Hydrofaction · Project

Turning Forestry Waste into Drop-In Renewable Fuel Oil for Refineries and Shipping

energyPilotedTRL 8

Imagine taking leftover wood chips and agricultural waste — stuff nobody wants — and cooking it under extreme pressure and heat in water, much like a giant pressure cooker. What comes out the other side is an oil that looks and behaves a lot like crude petroleum. You can burn it directly for heat and power, use it as low-sulphur marine fuel, or send it to a regular oil refinery to make diesel or jet fuel. The Danish company behind this built a working pilot plant and was scaling it up to produce thousands of tonnes of this renewable oil per year.

By the numbers

5,000 fuel tonnes

Demonstration plant annual export capacity

50,000 fuel tonnes

Full-scale commercial module capacity

100x

Scale-up factor from pilot to demonstration plant

EUR 1,841,816

EU contribution to the project

TRL 6 to 8

Technology readiness advancement

The business problem

What needed solving

Refineries and fuel buyers face growing mandates to include renewable content in their fuel mix, but most biofuel technologies require entirely new infrastructure or compete with food crops. Shipping companies are hit especially hard by low-sulphur fuel regulations that drive up costs. There is a gap for a drop-in renewable fuel that works with existing refinery equipment and uses cheap, abundant waste biomass as feedstock.

The solution

What was built

Steeper Energy built and operated a pilot-scale Hydrofaction plant, then designed a demonstration plant 100 times larger with 5,000 fuel tonne annual capacity. They produced and certified Hydrofaction Oil from multiple commercial feedstocks, and created a demonstration video showcasing the technology. The project delivered 4 deliverables total including oil quality testing at certified laboratories.

Audience

Who needs this

Oil refineries adding renewable fuel capacityShipping companies needing low-sulphur marine fuelForestry companies monetizing wood residualsDistrict heating operators seeking renewable CHP fuelAviation fuel suppliers exploring sustainable jet fuel pathways

Business applications

Who can put this to work

Oil Refining

enterprise

Target: Petroleum refineries looking to add renewable fuel to their product mix

If you are a refinery operator facing tightening renewable fuel mandates — this project developed Hydrofaction Oil, a biomass-derived crude substitute that can be upgraded to diesel or jet fuel using your existing refinery infrastructure. The demonstration plant was designed for 5,000 fuel tonne export capacity, with full-scale commercial modules targeting 50,000 fuel tonnes. This means you can blend renewable content without building new processing lines.

Maritime Shipping

enterprise

Target: Shipping companies needing low-sulphur marine fuel alternatives

If you are a shipping company struggling with IMO sulphur regulations and rising costs of compliant fuels — Hydrofaction Oil was specifically tested as a substitute for low-sulphur marine diesel. The technology converts low-cost non-food biomass into a petroleum-like oil, potentially giving you a renewable fuel source that meets emission rules. Commercial modules are designed at 50,000 fuel tonne capacity, relevant for fleet-scale supply.

Forestry & Biomass

mid-size

Target: Forestry companies or biomass aggregators with residual waste streams

If you are a forestry or biomass company sitting on large volumes of wood residuals with limited market value — this technology can convert your waste feedstock into sellable fuel oil. Steeper Energy tested Hydrofaction with feedstocks provided by potential commercial partners and certified the resulting oil quality. The demonstration plant is approximately 100 times larger than the pilot facility, built to prove the economics at near-commercial scale.

Frequently asked

Quick answers

What does the technology cost to implement?

The EU contributed EUR 1,841,816 to advance Hydrofaction from TRL 6 to TRL 8. The project focused on lowering risks associated with future commercial plant performance, but specific capital costs per plant are not disclosed in the available data. The business model targets licensing the technology to operators rather than direct plant sales.

Can this work at industrial scale?

Yes, the project was specifically designed for scale-up. The demonstration plant is approximately 100 times larger than the existing pilot facility, with a 5,000 fuel tonne annual export capacity. Full-scale commercial plants are envisioned as 50,000 fuel tonne export modules.

How does the IP and licensing work?

Hydrofaction is proprietary technology owned by Steeper Energy ApS. The commercialization model is based on licensing — the project explicitly mentions advancing relationships with licensees and technology users. Key milestones included signed LOIs and MOUs with business partners.

What feedstocks can it handle?

The technology uses renewable low-cost non-food feedstocks, including biomass residuals from forestry. During the project, Hydrofaction Oil was produced from feedstocks provided by potential commercial partners and tested at certified laboratories, demonstrating flexibility across biomass types.

What regulations does this address?

Hydrofaction Oil can serve as low-sulphur marine diesel substitute (relevant to IMO 2020 sulphur cap regulations) and can be upgraded to renewable diesel or jet fuel via traditional refineries, supporting renewable fuel blending mandates. The oil was tested at certified laboratories to validate quality specifications.

How mature is the technology?

The project moved the technology from TRL 6 to TRL 8 — meaning it went from a validated system to a near-complete system demonstrated in an operational environment. Steeper Energy had an existing pilot facility and designed a demonstration plant 100 times larger. Based on available project data, the focus was on de-risking commercial deployment.

Consortium

Who built it

This is a single-company project — Steeper Energy ApS, a Danish SME, was the sole partner. That means 100% industry participation with no academic or research institute involvement, which is typical for SME Instrument Phase 2 projects focused on commercialization rather than basic research. The company received EUR 1,841,816 in EU funding. The absence of consortium partners means all IP stays with one entity, simplifying licensing negotiations for potential buyers. However, it also means the technology validation was done internally rather than independently verified by a university or research center.

STEEPER ENERGY APSCoordinator · DK

How to reach the team

Steeper Energy ApS (Denmark) — contact via company website or SciTransfer can facilitate introduction

Order a report on this consortium See STEEPER ENERGY APS profile →

Next steps

Talk to the team behind this work.

Want to evaluate Hydrofaction for your fuel supply chain or refinery operations? SciTransfer can arrange a technical briefing with the development team and assess fit for your specific feedstock and fuel requirements.

Order a report on this topic More in Energy & Climate