Norwegian has teamed with Norsk e-Fuel to build a production plant, while Wizz Air says it is investing £5 million ($5.5 million) in biofuel company Firefly, which plans to make sustainable aviation fuel (SAF) from sewage.
The announcements come as European lawmakers try to iron out the final details of the ReFuelEU legislation that is set to map out SAF blending mandates for airlines.
Final talks among members of the European Council, the European Parliament, and the European Commission (EC) on ReFuelEU are set to take place in Brussels April 25.
Under ReFuelEU, the EU plans to increase SAF mandates and sub-mandates for e-fuels gradually; it is an important part of the aviation segment of the overall Fit for 55 climate legislation the EC presented almost two years ago, and which is aimed at mapping strategy for reducing emissions by 55% by 2030.
E-fuels, or synthetic fuels, are manufactured using captured carbon dioxide and green hydrogen. Legislators will be trying to bridge the gap between France, which wants nuclear-power-generated synthetic fuels to be included in the ReFuelEU acceptable list, and Germany, which does not.
Norwegian says the world’s first full scale e-fuel plant, located in Mosjøen in northern Norway, will produce SAF and help the airline reach its target of a 45% emission reduction by 2030.
The plant is expected to start producing e-fuels as early as 2026, and Norwegian should be able to to secure around 20% of its SAF needs through 2030, the airline says. Norwegian plans to invest more than NOK50 million ($4.7 million) for a minority stake in the company.
The detailed agreement is due to be finalized in the coming months.
Mosjøen has some of the lowest electricity prices in Europe as well as stable access to renewable energy in the form of hydropower. It provides a competitive advantage in the production of e-fuels, the partners said.
Norwegian CEO Geir Karlsen says, “We are moving Norwegian into the future. E-fuels can become a gamechanger for aviation. The partnership with Norsk e-Fuel is a landmark agreement for Norwegian, but also a milestone for aviation in Norway.”
“Sustainable aviation fuels need to become both more available and less expensive,” Karlsen adds. “To make this a reality, the aviation industry will depend on collaborating with public authorities to close the price gap between fossil fuels and e-fuels. Ultimately, e-fuels will be able to compete with and replace fossil fuels. Time is crucial and we are very eager to get started.”
Wizz Air says the move is its first equity investment in SAF research and development, and the partnership will allow the airline to supply SAF to its UK operations beginning in 2028, for up to 525,000 metric tons over 15 years. The agreement has the potential to save 1.5 million metric tons of CO2 equivalent, Wizz Air says.
Firefly specializes in a process under which sewage sludge, a low-value waste product, is converted into SAF. With more than 57 million metric tons of sewage sludge produced in the UK each year, the company sees the potential to produce 250,000 metric tons of SAF.
Firefly aims to have its first commercial plant operating within five years.
Wizz Air says the move, part of its broader sustainability strategy, will drive its commitment to reducing its carbon emissions per passenger-kilometer by 25% by 2030.
