and store.
Using it immediately in processes is better and cheaper.
Can flared
methane be used for heat? It can be used for steam-reformed H2 for cheap, but
needs carbon capture to be sustainable (blue H2). This is best used where
natural gas is cheap but still must be gathered, moved, and stored, which is
also costly. What does success for Syntholene and e-SAF look like? The industry
must solve cost-competition with fossil fuels. Policies and subsidies can help
but are often not enough. If one could get to 2X fossil fuel costs or 1.5X,
then more will happen. Economic viability must be proven or at least a pathway
towards it. They believe they can demonstrate such a pathway.
Emerging Markets' Client Profile for Syntholene Energy
Emerging Markets Consultants’ client profile for Syntholene Energy notes that aviation fuel is responsible for 2.5% of the world’s carbon emissions. It is also noted that in the EU there is a current requirement for 2% e-SAF blending in jet fuel, which is set to rise to 6% in 2030, and projected to 70% by 2050. They note that current costs of e-SAF are 7-10 times the cost of jet fuel, which makes it very uneconomical. Their goal is to get to 2X or even down to 1.5X the current cost of jet fuel. I am not sure if that is with or without subsidization, but I am going to assume it is with subsidization.
The graphics below about the demonstation project in Iceland are from Syntholene Energy's website.
References:
Syntholene
Energy Corporation. Emerging Markets Consulting. Syntholene Energy Corp. (TSXV: ESAF)
| EMC Profile
Synthetic
Aviation Fuel: Inside Syntholene’s Bet on the Thermal Hybrid Path. Webinar by
Enverus. July 20, 2026.
Syntholene
Energy Website. Syntholene Energy (TSXV:
ESAF) | Synthetic Aviation Fuel
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