Fortum, Norsk e-Fuel announce eSAF project in Finland
Norwegian energy firm Norsk e-Fuel and Finnish state-owned energy company Fortum have agreed to reserve a 14-hectare area for a sustainable synthetic aviation fuel (eSAF) plant at the Port of Rauma in Finland.
“Fortum is committed to promoting the transition to clean energy future. We are pleased that Norsk e-Fuel is considering Rauma as the location for a new production facility. Decarbonisation is a joint effort that requires the support and commitment of all stakeholders, including local communities, industrial players, and policymakers. Our role is to support industry in reducing emissions by developing sites for investment and being a partner in energy matters,” says Urs Pennanen, senior vice president corporate customers, Fortum.
The project is Norsk e-Fuel’s first outside Norway and is part of the company’s long-term strategy to support Europe’s net-zero targets by 2050. The project is still in the early stages of development, and the company has not made a final decision on whether to invest.
Fortum and Norsk e-Fuel, together with Port of Rauma, will begin planning the area’s electrical connections and permit processes for establishing the e-fuel production facility. The plant’s annual production could reach 100m liters of liquid fuel, produced through electrolysis using clean electricity and captured carbon dioxide. Most of the production will be eSAF.
The companies said that the location of the Port of Rauma, with direct sea and rail connections and a strong industrial ecosystem, makes it an ideal location for new industrial projects.
EU regulations require aviation fuel suppliers to gradually increase the share of eSAF in conventional aviation fuel at EU airports, starting with a 1.2% blending mandate in 2030 and rising to 35% by 2050. A reliable electricity grid and access to clean electricity are essential for the electricity-intensive production of eSAF.
Earlier in April, Norsk e-Fuel announced that it has partnered with Amsterdam-based environmental commodities trading and climate solution provider STX Group to secure biogenic CO2 deliveries to future Norsk e-Fuel production sites for sites across the Nordics.
Norsk is currently working on developing Alpha Plan in Norway with a production capacity of 50m litres (40,000 tons). The construction on the plant is scheduled to begin from 2025 onwards with full-scale production likely to start in 2026.
The producer already has offtake agreements in place with two international airlines including Norwegian Air Shuttle and Cargolux Airlines International S.A from 2026 onwards.
The company is also planning to expand its SAF production beyond the Alpha site’s capacity from 2030 onwards.