Contributing to decarbonization at scale: connecting the building blocks of an integrated energy transition

Insights by Societe Generale experts operating across the full value chain.

From capture to transport, storage and end use, industrial decarbonization requires the alignment of multiple interdependent building blocks, often across geographies and sectors. “We have moved beyond pilot projects. The challenge now is to build scalable, repeatable models,” says Christophe Hadjal.

Decarbonization can no longer be addressed in silos. It requires an integrated approach, connecting multiple technological and industrial building blocks into coordinated industrial systems. “Value lies in the connections: transport, transformation and end use must be designed together,” adds Vincent Caufourier.

CCUS, building a new industrial backbone

Carbon capture and storage is rapidly expanding, particularly in major industrial hubs. Infrastructure for capturing CO₂ from large industrial emitters is developing, contributing to the structuring of the CCUS market and improving its ability to attract financing.

The Teesside cluster in the UK, the first large-scale financed CCUS project, marked a major milestone. “On Teesside, Societe Generale acted as Financial Advisor, Mandated Lead Arranger and Deal Contingent Hedge Provider, contributing to raising approximately GBP 8 billion in financing,” Michael de Witte explains. “Teesside was a breakthrough, it proved that CCUS can reach true bankability.”

While most captured CO₂ is expected to be permanently stored, the development of transport and storage infrastructure is also enabling the emergence of CO₂ utilization markets, supporting the production of CO₂-based products and creating additional revenue streams.

The focus is now shifting towards revenue models and volume aggregation, key conditions for scaling the sector. “Scale is critical, higher volumes reduce costs per ton and unlock new use cases,” Michael de Witte notes.

Hydrogen, a catalyst for hard-to-abate sectors

Hydrogen is becoming a lever for decarbonizing sectors where electrification is not viable. It offers solutions for industrial high-temperature processes such as chemicals and metals, as well as applications in aviation and maritime transport. Hydrogen can contribute to decarbonization through blending into existing gas networks.

Its success, however, depends on its integration into full ecosystems combining production, transport, storage and anchored demand. It also relies on the development of different production pathways, including electrolytic (produced by splitting water using electricity), green hydrogen (produced using renewable electricity) and CCUS-enabled hydrogen (produced from fossil fuels with CO₂ captured and stored). “Hydrogen is not a standalone solution, it is an energy carrier that can support multiple applications,” says Christophe Hadjal.

Societe Generale is involved in landmark projects illustrating this shift towards bankable infrastructure. “On the West Wales Hydrogen project, we acted as Joint Structuring Bank, helping bring forward one of the first hydrogen projects to reach a bankable framework supported by industrial demand and a clear policy environment,” Victor Creste highlights.

The Bank also plays a key advisory role in integrated industrial clusters. Societe Generale is acting as Financial Advisor to EET Hydrogen on the development of a large-scale CCUS-enabled hydrogen production plant in the UK, at the heart of the HyNet cluster. This project will form a core component of an integrated value chain, alongside CO₂ transport and storage infrastructure, hydrogen pipelines and storage facilities. “These projects show that decarbonization is fundamentally about industrial integration,” Christophe Hadjal emphasizes.

E-fuels and SAF, reshaping aviation

Aviation remains one of the hardest sectors to decarbonize, due to structural constraints such as energy density and safety requirements. In this context, Sustainable Aviation Fuels (SAF) are expected to play an important role in contributing to achieving net zero targets.

Within the IATA Net Zero Roadmap⁽¹⁾, SAF is identified as a key pillar through to 2050. In Europe, demand is accelerating rapidly, driven by regulatory frameworks such as the ReFuelEU Aviation regulation⁽²⁾, which mandates a minimum SAF blending rate of 6% by 2030, including 1.2% e-SAF, with targets increasing progressively to 70% by 2050, including 35% e-SAF. This is reinforced by voluntary initiatives from major airlines such as Air France-KLM, IAG, Ryanair and Wizz Air, many targeting at least 10% SAF usage by 2030. “SAF is projected to become a structural pillar of low-carbon aviation,” says Vincent Caufourier.

Alongside bio-based pathways, e-SAF is becoming prominent. Its production relies on green hydrogen and captured CO₂, highlighting strong complementarities with other decarbonization technologies. “E-fuel production illustrates how energy value chains are becoming increasingly interconnected,” Abdelhadi Benjlil adds.

Meeting this growing demand will require significant industrial investment. Societe Generale supports the structuring and financing of these projects. The Bank acted as Mandated Lead Arranger for the financing of Europe’s first dedicated greenfield bio-SAF facility, developed by SkyNRG in the Netherlands. The facility uses the HEFA (Hydrotreated Esters and Fatty Acids) pathway to convert residual fats and greases into SAF, reducing lifecycle greenhouse gas emissions by over 80% compared with conventional jet fuel⁽³⁾.

The Bank is also supporting project developers at earlier stages. “In France, Societe Generale advised Elyse Energy on the financing of the development phase of both the BioTJet SAF project and the eM Rhône e-methanol project,” Nicolas Lorinet adds. Beyond these flagship transactions, “many projects are approaching maturity, the coming years will be decisive for scaling up,”.

Orchestrating the transition

Across CCUS, hydrogen and e‑fuels, current developments indicate that decarbonization depends on interconnected value chains, requiring an approach that spans multiple stages as well as strong operational and financing capabilities. “The energy transition will be plural, no single solution will suffice,” concludes Christophe Hadjal.

In this evolving landscape, the role of financial institutions is expanding. Beyond financing, they are helping to structure ecosystems, secure business models and accelerate industrial deployment across regions.