Syntholene Technical Review Report
Technical Review from KBR Highlights the Advantages of Syntholene's Geothermally Integrated Solid Oxide Electrolyzer Cells for Step Change Reduction in Hydrogen Cost
Chicago, Illinois -- Syntholene Energy Corp. (TSXV: ESAF) (FSE: 3DD0) (OTCQB: SYNTF) ("Syntholene" or the "Company") announced today an independent technical and economic review evaluating Syntholene's geothermal-integrated hydrogen production platform and its potential application to low-carbon fuels, including synthetic sustainable aviation fuel ("eSAF").
Kellogg Brown and Root LLC (NYSE: KBR) ("KBR") was engaged by the Company to provide an analysis and opinion of high level technical and cost review of the Company's hydrogen technology that can be applied to eSAF deployments (the "Report"). The Report assessed Syntholene's levelized cost of hydrogen ("LCOH") methodology and conducted sensitivity analysis across key cost variables. KBR concluded that Syntholene's likely LCOH is approximately US$1.75/kg H2 under best-case Iceland geothermal scenarios and approximately US$2.10/kg H2 under broad deployment.
Hydrogen is the dominant cost in synthetic aviation fuel production (IEA), and generating it at low cost is central to achieving cost competitive synthetic fuel. Recent unsubsidized estimates of comparable green hydrogen price averages across Europe were ~€$6.71/kg H2 ($US7.66) (EHO).
Notably, Syntholene's LCOH target is lower than the most recent regionally comparable European benchmark for unabated fossil hydrogen produced with traditional Steam Methane Reforming ("SMR"), of which the European Hydrogen Observatory stated "the levelized production costs of hydrogen by SMR in Europe were, on average, ~€3.33/kg H2 (US$3.80) of hydrogen. (EHO)" when including the current cost of the European Carbon Price (ETS), this fossil derived Hydrogen benchmark increases the cost of SMR with carbon capture to ~€4.12/kg H2 (US$4.70).
The review further states that successful operation at Syntholene's demonstration facility in Húsavík, Iceland (the "Demonstration Facility") would provide key operating data related to efficiency, thermal integration, reliability and stack degradation.
The findings in the Report are based on a number of key assumptions using modelling and sensitivity analysis rather than commercial operating data or executed contracts. These assumptions include the Company's access to advantaged geothermal resources and successful thermal integration. In addition, Syntholene's LCOH estimate was based on 1200 kW size with US$1.2 million of capital expenditures, and an assumed electricity price of US$30/MWh. The Report also identifies primary risks, including electricity price variability, long-duration SOEC degradation, stack life assumptions, project-specific capital cost, and operating cost validation.
The Report identified several potential technical and commercial differentiators for Syntholene, including:
Integration of low-carbon geothermal electricity and thermal energy;
Reduced electrical intensity through SOEC operation and heat recovery;
Integration advantages with eSAF configurations, including heat and utility integration;
Mitigation strategies for geothermal silica scaling through indirect fluid handling and binary-cycle-style heat exchange design; and
Extension of SOEC stack operating life through dynamic AC:DC operation approach.
"Syntholene's core thesis is that low-cost synthetic fuel production starts with low-cost clean hydrogen, and that the lowest-cost clean hydrogen will come from systems that intelligently use both electricity and heat," said Dan Sutton, Chief Executive Officer of Syntholene. "The report identifies the major cost drivers, validates the importance of our now-operating Húsavík Demonstration Facility, and reinforces why geothermal colocation can be a structural advantage in synthetic fuel production."
KBR was engaged as an independent third-party technical consultant and was paid a fixed fee for its assessment and the preparation for the Report. KBR did not receive any securities of the Company as compensation for its services.
If you are interested in receiving a copy of the Report, please contact the Syntholene at comms@syntholene.com.
Report Executive Summary
KBR was engaged to conduct a high-level technical and economic review of Syntholene’s hydrogen production technology and its potential application to low-carbon fuels, including eSAF (Sustainable Aviation Fuel produced primarily with electricity)
Syntholene’s approach combines geothermal energy integration with Dynelectro’s solid oxide electrolysis cell (SOEC) system (stacks provided by SolydEra) to improve electrical efficiency and overall process integration (versus conventional electrolysis). The concept leverages two key differentiators, indirect geothermal heat integration and Dynelectro’s Dynamic Electrolyzer Unit (DEU) with AC:DC operation intended to mitigate stack degradation over time
The recently commissioned Húsavík demonstration project represents an important scale-up and technology validation step, with continued operation of a ~250 kWe SOEC system for targeting >1,000 operating hours under integrated geothermal conditions. Successful operation for 1000hrs will support progression of the technology toward an estimated TRL 7 (Technology Readiness Level) and provide key operating data related to efficiency, thermal integration, reliability, and stack degradation
Assuming access to advantaged geothermal resources and successful thermal integration, Syntholene estimates electrical consumption as low as ~36.8 kWh/kg H₂, representing an estimated 25–30% reduction in electricity demand (relative to conventional electrolysis)
KBR’s review identified several potential technical and commercial differentiators:
Integration of low-carbon geothermal electricity and thermal energy
Reduced electrical intensity through SOEC operation and heat recovery
Potential integration advantages with eSAF configurations (heat/utilities)
Mitigation strategies addressing geothermal silica scaling through indirect fluid handling (e.g. binary-cycle-style heat exchange design)
Extension of SOEC stack operating life through Dynelectro’s dynamic AC:DC operation approach
Residual risks and future next steps include
Electricity price variability remains the largest LCOH (Levelized Cost Of Hydrogen) sensitivity factor
Long-duration SOEC degradation and stack life assumptions backed up by full-scale operating validation
Conclusion
Syntholene’s coupling of higher efficiency solid oxide electrolysis technology (~36.8 kWe/kg H2) with geothermal energy presents a differentiated, pre-commercial hydrogen platform with potential for hydrogen production costs at approx. USD 1.75/kg H2 (using Syntholene’s LCOH methodology at USD 30/MWh of electricity) in regions with ready access to geothermal resources such as Iceland. Strong thermal integration synergies with fuel synthesis routes such as Methanol-to-Jet or Fischer Tropsch create the potential for eSAF production that are compelling vs conventional SAF pathways. Successful demonstration of stack durability, efficiency retention, and integrated geothermal operation at Húsavík will be a critical step forward in the deployment journey.
About KBR
KBR delivers science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 36,000 people worldwide with customers in more than 85 countries and operations in over 28 countries. KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.
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About Syntholene
Syntholene is actively commercializing its novel Hybrid Thermal Production System for low-cost clean fuel synthesis. The target output is ultrapure synthetic jet fuel, which the Company seeks to manufacture at 70% lower cost than the nearest competing technology today. The Company's mission is to deliver the world's first truly high-performance, low-cost, and carbon-neutral synthetic fuel at an industrial scale, unlocking the potential to produce clean synthetic fuel at lower cost than fossil fuels, for the first time.
Syntholene operates the world's first geothermally-integrated high temperature electrolysis demonstration facility in Husavik, Iceland.
Founded by experienced operators across advanced energy infrastructure, nuclear technology, low-emissions steel refining, process engineering, and capital markets, Syntholene aims to be the first team to deliver a scalable modular production platform for cost-competitive synthetic fuel, thus accelerating the commercialization of carbon-neutral eFuels across global markets.