US-headed ExxonMobil Corporation (ExxonMobil), one of the largest publicly traded international energy companies has revealed that it is acquiring a 49.9 percent stake in Biojet AS, a Norwegian biofuels company that plans to convert forestry and wood-based construction waste into lower-emissions advanced biofuels and biofuel components.
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Biofuels and biofuel components can meet the requirements for advanced fuels under Norwegian, European Union (EU), and UK regulations. According to the EU’s Renewable Energy Directive (RED), biofuels produced from wood waste can help reduce life-cycle greenhouse gas (GHG) emissions by up to 85 percent compared to petroleum-based diesel.
Founded in 2018, Biojet AS plans to develop up to five facilities to produce advanced biofuels and biofuel components from forest residues and wood waste. When produced, Biojet AS’s biofuels can be used for passenger vehicles and heavy trucks.
Additional opportunities for marine transportation and aviation may develop as the market for lower-emissions biofuels expands.
The company anticipates commercial production to begin in 2025 at the first manufacturing plant to be built in Follum, Norway. The agreement enables ExxonMobil to purchase as much as 3 million barrels of the products per year, based on the potential capacity of the five planned facilities.
The agreement with Biojet AS advances ExxonMobil’s efforts to provide lower-emissions products for the transportation sector. Using our access at the Slagen Terminal, we can efficiently distribute biofuels in Norway and to countries throughout northwest Europe, said Ian Carr, President of ExxonMobil Fuels and Lubricants Company.
Expand lower-emission solutions portfolio
According to ExxonMobil, the investment in Biojet AS, the value of which has not been disclosed, builds on the company’s “continuing efforts to develop and deploy” lower-emission energy solutions.
ExxonMobil established a Low Carbon Solutions business in 2021 and is currently evaluating biofuels, carbon capture and storage (CCS), and hydrogen projects around the world.
ExxonMobil’s majority-owned affiliate, Imperial Oil Ltd, is moving forward with plans to produce renewable diesel at a new complex at its Strathcona refinery in Alberta (AB), Canada.
The company also expanded its agreement to annually purchase up to 5 million barrels of renewable diesel from Global Clean Energy’s biorefinery in California (CA), the United States (US).
Chemically similar to petroleum-based diesel, renewable diesel, and other biofuels can be readily blended for use in engines on the market today.
