Arauco, Copec and Abastible have formalized a collaboration agreement to officially launch the SynFuels Biobío project. Led by Bioforest, Arauco’s research and innovation center, the initiative aims to validate at pilot scale the production of low-carbon-footprint synthetic fuels, or e-fuels, from green hydrogen and biogenic CO2 generated during the pulp manufacturing process.
A pilot backed by Corfo
The project receives support from Corfo, Chile’s economic development agency, through its technology program for the use and adoption of hydrogen in the country’s industry, designed to accelerate the validation of new technologies for the energy transition. Similar to other CO2 valorization initiatives in industry, such as Le Royaume-Uni autorise le captage de CO2 à l’usine de méthanisation de Deeside, SynFuels Biobío seeks to demonstrate the technical viability of carbon capture and transformation at industrial scale. The pilot site will be installed at Planta Arauco, in the Biobío region, where, according to the three companies, internationally uncommon conditions converge: availability of biogenic CO2, renewable energy and industrial infrastructure within the same area.
These conditions would allow this type of solution to be developed and validated under real operating conditions. According to Arauco, Copec and Abastible, the project opens a new innovation frontier for the forestry and energy industry, building on resources already present in the region.
Decarbonizing hard-to-electrify uses
SynFuels Biobío addresses an identified challenge of the energy transition: certain sectors, such as heavy, maritime and air transport, will remain dependent on high energy-density fuels that are difficult to replace through direct electrification. The pilot involves capturing biogenic CO2 from the pulp production process, combining it with green hydrogen produced from demineralized water and renewable electricity, then transforming it through advanced processes into synthetic fuels and other value-added products. All of the pilot’s energy needs will be met with renewable-origin energy, according to the companies.
The initiative should also make it possible to explore, in later stages, new production pathways for low-carbon-footprint synthetic fuels, such as synthetic sustainable aviation fuel (eSAF) and synthetic liquefied gas (e-GL). Rather than aiming for large-scale production at this stage, the pilot primarily seeks to generate technical learning, reduce risks, build local capabilities and evaluate future industrial developments linked to sustainable fuels.
A collaboration between three Chilean groups
The agreement consolidates the joint work of Arauco, Copec and Abastible, which combine their forestry, energy, industrial and technological capabilities. Empresas Copec recently gave its institutional backing to the project’s progress, reinforcing a collaboration aimed at developing new energy solutions from Chile.
The three companies emphasize that SynFuels Biobío aims to demonstrate that it is possible to produce low-carbon-footprint synthetic fuels from green hydrogen and biogenic CO2 generated during pulp production, leveraging existing industrial infrastructure and renewable resources available in Chile. The project positions the Biobío region as a real-world laboratory for the technologies set to define the energy transition of the coming decades, according to the groups.
