Norway-based electro-fuel (eFuel) developer Nordic Electrofuel AS (NEF) and Germany's P2X-Europe GmbH & Co. KG (P2X-Europe), a joint venture of Mabanaft GmbH & Co. KG (Mabanaft) and H&R Group, have signed a term sheet that formally lays the foundation for the production and commercialization of synthetic fuels, with a clear focus on sustainable aviation fuel (eSAF).
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The agreement between the two companies foresees the production and long-term offtake of sustainable fuels from green hydrogen and captured carbon dioxide (CO2), using the Power-to-Liquid (PtL) pathway.
Nordic Electrofuel (NEF) plans to produce synthesis-based raw materials for the aviation and chemical industry at a large scale from 2026 in Norway. Following the commencement of the first plant, Nordic Electrofuel has a portfolio of subsequent plants with a roadmap to reach a capacity of 800 000 tonnes within a decade from now.
P2X-Europe will further upgrade the syncrude into eFuels such as eSAF and other synthetic and sustainable products.
The final synthetic products will then be marketed to end-users through parent companies Mabanaft Group with its expertise in liquid fuels and H&R Group as an expert in specialty chemical products.
The agreement reached with P2X-Europe marks a quantum leap for Nordic Electrofuel. It greatly improves the needed bankability for us with secured long-term offtake for our products and enables us to reach the markets for NEF’s products in volumes. P2X is a perfect partner since it will do the upgrading and brings the downstream part which is complementing our business and having the skills and assets in place to do so. NEF has over a long time enjoyed a strong relationship with P2X and its sponsors, which have made this process towards the agreement easier. We also expect to sign subsequent agreements between the parties for future plants, said Gunnar Holen, CEO of Nordic Electrofuel.
First offtake role for P2X-Europe
For the first time, the PtL project developer P2X-Europe is committed to also taking on the off-taker role by purchasing PtL-derived syncrude, aiming at accelerating the ramp-up of low-carbon energy production.
The initial stage of the project estimates a production capacity of 8 000 tonnes of synthetic hydrocarbons per year, ready to be refined into sustainable fuels, with a considerable production ramp-up planned in the following years.
The production site will be located at Herøya industrial park, Porsgrunn, about 150 km southwest of the Norwegian capital Oslo.
P2X-Europe is expanding its business to the most attractive regions in Europe, starting at the Iberian Peninsula and now including Scandinavia, said Detlev Woesten, CEO of P2X-Europe and Chief Sustainability Officer at H&R.
Tap into the European eSAF market
The project will further nourish the know-how of P2X-Europe, a global pioneer in PtL project development and technology configuration, backed by the strongly representable reference projects of its parent companies.
The strategic partnership positions P2X-Europe’s parent company Mabanaft Group to increase market supplies of non-fossil, green jet fuel for the aviation industry.
According to the long-awaited ReFuelEU Aviation draft regulation presented by the EU Commission, an initial blending quota of renewable fuels as of 2025 and a specific quota for eSAF from 2030 is required: the quota finally establishes the legal framework for the eSAF market and is a clear call for action – for the aviation as well as for future PtL producers and fuel suppliers.
This marks a significant milestone as we constantly expand our sustainable product offering, in this case for our aviation customers. With Nordic Electrofuel we have an innovative partner for power-to-liquid solutions at our side, fostering another European strategic partnership for the production of green molecules at scale, said Volker Ebeling, Executive Director of P2X-Europe and SVP New Energy, Chemicals and Gas at Mabanaft.