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Norwegian Air Shuttle Partners With Norsk e-Fuel for Construction of Electro-Fuel Facility

Norwegian Air Shuttle has partnered with Norsk e-Fuel to build the world’s first full-scale production facility for electro-fuel in Mosjøen in Northern Norway. The facility will produce SAF, and the partnership will help accelerate the carrier’s emissions reduction goals.

Norwegian and Norsk e-Fuel Partner for the Construction of Electro-Fuel SAF Facilities in Northern Norway - Courtesy Norwegian Air Shuttle

On Monday (April 24, 2023), Norwegian Air Shuttle announced the launch of a new partnership with Norsk e-Fuel to build the world’s first full-scale production facility for electro-fuel. The plant will be located in Mosjøen in Northern Norway and will produce SAF. The partnership will ensure Norwegian an ownership stake in the company, and is an important milestone on the way to the carrier’s goal of reducing emissions by 45 percent by 2030. Details of the agreement will be finalized in the coming months.

In Monday’s announcement, Norwegian’s CEO, Geir Karlsen, said,

“Norwegian is now taking a step into the future. Aviation contributes to great value creation, both socially and economically, and now we want to utilize the technological development in the production of aviation fuel to significantly reduce the climate impact of Norwegian aviation. Electric fuel can be a change of pace for our entire industry. The partnership with Norsk e-Fuel is not only central to Norwegian and our work to become more sustainable, it is also a milestone for Norwegian aviation. For us, it brings us closer to our goal of making it possible for everyone to fly sustainably.

“Sustainable aviation fuel must become both more available and less expensive. To achieve this, aviation is dependent on working with authorities to close the price gap between traditional fossil and sustainable fuels. In this way, electric fuel will be able to compete with and replace fossil aviation fuel. Time is a decisive factor, and we are very impatient to get started.”

Also commenting on the new SAF partnership, Norsk e-Fuel’s Commercial Director, Lars Bjørn Larsen, said,

“Today we are launching a partnership that will take a leading role in the transition towards sustainable aviation. This is quite unique. Norwegian is a role model for Norwegian aviation, not least because of its ambitions to reduce greenhouse gas emissions. We look forward to even more people joining us on this journey.

“Norway depends on a strong and forward-looking aviation sector. The partnership with Norsk e-Fuel is a historic step for Norwegian as an airline. With this, we actively support the Norwegian process industry and contribute to local value creation, while at the same time taking a decisive leap to make air travel sustainable in the future. For us, this marks a change of pace and we will in future consider entering into more partnerships to achieve the climate goals.”

From Left: Lars Bjørn Larsen, Commercial Director of Norsk e-Fuel and Geir Karlsen, CEO of Norwegian, meet each other for a signing at Norwegian's head office in Fornebu – Courtesy Norwegian Air Shuttle

Norwegian and Norsk e-Fuel hope to produce electro-fuel SAF at the Mosjøen facility as early as 2026. The partnership is expected to cover up to 20 percent of Norwegian’s SAF needs until 2030. Norwegian will also invest over NOK 50 million (US $4.72 million) for a minority stake in Norsk e-Fuel. The area in Northern Norway where the plant will be located has among the lowest electricity prices in Europe, as well as stable access to renewable energy from hydropower. Mosjøen also has both a port and a railway connection, in addition to long industrial traditions.

Electric-fuel is a type of synthetic fuel produced using carbon capture and green hydrogen from sustainable energy sources. Norsk e-Fuel’s facility will produce SAF which will be produced based on hydrogen, which is made from water and electricity that is fused with captured carbon dioxide. The end product reduces GHG emissions by up to 99 percent compared to traditional fossil fuel.

Source: Norwegian Air Shuttle/Mynewsdesk


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