Nordic Electrofuel Expands Renewable Hydrogen-based Aviation Fuels Production to Middle East
Key Ideas
- Nordic Electrofuel is expanding its e-SAF production to the Middle East, with plans for plants in Saudi Arabia and Oman, aiming to produce 350mn l/yr of e-SAF in Saudi Arabia by 2029.
- The company plans to benefit from low renewable power costs in both countries, driven by favorable conditions for solar and wind generation, with power supply expected at around $20/MWh.
- Nordic Electrofuel intends to target regional airlines with its e-SAF, using CO2 captured from industrial installations initially in the Middle East but aiming to secure biogenic CO2 in the long term.
- The company is also developing a pilot plant in Norway, with plans for commissioning in 2027 and subsequent capacity ramp-up, signing a term sheet for offtake from the facility.
Norwegian firm Nordic Electrofuel is expanding its production of renewable hydrogen-based sustainable aviation fuels (e-SAF) to the Middle East, specifically Saudi Arabia and Oman. In Saudi Arabia, plans for a plant in the Jubail region that could produce 350 million liters per year of e-SAF by 2029 have been approved by the government. The company also aims to produce renewable hydrogen on-site in Saudi Arabia, benefiting from low renewable power costs in the region. In Oman, Nordic Electrofuel may purchase hydrogen from other projects, leveraging the country's interest in hydrogen projects with favorable solar and wind generation conditions.
Nordic Electrofuel's strategy involves targeting regional airlines as offtake partners for its e-SAF, avoiding the need for biogenic CO2 initially by using captured CO2 from industrial sources in the Middle East. The company plans to explore obtaining biogenic CO2 in the future and potentially utilize direct air capture technology.
The company is also progressing with a pilot plant in Heroya, Norway, with plans for commissioning in 2027 and subsequent capacity scaling. Nordic Electrofuel is positioning itself as a key player in the renewable e-SAF market, with ambitions to cater to the growing demand for sustainable aviation fuels in the Middle East and beyond.