Norwegian Air Shuttle yesterday announced a new partnership with Norsk e-Fuel, founded in 2019 to boost the production of sustainable aviation fuel (SAF). They plan to finalise the detailed agreement in the coming months.
Norwegian will collaborate on the construction of a large-scale SAF production plant
Under the agreement, the parties will work on the construction of the first large-scale fuels plant of its kind. The facility will be located in Mosjøen, Norway. The area offers some of the lowest electricity prices in Europe, as well as stable access to renewable energy from hydropower plants.
Both companies plan to start producing fuel in 2026. According to Norwegian in a press release, the partnership will guarantee the supply of approximately 20% of its demand for SAF by the end of the decade.
The airline has stated that it aims to reduce its emissions by up to 45% by 2030, so securing long-term sustainable fuel supply is important to its intentions.
Aviation’s transition to alternative fuels
«Our sector contributes to great value creation, both socially and economically, and we commit to significantly reducing our climate impact as we take advantage of technological advances within aviation fuel», said Geir Karlsen, CEO of Norwegian. «The partnership with Norsk e-Fuel is a landmark agreement for Norwegian, but also a milestone for aviation in Norway», he added.
Karlen argued that «sustainable aviation fuels need to become both more available and less expensive». In that sense, he remarked that the industry depends on collaboration with public authorities to narrow the price gap between these alternatives and conventional fuel.
«Today, we are announcing a partnership that will take a leading role in the transition to sustainable aviation», said Lars Bjørn Larsen, CCO of Norsk e-Fuel, who referred to the agreement as «quite unique». He also highlighted Norwegian’s intention to reduce its greenhouse gas emissions and said it is «a role model for the aviation industry».
