Spanish engineering company Técnicas Reunidas has secured a front-end engineering design (FEED) contract from Alby PtX for a planned synthetic sustainable aviation fuel (e-SAF) facility in Alby, within Sweden’s Ånge municipality. The project is designed to produce approximately 66,000 tonnes of e-SAF annually using renewable electricity, water and captured carbon dioxide.
The award marks Técnicas Reunidas’ first contract in Sweden and advances the Alby project into a more detailed engineering phase. The FEED work will cover the integration of the plant’s production processes and establish the technical foundation for a potential engineering, procurement and construction (EPC) contract.
However, construction remains conditional on Alby PtX taking a positive final investment decision (FID) and the subsequent award of an EPC contract.
Power-to-Liquid process to produce synthetic aviation fuel
The planned facility will use a Power-to-Liquid (PtL) pathway, combining green hydrogen produced through water electrolysis with captured carbon dioxide to manufacture synthetic hydrocarbons.
Under the FEED contract, Técnicas Reunidas will integrate the engineering of the complete production process. The proposed configuration includes several conversion and refining stages:
- Green hydrogen production: Renewable electricity will power electrolysers to split water and produce hydrogen.
- Reverse water-gas shift (eRWGS): Hydrogen will react with captured carbon dioxide to generate carbon monoxide and hydrogen-rich synthesis gas.
- Fischer-Tropsch synthesis: The synthesis gas will be converted into long-chain hydrocarbons, forming a synthetic crude-oil intermediate.
- Hydrocarbon enrichment and treatment: Further processing will prepare the intermediate for refining into the final aviation fuel.
- Naphtha recycling: The design includes a recycling system for naphtha to increase carbon utilisation, process efficiency and e-SAF output.
The project will incorporate technology packages from specialist licensors, with their pre-engineering work providing the technical basis for the FEED phase.
FEED award moves Alby project towards investment decision
The engineering contract is intended to establish the design and technical basis needed for the project to progress towards FID. If Alby PtX approves the investment and awards a subsequent EPC contract, Técnicas Reunidas could take responsibility for engineering, procurement, construction, commissioning and start-up.
Lars Bjørn Larsen, member of the Alby PtX board and chief executive of Norsk e-Fuel, described the appointment as a key milestone in advancing the project towards an investment decision.
“The FEED phase will provide the engineering foundation for a plant designed to produce 66,000 tonnes of synthetic aviation fuel per year, supporting aviation’s decarbonisation and establishing Sweden as a producer of sustainable fuels,” Larsen said.
Gonzalo Pardo, commercial director of Track& Services at Técnicas Reunidas, said the award strengthens the company’s position in the energy transition sector and adds to its portfolio of sustainable fuels, hydrogen and Power-to-X projects across Europe.
Alby PtX backed by Norsk e-Fuel and Prime Capital
Alby PtX is jointly owned by Norwegian e-fuel developer Norsk e-Fuel and independent asset manager Prime Capital. Renewable energy company RES is supporting the project as a development partner.
The facility is planned for Alby in Ånge municipality, northern Sweden. The location was previously developed for hydrogen production and offers access to renewable energy resources, rail infrastructure and an emerging industrial cluster.
Alby PtX submitted an environmental permit application in March 2026, covering issues including water impacts, noise, the natural environment and chemical risk management. The permitting process is a separate project milestone from the FEED award.
The latest 66,000-tonne annual e-SAF design capacity provides a basis for the current engineering contract. The project developer’s earlier published materials described a broader production concept with different capacity assumptions, which may be refined as engineering progresses.
Técnicas Reunidas expands engineering services business
The Swedish contract forms part of Técnicas Reunidas’ SALTA Strategic Plan, which includes expanding its engineering and project management services business.
The company said it expects to secure nearly €400 million in contracts for these activities during 2026. It is targeting €500 million in revenue from the segment by 2028.
The Alby award adds to its European sustainable fuels and Power-to-X project portfolio while providing an entry point into the Swedish market.
Bioenergy Business Analysis
The Alby project brings together three key components of the emerging e-SAF value chain: renewable electricity, green hydrogen and captured carbon dioxide. Its Power-to-Liquid configuration uses hydrogen as an intermediate energy carrier and Fischer-Tropsch synthesis to convert carbon-containing feedstock into liquid hydrocarbons suitable for further refining into aviation fuel.
The FEED contract is an important development milestone because it allows the project partners to advance process integration and engineering ahead of an investment decision. However, the announced production capacity should not be interpreted as committed or available fuel supply. Project execution will depend on the outcome of engineering, permitting, financing, renewable electricity procurement, carbon dioxide sourcing and the FID.
For the wider European e-SAF market, Alby is another proposed industrial-scale project seeking to develop domestic synthetic aviation fuel production. Its progress will offer an indication of how quickly Power-to-Liquid projects can move from development into investment and construction.
Related: Read about DHL’s use of sustainable aviation fuel at Paris CDG.
