After signing a non-binding term sheet for the offtake of half the capacity of its 50MW e-methanol plant at a Spanish port with an unnamed party, the Bilbao-based firm took aim at the sluggish ramp-up of demand.

The company announced that half of the capacity of its 100,000 tonne-per-year plant could be sold to an unnamed customer under a comprehensive term sheet for what it called “an agreed and mutually acceptable price range”.

It went on to claim that while regulatory momentum is moving the shift to renewable fuels forward, production, infrastructure, and development cycles are likely to lag.

While HyFive celebrated the milestone, in a statement, it acknowledged the slow development of the e-methanol market, saying expressions of interest were slow to convert to binding offtake.

“When demand becomes fully activated, alternative fuels will be structurally scarce.” The firm asserted.

European aviation and maritime players are beginning to confirm uptake of alternative fuels in pursuit of ReFuelEU Aviation regulation and International Maritime Organization objectives.

HyFive said that without early offtake, projects are struggling to reach final investment decisions.

This could keep costs high due to a lack of scale and have adverse consequences when policy demand finally bites.

HyFive signed off saying, “The term sheet we have signed is a clear example of how forward‑looking partners are already positioning themselves.

“There is more to come…we welcome additional offtakers who understand that the right moment to engage is now, not once the market tightens.”