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Norwegian lands landmark NDMA SAF purchase deal

Norwegian lands landmark NDMA SAF purchase deal
Eirik Kristoffersen (left), Chief of Defence; Henrikki Talvitie, CEO of St1 Nordic; Per Arne Johnsen, Deputy Director of Procurement at Norwegian Defence Material Agency (NDMA); and Geir Karlsen, CEO of Norwegian (photo courtesy Morten Bergene).

In Norway, the first use of sustainable aviation fuel (SAF) for the defence sector's business trips with air carrier Norwegian Group (Norwegian) was marked at Ålesund Airport Vigra (AES) today. The Norwegian Defence Materiel Agency (NDMA) has agreed with Norwegian to blend 15 percent SAF on over 1 million business trips until 2028.

With two airlines – Norwegian Air Shuttle and Widerøe’s Flyveselskap – and a combined fleet of 135 aircraft, Norwegian Group is a leading Nordic aviation company, headquartered at Fornebu outside Oslo.

The agreement with NDMA stipulates that 15 percent of the defence sector’s business travel must be flown using a sustainable aviation fuel (SAF) and that
all SAF under the agreement must be refueled in Norway.

This agreement is an important step in the defence sector’s climate and environmental strategy. The sector aims to cut 20 percent of carbon dioxide emissions by 2030 and reduce emissions from purchased goods and services. To achieve these goals, reduced emissions from business travel and the Armed Forces’ own flights are central. The work that has been done to pave the way here is important, said  Chief of Defence Eirik Kristoffersen.

Norway’s defence sector at the forefront

The Norwegian defence sector’s travel consumption is estimated at around 250,000 trips per year. The agreement spans four years, starting in February 2024.

The agreement is the largest of its kind in Norwegian’s history, and likely a first in a NATO context.

Norwegian has already secured 1 million litres of SAF to Ålesund Airport (AES) with the help of the Finnish energy group St1 Nordic Oy and fuel supplier AFSN, a 50/50 joint venture owned by Shell Aviation and St1.

The SAF purchase agreement is the largest of its kind in Norwegian’s history, and likely a first in a NATO context (photo courtesy Morten Bergene).

The SAF will cover 15 percent of the total consumption of the defence sector’s more than 250,000 business trips in 2024 and will reduce carbon dioxide (CO2) emissions by over 2,000 tonnes in 2024.

This increases Norway’s SAF consumption by nearly 20 percent. The blending mandate of 0.5 percent corresponded to approximately 5.4 million liters of SAF in 2023, while the defense agreement for 2024 alone equates to 1 million liters.

The Norwegian defence sector is leading the way here. All parties involved can be proud of having created an agreement model that is at the forefront globally. We hope both the public and private sectors will follow suit in the future, said Geir Karlsen, CEO of Norwegian Group.

The Norwegian Defence Materiel Agency (NDMA), which administers the agreement, confirms that Norway is ahead in this field.

We have worked with the industry, organizations, and experts to shape this tender for business travel. We are very pleased with the result, which shows that we can be at the forefront. The tender has already received international attention, said Per Arne Johnsen, Interim Director of Procurement at NDMA.

Stimulate production and boost security of supply

Currently, no SAF is produced in Norway, and to ensure that the agreement contributes to stimulating local demand, the defense sector has set the requirement that refueling must take place in Norway.

Access to biofuels is important from a climate perspective, while also contributing to increased security of supply. Especially if the biofuel is short-travelled. Therefore, the defence sector wants to facilitate increased production of these types of fuel in Norway, said Chief of Defence Eirik Kristoffersen.

Norwegian has chosen to purchase SAF from St1 Nordic’s recently commissioned biorefinery unit in Gothenburg, Sweden.

Our biofuel production in Gothenburg enables us to serve Nordic customers closer and more efficiently. Voluntary agreements, such as the Norwegian defense sector has committed to, contribute to predictability and enable us to continue our focus on executing energy transition, commented Henrikki Talvitie, CEO of St1.

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