The T.H2 JV will seek funding from the European Innovation Fund to construct a fuel production plant near Caen, which would process wood residue into eSAF and e-naptha.

The Belair project could use around 60,000 tonnes of wood waste from Tertu’s timber-metal guardrail manufacturing to produce hydrogen-rich syngas which will be converted into synthetic hydrocarbons.

T.H2 plans to commission the plant by 2029 having already passed initial engineering phases. The facility’s production capacities have not been disclosed.

T.H2 is preparing an application for the European Innovation Fund to support the project’s realisation.

This marks a change from Ineratec, which has so far focused on developing e-fuel projects based on combining green hydrogen with biogenic carbon dioxide. It has been operating a pilot plant in Frankfurt since 2025.

This adds to the spiking activity of e-fuel producers across Europe which are ramping up production capacities to fulfil policy driven demand.

ReFuelEU Aviation regulation dictates that at least 10% of aviation fuel must come from SAF by 2030, with a target of up to 70% by 2050.

Simultaneously, FuelEU Maritime regulations will set maximum emissions limits on greenhouse gas intensity used by large ships using EU ports.

While these mechanisms will push demand, industry players have sent warnings to offtakers around pushing back e-fuel adoption to the last minute.

HyFive said this could result in adverse consequences when policy demand finally bites.