Nordic Electrofuel, P2X-Europe sign term sheet for production, commercialization of eSAF

Photo: P2X-Europe

Following extensive negotiations and cooperation that started last year, Norwegian Nordic Electrofuel (NEF) and German P2X-Europe, a joint venture of Mabanaft GmbH & Co. KG (Mabanaft) and H&R Group, signed a term sheet June 23 that formally lays the foundation for the production and commercialization of synthetic fuels, with a clear focus on eSAF (electricity-generated sustainable aviation fuel).

The agreement between the two companies foresees the production and long-term offtake of sustainable fuels from green hydrogen and captured CO2, using the power-to-liquid pathway.

In a joint approach, NEF plans to produce synthesis-based raw materials for the aviation and chemical industry at large scale from 2026 in Norway, while P2X will further upgrade those syncrudes into eFuels such as eSAF and other synthetic and sustainable products.

The final synthetic products will then be marketed to end-users through parent companies Mabanaft Group with its expertise in liquid fuels and H&R Group as an expert in specialty chemical products.

For the first time, the PtL project developer P2X is committed to also take on the offtaker role by purchasing PtL-derived syncrude, aiming at accelerating the ramp-up of low-carbon energy production.

The initial stage of the project estimates a production capacity of 8,000 metric tons of synthetic hydrocarbons per year, ready to be refined into sustainable fuels, with a considerable production ramp-up planned in the following years.

The production site will be located at Herøya industrial park, Prosgrunn, about 150 kilometers southwest of the Norwegian capital Oslo.

“The agreement reached with P2X marks a quantum leap for Nordic Electrofuel,” said Nordic Electrofuel CEO Gunnar Holen. “It greatly improves the needed bankability for us with secured long-term offtake for our products and enables us to reach the markets for NEF’s products in volumes. P2X is a perfect partner, since it will do the upgrading and brings the downstream part, which is complementing our business. NEF has over a long time enjoyed a strong relationship with P2X and its sponsors, which have made this process towards the agreement easier. We also expect to sign subsequent agreements between the parties for future plants.”

Detlev Woesten, CEO of P2X-Europe and chief sustainability officer at H&R, added, “P2X-Europe is expanding its business to most attractive regions in Europe, starting at the Iberian Peninsula now including Scandinavia. The project will further nourish the extensive know-how of P2XEurope, a global pioneer in PtL project development and technology configuration, backed by its strongly representable reference projects of its parent companies. The strategic partnership positions P2X’s parent company Mabanaft Group to increase market supplies of nonfossil, green jet fuel for the aviation industry.”

Volker Ebeling, executive director of P2X-Europe and senior vice president of new energy, chemicals and gas at Mabanaft, stated, “This marks another significant milestone as we constantly expand our sustainable-product offering, in this case for our aviation customers. With Nordic Electrofuel we have an innovative partner for power-to-liquid solutions on our side, fostering another European strategic partnership for the production of green molecules at scale.”

According to the long-awaited ReFuelEU Aviation draft regulation presented by the EU Commission, an initial blending quota of renewable fuels as of 2025 and a specific quota for eSAF from 2030 is required.

The quota finally establishes the legal framework for the eSAFfmarket and is a clear call for action—for aviation as well as for future PtL producers and fuel suppliers.