Norwegian becomes shareholder in Norsk e-Fuel

Norwegian Air Shuttle ASA (Norwegian) has officially become a shareholder in Norsk e-Fuel, marking a significant milestone in its mission to establish the world's first major electro fuel production facility. This ground-breaking project will produce fossil-free jet fuel at a state-of-the-art plant located in Mosjøen, Nordland, potentially ushering in a new era of sustainable aviation. This strategic partnership grants Norwegian early access to vital fossil-free aviation fuels.

In 2023, Norwegian and Norsk e-Fuel entered into a strategic alliance with the goal of constructing a ground-breaking electro fuel production facility in Mosjøen, situated in northern Norway. Electro fuel, commonly referred to as e-fuel, represents a fossil-free aviation fuel suitable for use in today's aircraft. This partnership represents a pivotal step towards Norwegian's target of reducing emissions by 45% by 2030.

Geir Karlsen, CEO of Norwegian, expressed his enthusiasm, stating, “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. 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.”

Karl Hauptmeier, CEO of Norsk e-Fuel, echoed this sentiment, saying, “We have ambitious plans to ramp up e-Fuel production as soon as possible to deliver fossil-free fuels to the aviation industry. The commitment of Norwegian and our new partners is not only a sign of trust in our mission, our business concept, and our team. They also show an 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.”

The partnership agreement with Norsk e-Fuel secures Norwegian an ownership stake in the company and guarantees long-term access to fossil-free aviation fuel. In the initial phase, Norwegian has invested over NOK 12 million and plans to invest an additional NOK 45-50 million in the next project milestone. This ensures Norwegian a supply of over 7,000 metric tonnes of fuel annually from the first factory, with the potential for volumes to increase to 29,000 metric tonnes per year as the next two planned factories become operational. The Mosjøen facility is set to be the world's first of its kind, playing a pivotal role in accelerating the production and availability of this environmentally friendly fuel. (£1.00 = NEK13.34 at time of publication).