© McPhy

McPhy, a French supplier of hydrogen production and distribution equipment, will deliver 80MW of electrolysers to Scotland’s HyLion project that aims to produce 45,000 tonnes of e-methanol annually by 2028. The project, led by MHP (a Porsche Group consultancy), will be hosted by E.ON Energy Infrastructure Solutions in Lockerbie. Key players include Arup for engineering design, Bosch for water treatment, and Scottish firms CO2 Recovery and The Carbon Removers for carbon capture. This initiative is designed to integrate hydrogen production with carbon capture to advance sustainable fuel solutions.

Carbon Capture and Renewable Energy Challenges

HyLion will utilize 63,000 tonnes of biogenic CO2 annually from whisky distilleries and E.ON’s biomass plant, ensuring that its methanol production does not contribute to net carbon emissions. However, securing a sustainable and compliant renewable energy source remains a key hurdle. To meet EU regulations, hydrogen production must be powered by renewable sources less than three years old at the time of commissioning. This requirement eliminates biomass as an option, making wind power the likely candidate. However, the specifics of how the project will integrate with Scotland’s wind resources have yet to be disclosed, leaving uncertainties around feasibility and cost.

Market Potential and Scalability

HyLion has already secured offtakers for its e-methanol. German firm P1 Fuels will convert a portion into synthetic fuels for road transport, while Norwegian offshore wind installer Cadeler will use it as a maritime fuel. The project has significant growth potential, with up to 680,000 tonnes of biogenic CO2 available annually, offering an opportunity for expansion. However, the ability to scale will depend on reducing electrolyzer costs, ensuring reliable renewable energy supply, and securing ongoing policy support to maintain competitiveness against fossil fuels and alternative green fuels like ammonia.