DHL, Sasol, HH2E team up for eSAF production in Germany

German logistics company Deutsche Post AG (ETR:DHL), trading as DHL Group, and South African chemicals and energy company Sasol Ltd (JSE:SOL) have teamed up with green energy firm HH2E AG for the production of sustainable aviation fuels based on green hydrogen (eSAF) in Germany.

The partnership will aim at building an eSAF plant in East Germany where it could conveniently serve airports, including Leipzig/Halle. The companies are targeting an initial production capacity of at least 200,000 tonnes of eSAF per year, with the possibility to boost the volume to 500,000 tonnes annually.

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The consortium could be joined by European aircraft maker Airbus SE (EPA:AIR) which will also be another possible off-taker of the output of the planned eSAF plant, according to a recent press release.

The consortium is now set to immediately specify the technical and financial planning, as well as the financing and definition of the regulatory framework. The statement highlighted that a project of this size would require a multi-billion investment for which the EU and the German federal and state governments should rapidly shape the framework conditions in such a way that the necessary private investments are made.

HH2E is targeting a green hydrogen production capacity of 4 GW in Germany by 2030. The company has already unveiled plans for two major facilities -- in Lubmin, Mecklenburg-Vorpommern, and in Thierbach, close to Leipzig.