Norwegian has bought a share of green fuel company Norsk e-Fuel, expanding on their existing partnership supporting the construction of an electrofuel production facility in Norway. 

The Scandinavian airline will gain early access to Norsk’s fossil free jet fuel as a result of the Nkr12m ($1.3m) sale, supporting its goal to reduce emissions by 45% by 2030 and meet Norwegian and EU requirements on the use of sustainable fuels. 

Norwegian CEO Geir Karlsen said: “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. 

“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.” 

As part of the agreement, Norwegian will take delivery of more than 7,000 metric tonnes of electrofuel per year from Norsk’s first factory in Mosjøen when it opens after 2026, increasing to 29,000 if the company’s next two factories come online and a further Nkr45-50m investment by the airline at the next stage of the project. 

In addition to Norwegian’s investment into the company, Norsk also announced that Luxembourg cargo airline Cargolux had also signed a long-term fuel offtake agreement and will also support plans to launch another two electrofuel factories by 2030. 

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By GlobalData

Karl Hauptmeier, CEO of Norsk e-Fuel, said: “We have ambitious plans to ramp up e-Fuel production as soon as possible to deliver fossil-free fuels to the aviation industry. 

“The commitments 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.” 

Norsk’s electrofuel is made from a process using captured CO2 and power to liquid technology that compromises the whole carbon cycle, meaning while CO2 is released into the atmosphere during its use in aircraft engines, there is no additional CO2 released from fossil sources. 

Norwegian’s investment is just part of an increased interest in alternative aviation fuels by airlines that operate within the EU, after the European Parliament approved a plan requiring 70% of aviation fuel available at airports in 2050 to be sustainable aviation fuel, half of which will be synthetic fuels like electrofuel.