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Norwegian partners with Norsk e-Fuel to build new SAF plant in Norway

Larsen, left, and Karlsen met at Norwegian's headquarters to sign the partnership agreement. (Photo: Norwegian)

Norwegian has announced a landmark partnership with Norsk e-Fuel to build what Norwegian said will be “the world’s first full-scale eFuels plant” in Mosjøen, Norway.

The plant will produce sustainable aviation fuel (SAF), marking an important milestone towards Norwegian’s target of 45 percent emissions reduction by 2030.

Norwegian has signed a strategic partnership agreement with Norsk e-Fuel with the ambition to secure long-term offtake of SAF and an equity stake in the company.

The partnership will contribute to speeding up the production and availability of SAF in favor of a more sustainable aviation industry.

The parties aim to finalize the detailed agreement within the next few months.

“We are moving Norwegian into the future,” said Geir Karlsen, CEO of Norwegian. “Our sector contributes to great value creation, both socially and economically, and we commit to significantly reducing our climate impact as we take advantage of technological advances within aviation fuel. eFuels can become a gamechanger for aviation. The partnership with Norsk e-Fuel is a landmark agreement for Norwegian, but also a milestone for aviation in Norway. It helps us move closer to the promise we have given our customers. We want to make it possible for everyone to fly sustainably.”

The goal is to start producing eFuels in Mosjøen in northern Norway as early as 2026.

The partnership with Norsk e-Fuel is estimated to secure approximately 20 percent of Norwegian’s total demand for SAF until 2030.

In addition, Norwegian will invest more than USD$4.7 million for a minority equity stake in the company.

These measures will contribute to reaching Norwegian’s goal of a 45 percent emission reduction by 2030.

They also positively impact the European aviation industry’s goal of net-zero CO2 emissions by 2050.

“Sustainable aviation fuels need to become both more available and less expensive,” Karlsen said. “To make this a reality, the aviation industry depends on collaborating with public authorities to close the price gap between fossil fuels and eFuels. Ultimately, eFuels will be able to compete with and replace fossil fuels. Time is crucial and we are very eager to get started.”

Norsk e-Fuel looks to accelerate the industrialization of eFuel production starting in Northern Norway.

The Norwegian project developer is backed by a strong group of shareholders consisting of technology pioneers and industrial experts.

The company’s first production facility will be located in Mosjøen in Northern Norway. It will become the world’s first full scale eFuels production facility.

The area has some of the lowest electricity prices in Europe as well as stable access to renewable energy from hydropower. This provides a considerate competitive advantage, as electricity constitutes a significant cost element in the production of eFuels.

Mosjøen has a port and rail infrastructure as well as a longstanding processing-industry tradition.

“Today, we are announcing a partnership that will take a leading role in the transition to sustainable aviation,” said Lars Bjørn Larsen, chief commercial officer of Norsk e-Fuel. “This is quite unique. With its ambitions to reduce CO2 emissions, Norwegian is a role model for the aviation industry. We are looking forward to many more joining us on the journey.”

By teaming-up with Norsk e-Fuel, a local producer of eFuels, Norwegian wants to speed up the transition from fossil to alternative fuels. The partnership with Norsk e-Fuel offers early and long-term access to much-needed sustainable aviation fuel.

“The country of Norway depends on a strong, future-proof aviation industry,” Karlsen said. “Our partnership with Norsk e-Fuel is a historic step for Norwegian as an airline. We are actively supporting the Norwegian processing industry and contributing to local economic growth, while at the same time taking a major leap towards making sustainable air travel a reality. To us, this marks the beginning of a new era, and we will consider entering into several future partnerships to achieve our climate goals.”

eFuels are a class of synthetic fuels that are manufactured using captured carbon dioxide, together with green hydrogen obtained from sustainable electricity sources.

For the production of eFuels, the facility will use 100 percent renewable energy, water and recycled biogenic CO2 and CO2 from direct air capture and turn them into sustainable fuels. The final product reduces greenhouse-gas emissions by 99 percent compared to fossil fuels.


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