DNV has successfully conducted a comprehensive technical due diligence (TDD) to support Elyse Energy, an independent French company specializing in the production of low-carbon molecules, in securing a 120 million investment from Hy24, PGGM, Bpifrance, and Mirova.
The funds will support Elyse Energy's sustainable fuel and low-carbon feedstock production projects in France and Spain, with a focus on e-methanol and sustainable aviation fuel. In line with France's and Europe's decarbonization and green reindustrialization objectives, including compliance with the ReFuelEU Aviation and FuelEU Maritime regulations, these initiatives aim to meet the increasing demand for decarbonization solutions in the aviation, maritime, and chemical industries. Collectively, they are projected to reduce CO2 emissions by approximately 700,000 tons annually by replacing fossil fuels with low-carbon alternatives. The first project is expected to be commissioned in 2028.
DNV provided an independent technical review of Elyse Energy's four most advanced projects, assessing multiple critical aspects, including the organization's structure, governance, project maturity, permit status, design, technology, power sourcing, offtake strategy, project schedules, and technical input to the financial model. Due to the complex nature of these projects, DNV's team performed a detailed evaluation of project design, technology, and forecasted performance.
DNV's 2024 Energy Transition Outlook highlights low-carbon hydrogen and its derivatives as an enabler of the energy transition, driving the shift away from fossil fuels and supporting the decarbonization of hard-to-abate sectors like maritime shipping and aviation. By 2030, Western Europe is expected to produce 10 million tons of low-carbon hydrogen annually. Looking further ahead, DNV projects that hydrogen and its derivatives will account for 4% of the final energy demand by 2050. This growth in hydrogen capacity will be crucial for establishing new energy supply and value chains.
"Our technical due diligence for Elyse Energy underscores DNV's continued commitment to supporting projects that drive low-carbon solutions. With our deep expertise in hydrogen and sustainable fuel technologies, we ensure projects are both viable and positioned for successful development," said Santiago Blanco, Executive Vice President and Regional Manager Southern Europe, Middle East, Latin America and Africa, Energy Systems at DNV.
"Comprehensive technical reviews are essential for securing investment in the energy transition sector. DNV managed to deliver to our investors a comprehensive analysis of the complexity of sustainable fuel projects in Europe. Technical expertise and market projections are key for advancing decarbonization, especially in areas requiring structural and supply chain changes." added Margot Le Guen, Investment and Financing Director at Elyse Energy.
"This project marks another significant step in DNV's expanding presence in France, particularly in the energy sector, concluded Nicolas Boruchowicz, Market Area Manager France. "Our move to bigger headquarters in Paris and the continuous recruitment and training of local experts underscore our commitment to providing direct and localized support to our wide French customer base. We are excited to contribute to the development of France's hydrogen and sustainable fuel ecosystems, which are key to achieving the country's ambitious decarbonization goals."
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