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Norwegian is now a shareholder in Norsk e-Fuel. The company will establish what could be the world’s first large-scale production facility for electro-fuel. The partnership will give Norwegian early access to essential fossil-free aviation fuels.
In 2023, Norwegian and Norsk e-Fuel signed a strategic partnership agreement to build the world’s first large-scale production facility for electro-fuel in Mosjøen, northern Norway. Electro-fuel, often called e-fuel, is a fossil-free aviation fuel that can be used in today’s aircraft. The partnership is an important step towards Norwegian’s goal of reducing emissions by 45% by 2030.
“This agreement marks the start of a pioneering partnership that will accelerate the transition to fossil-free fuels in aviation and give us access to a product that will be available in limited quantities,” said Geir Karlsen, CEO, Norwegian. “Increased production of this type of fuel is essential in the years to come if we are to succeed in the transition to more sustainable aviation. I am very pleased that we have the resources, expertise and technology to do this with Norsk e-Fuel in Norway, and that together we can contribute to the development of a new industry in Norway and create local jobs.”
The partnership agreement with Norsk e-Fuel secures Norwegian an ownership interest in the company and long-term access to fossil-free aviation fuel. In the first phase, Norwegian has invested more than NOK 12 million, and will invest a further NOK 45-50 million at the next milestone in the project. This secures Norwegian more than 7,000 metric tonnes of fuel per year from the first factory, and volumes could increase to 29,000 metric tonnes annually if the next two planned factories become operational.
“We have ambitious plans to ramp-up e-Fuel production as soon as possible to deliver fossil-free fuels to the aviation industry,” said Karl Hauptmeier, CEO, Norsk e-Fuel. “The commitment of Norwegian and our new partners are not only a sign of trust into our mission, our business concept and our team. They also show the understanding of the critical role of e-Fuels in shaping a future for aviation that is free from fossil fuels – both in Norway and across Europe.”