HyLion network: e-methanol for CO2-reduced supply chains

A new initiative, the HyLion network, is set to revolutionise sustainable energy production by generating CO₂-reduced hydrogen from renewable sources in Scotland. This hydrogen will then be converted into e-methanol, supporting the decarbonisation of supply chains across the UK and Europe.

Key Highlights

• Strategic Green Energy Hub: Scotland will produce e-methanol for applications in shipping, aviation, and motorsport.

• Strong Industry Collaboration: The HyLion network includes key partners such as ARUP, McPhy Energy S.A.S, Bosch Manufacturing Solutions GmbH, E.ON Energy Infrastructure Solutions, CO₂ Recovery Ltd & The Carbon Removers, Mareneco Ltd, Cadeler A/S, and P1 Fuels.

• MHP’s Leading Role: Consulting firm MHP is providing strategic and operational expertise, supporting the network with digital solutions along the supply chain.

• Driving Net-Zero Goals: The project aligns with Scotland’s hydrogen strategy and the broader European climate targets.

Building a European Supply Chain for E-Methanol

The HyLion network aims to establish a transnational, European end-to-end supply chain for CO₂-reduced hydrogen and e-methanol. By producing e-methanol in Scotland, the project will contribute to reducing carbon emissions across industries, including Germany and other European nations.

Markus Wambach, Group COO at MHP, states:“HyLion brings together strong partners to produce e-methanol in Europe, for Europe. This initiative plays a crucial role in decarbonising global supply chains, particularly in shipping and aviation. With AI-driven supply chain solutions, we can enhance efficiency and create a foundation for greener energy solutions in key industries—including motorsport.”

Pilot Project: Scaling Up E-Methanol Production

As part of its first pilot phase, HyLion plans to:

• Utilise 63,000 metric tonnes of biogenic CO₂ annually, sourced from biomass and the whisky industry.

• Produce 9,000 metric tonnes of hydrogen and 45,000 metric tonnes of e-methanol per year. • Begin production by early 2028.

With future scalability in mind, the network has identified potential access to 380,000 metric tonnes of CO₂ from biomass and 300,000 metric tonnes from whisky production, paving the way for modular expansion.

Dr. Sylvia Trage, Partner at MHP, explains:“CO₂-reduced hydrogen is vital for meeting climate targets. The increasing demand for e-methanol—driven by stricter CO₂ regulations and a shift away from fossil fuels—makes this project crucial. Scotland’s rich wind energy resources provide the perfect conditions for scalable green hydrogen production.”

Project Execution and Partner Contributions

• HyLion will leverage a network of renowned companies to deliver the project:

• E.ON Energy Infrastructure Solutions will supply biogenic CO₂ from a biomass power plant in Lockerbie.

• The Carbon Removers & CO₂ Recovery Ltd will extract, liquefy, and store CO₂ from whisky production.

• McPhy Energy S.A.S. will provide an 80 MW electrolyser to generate hydrogen.

• Bosch Manufacturing Solutions GmbH will manage water treatment and desalination.

• The hydrogen and CO₂ will be synthesised into e-methanol, using cutting-edge European technology.

• P1 Fuels will convert e-methanol into an e-fuel, supporting motorsport, light aircraft, and existing fuel infrastructures.

• Cadeler A/S, a key partner, will use e-methanol to decarbonise shipping operations.

• Mareneco Ltd will handle transport and logistics to key ports like Cairnryan and Grangemouth.

The Lockerbie location, operated by E.ON Energy Infrastructure Solutions, was strategically chosen for its developed infrastructure, electricity grid access, and local energy supply.

MHP’s Leading Consulting Role

As a key partner, MHP is leading:

• Strategic business development and network coordination.

• Digitalisation of the supply chain to improve efficiency and scalability.

• Knowledge transfer to similar decarbonisation projects across Europe.

Global consultancy ARUP will oversee pre-project planning (FEED), working closely with MHP and alliance partners to ensure successful execution. HyLion’s recognition within the Scottish Government’s ‘Green Investment Portfolio’ highlights its strategic importance. This status is awarded only to projects that align with Scotland’s hydrogen strategy, demonstrate scalability, and offer economic benefits to the region.

Conclusion: A Major Step Towards Net-Zero Supply Chains

With a strong foundation, committed partners, and cutting-edge technology, the HyLion network is positioned to become a key driver of sustainable energy solutions in Europe. This initiative will not only reduce carbon emissions across industries but also pave the way for future advancements in CO₂-reduced fuels. By harnessing Scotland’s renewable energy potential, HyLion is set to become a leading model for green hydrogen and e-methanol production, supporting the UK and Europe’s journey towards a net-zero future.