Low-cost carrier Norwegian has taken a stake in Norsk e-Fuel, firming an agreement under which it would become a shareholder in the firm planning to develop production of sustainable fuel plant in Norway.

Norwegian last April signed a strategic partnership with Norsk e-Fuel to build what it says is the world’s first large-scale production facility for electrofuel.

Norsk e-Fuel aims to begin construction on its Mosjoen plant this year and to start full-scale production from 2026, while it has also identified further locations for production facilities.

Norsk e-Fuel Plant Model_lanscape

Source: Norsk e-Fuel

Norsk e-Fuel is aiming to begin construction on its first sustainabile aviation fuel plant in Mosjen in 2024

Norwegian does not specify the size of the stake it has taken – it has previously indicated interest in a minority shareholding –  but says under the first phase it has invested NKr12 million ($1.6 million) and will put in a further NKr45-50 million at the next project milestone. 

The airline says this secures it more than 7,000t of fuel per year from the first factory – an amount it says equates to transporting a little less than half the passengers it carries annually between Olso and Bodo. It aims to increase volumes to 29,000t annually if two further planned factories become operational.  

Norwegian chief executive Geir Karlsen says: “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.”

Norwegian has a goal of reducing carbon emissions by 45% by 2030.