Norwegian partners with Norsk e-Fuel to build e-fuel plant

Norwegian, the largest Norwegian airline and one of Europe’s leading low-cost carriers, has announced a landmark 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% 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.

“E-fuels 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,” 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% of Norwegian’s total demand for SAF until 2030. In addition, Norwegian will invest more than NOK50 million (USD4.7 million) for a minority equity stake in the company. 

“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.

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. Mosjøen in Northern Norway 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.