Norwegian has entered a partnership with Norsk e-Fuel to build the world’s first full scale e-fuel plant in Mosjøen, Norway. The plant will produce sustainable aviation fuels (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 favour of a more sustainable aviation industry. The parties aim to finalise the detailed agreement within the next few months.
“We are moving Norwegian into the future. 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. E-fuels can become a game-changer 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,” said Geir Karlsen, CEO of Norwegian.
The goal is to start producing e-fuels 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 NOK 50 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. To make this a reality, the aviation industry depends on collaborating with public authorities to close the price gap between fossil fuels and e-fuels. Ultimately, e-fuels will be able to compete with and replace fossil fuels. Time is crucial and we are very eager to get started,” said Karlsen.
Full scale e-fuels production facility
Norsk e-Fuel looks to accelerate the industrialisation of e-fuel 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 e-fuels 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 e-fuels. Mosjøen has a port and rail infrastructure as well as a long-standing processing industry tradition.
“Today, we are announcing a partnership that will take a leading role in the transition to sustainable aviation. 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,” said Lars Bjørn Larsen, CCO of Norsk e-Fuel.
By teaming-up with Norsk e-Fuel, a local producer of e-fuels, 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. 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, whilst 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,” said Karlsen.