Decarbonization of Aviation: Norsk e-Fuel Concludes Central Offtake And Investment Agreements For Ramp-up of e-Fuels Production

Frankfurt am Main, Germany - E-fuel project developer Norsk e-Fuel has signed several key partnerships and significant offtake and investment agreements.

Under the agreements, passenger airline Norwegian Air Shuttle and cargo airline Cargolux Airlines International S.A. commit to purchase fossil free aviation fuel made out of green hydrogen and CO₂ from Norsk e-Fuel. The total volume of e-SAF (Sustainable Aviation Fuel) of the offtake agreements covers more than 140.000 tons of fuel supply.

Norwegian will also join the Norsk e-Fuel group of companies, which will be led with immediate effect by existing shareholder and equipment manufacturer Paul Wurth, a subsidiary of SMS Group. Norsk e-Fuel was strategically advised on the structuring of the offtake and investment agreements by the German consulting firm Capcora.

By securing long-term purchase agreements with Norwegian and Cargolux and strengthening the shareholder group around Paul Wurth, Norsk e-Fuel has reached important milestones. The company plans to start industrializing e-fuel production at its site in Mosjøen, Norway. From 2026, e-Fuels will be supplied to the aviation industry. Supported by a network of shareholders and partners, the company plans to expand production by two more plants by 2030.

"the commitment of our new partners Cargolux and Norwegian and the reaffirmed support of the founding member and shareholder Paul Wurth 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"; said Karl Hauptmeier, CEO of Norsk e-Fuel.

"We are delighted to have provided strategic advisory to Norsk e-Fuel in structuring the offtake and investment agreements. The offtake agreement is crucial for the project's route to bankability, serving as a foundation to secure approximately €400 million in equity and debt in the months ahead and next year", comments Henning Prigge, Director at Capcora on the agreements.

Norsk e-Fuel was founded in 2019 to drive the transition to renewable aviation by establishing the industrial production of sustainable fuels based on CO₂ and water. With the support of strategic investors and carefully selected partners, Norsk e-Fuel is set to bring power-to-liquid production to industrial scale. As a project developer, Norsk e-Fuel is building large-scale production facilities to to deliver synthetic fuels to the aviation industry.

Source: IWR Online, 24 Jan 2024