Scotland’s HyLion Project to Produce e-Methanol for Ships, Planes and Motorsport by 2028

A new alliance in Scotland, led by inerlab’s Steven’s Croft biomass power station, is set to launch e-methanol production by 2028 – targeting hard-to-decarbonise sectors including shipping, aviation, and motorsport.

Under the HyLion initiative, the project will combine green hydrogen produced via electrolysis with biogenic CO₂ captured from local whisky production and the biomass plant itself. The result is e-methanol, a low-carbon, synthetic fuel offering a cleaner alternative to petrol and diesel.

Steven’s Croft, one of Scotland’s largest renewable energy facilities, already generates 44 MW of electricity from waste wood, saving around 140,000 tonnes of CO₂ annually. Its integration into the HyLion supply chain enables the production of 45,000 tonnes of e-methanol per year initially, with potential to scale up tenfold as demand and technology grow.

The project also serves as a model for replicable regional supply chains, integrating renewable energy, secure CO₂ sourcing, and digital monitoring – key elements expected to align with future low-emission fuel regulations.

HyLion partners include MHP Consulting (Porsche Group), McPhy Energy, Bosch Manufacturing Solutions, CO2-Recovery Ltd, The Carbon Removers, Arup, Mareneco, Cadeler A/S, and P1 Performance Fuels.