Elyse Energy has raised €120 million to accelerate development of its e-methanol and sustainable aviation fuel production projects in France and Spain. Elyse Energy designs, develops, finances, builds, and operates production facilities for sustainable fuels derived from renewable and nuclear electricity, as well as recycled carbon from industry or biomass.
The round was led by Hy24 which acquired a stake in the company through its ‘Clean Hydrogen Infrastructure Fund’, and Mirova. French public investments Bpifrance and Dutch pension fund investor PGGM also joined the round.
Elyse Energy has a diversified portfolio of projects producing sustainable aviation fuels and e-methanol in France and the Iberian Peninsula. This funding round will enable Elyse Energy to pursue the development of its most advanced projects to final investment decision (FID), a prerequisite for launching construction, while consolidating and expanding its project portfolio. When operational, the company said its most advanced projects–E-ECHO, eM-Rhône and eM-Numancia–would save about 700,000 tons of CO2 equivalents per year, at the same time as contributing to European security of energy supply and reindustrialization.
“We must stay the course on French and European ambitions to decarbonize the maritime and aviation sectors, which cannot achieve their transition without low-carbon hydrogen,” said Pierre-Etienne Franc, Co-founder and Chief Executive Officer of Hy24. “The role of these molecules in our future energy mixes and for our industries is central. They will enable France to position itself as a strategic player at the heart of the European energy hub.”
Shipping generates 3% of global greenhouse gas (GHG) emissions, primarily from the burning of fossil fuels. The European Union’s Emissions Trading System (ETS) requires shipping companies to purchase and use emission allowances for each ton of reported CO2 or equivalent starting in 2025. The first year, companies will only have to apply ETS for 40% of their emissions, gradually increasing to 100% in 2027. Additionally, the International Maritime Organization requires ships to calculate their energy efficiency and their carbon intensity with the goal of reducing the industry’s carbon intensity by at least 40% by 2030, compared to 2008.
“E-methanol and SAF are becoming indispensable links in the transition to more sustainable transport and industry,” said David Jerez Antoni, Associate Director at PGGM Infrastructure. “To achieve this, a robust infrastructure must be developed for the production and distribution of these sustainable forms of energy. PGGM is investing in Elyse Energy because it proves to create value in this energy transition. In doing so, we fulfil the ambition of our client PFZW to play a role in the decarbonization of our economies through profitable and impactful investments.”
