Can E-Fuels Take Off? HSBC Thinks Texas Holds the Key

HSBC finances Project Roadrunner in Texas, signaling e-fuels are bankable as construction moves toward 2027 launch

25 Jun 2025

HSBC has committed financing to Project Roadrunner, a synthetic fuels facility under construction in Pecos, Texas, in one of the first cases of a commercial bank backing large-scale e-fuels in the US. The move is seen as a signal that institutional finance is beginning to flow into the sector, which has until now relied on government support and venture funding.

The project will produce synthetic aviation fuel and low-carbon diesel by combining renewable electricity with captured carbon dioxide. The fuels are designed to work with existing aircraft and trucks, offering a near-term option for industries under pressure to cut emissions. Operations are scheduled to begin in 2027.

HSBC is acting as sole lead arranger, letter-of-credit issuing bank, collateral agent and lender for the deal - an unusually consolidated role in an early-stage project. Equity investors already include Brookfield Asset Management and Breakthrough Energy Catalyst, but HSBC's involvement is seen as a turning point for the sector.

"The fact that a top-tier commercial bank is financing an e-fuels project in the US shows the sector has crossed a critical threshold," said an aviation consultant. Airlines facing tightening sustainability rules are expected to monitor the project closely, since long-term supply of low-carbon fuels will be central to meeting federal targets.

Analysts note that hurdles remain, particularly around production costs and securing steady supplies of renewable energy and captured CO₂. Supporters argue that scale and replication of projects such as Roadrunner could reduce costs and encourage wider adoption.

For the US aviation and transport sectors, the project represents a shift from concept to commercial application. HSBC's backing provides a potential model for financing similar facilities, as the industry moves toward carbon-neutral fuels by the end of the decade.