Hydrogen Utopia International PLC shares traded higher in Tuesday's early trade after it detailed an indicative business model for producing sustainable aviation fuel from waste plastics in the Kingdom of Saudi Arabia.
The company said the illustrative model sets out a proposed route using plasma-assisted waste-to-syngas, gas clean-up and Fischer-Tropsch upgrading. The model assumes around 200,000 tonnes per year of mixed waste plastics.
Target SAF production is 400,000 to 600,000 barrels per year. The model also includes diesel, naphtha and wax co-products. It assumes a gate fee of around US$50 per tonne, and it also assumes industrial power pricing of about US$0.06 per kWh.
Hydrogen Utopia said its indicative operating expenditure is about US$35 million per year - it lists power and utilities at US$10.5 million and oxygen supply at US$6 million.
Meanwhile, for pricing, the model uses a SAF sales price range of US$200 to US$250 per barrel, and assumes co-product pricing ranges of US$700 to US$900 per tonne for renewable diesel and naphtha and US$900 to US$1,200 per tonne for wax.
Hydrogen Utopia shows total revenue of US$105 million to US$155 million, in the base case, and shows indicative earnings (EBITDA) of US$80 million to US$130 million.
Total project capex was estimated at US$800 million. The model assumes a target carbon capture rate of about 95% of process CO₂ and captured CO₂ of about 500,000 tonnes per year.
The board said it expects a project could reach a shovel-ready stage within about 15 months, subject to due diligence, required agreements and permits and approvals.
In London, the shares were up 12%, changing hands at 3.2p each.