Following extensive negotiations and a collaboration that began last year, Nordic Electrofuel (NEF) from Norway and P2X-Europe (P2X) from Germany – a joint venture between Mabanaft GmbH & Co. KG (Mabanaft) and the H&R Group – signed a term sheet today that officially lays the foundation for the production and commercialisation of synthetic fuels, with a clear focus on eSAF (electrically produced sustainable aviation fuel).
The agreement between the two companies provides for the production and long-term supply of sustainable fuels derived from green hydrogen and captured CO₂, using the power-to-liquid process. NEF plans to produce synthesis-based raw materials on a large scale in Norway from 2026 onwards for the aviation and chemical industries, whilst P2X will process these syncrudes into eFuels such as eSAF and other synthetic and sustainable products. The synthetic end products will then be marketed to end users via the parent companies, the Mabanaft Group – with its expertise in liquid fuels – and the H&R Group – as an expert in specialised chemical products. For the first time, the PtL project developer P2X has committed to also taking on the role of purchaser by buying PtL-derived syncrude, with a view to accelerating the expansion of low-carbon energy generation.
In the initial phase of the project, a production capacity of 8,000 tonnes of synthetic hydrocarbons per year is planned, which can be refined into sustainable fuels, with a significant increase in production planned for subsequent years. The production site will be located in the Herøya Industrial Park, Prosgrunn, approximately 150 kilometres south-west of the Norwegian capital, Oslo.
Gunnar Holen, CEO of Nordic Electrofuels, explains: “The agreement with P2X is a quantum leap for Nordic Electrofuel. It significantly improves the liquidity we require by securing long-term off-take of our products and enables us to reach the markets for NEF products in large volumes. P2X is a perfect partner, undertaking the upgrading and handling the downstream operations, which complements our business, and possesses the necessary capabilities and assets. NEF has long maintained close relationships with P2X and its sponsors, which have facilitated the path to this agreement. We also anticipate the signing of further agreements between the parties for future plants.”
“P2X-Europe is expanding its business into attractive regions across Europe, from the Iberian Peninsula to Scandinavia,” says Detlev Woesten, CEO of P2X-Europe and Chief Sustainability Officer at H&R. The project will further strengthen the expertise of P2X-Europe, a global pioneer in PtL project development and technology configuration, supported by the highly representative reference projects of its parent companies. The strategic partnership enables P2X’s parent company, the Mabanaft Group, to increase the supply of non-fossil, environmentally friendly aviation fuel to the market.
Volker Ebeling, Executive Director of P2X-Europe and Senior Vice President of New Energy, Chemicals and Gas at Mabanaft, explains: “This is an important milestone as we are constantly expanding our range of sustainable products, in this case for our aviation customers. With Nordic Electrofuel, we have an innovative partner for power-to-liquid solutions at our side, which is fostering a further European strategic partnership for the large-scale production of green molecules.”
The long-awaited draft ReFuelEU Aviation Regulation presented by the European Commission sets out an initial blending quota for renewable fuels from 2025 and a specific quota for eSAF from 2030: This quota finally establishes the legal framework for the eSAF market and is a clear call to action – both for the aviation sector and for future PtL producers and fuel suppliers.
This PtL project is undoubtedly a crucial initiative for driving forward the decarbonisation of the global economy. Through the carbon-neutral production of high-quality synthetic fuels, the fossil fuels currently used in various industrial sectors are to be replaced, which will have a significant impact.
P2X-Europe GmbH & Co. KG is an independent Power-to-Liquid (PtL) project development joint venture backed by two German companies based in Hamburg: the Mabanaft Group, a leading independent and integrated energy company, and the H&R Group, which develops and manufactures specialised chemical and pharmaceutical products. P2X-Europe develops, builds and invests in vertically integrated, end-to-end Power-to-Liquid technology solutions to enable the market launch of net-zero synthetic chemicals and fuels. The Hamburg-based company has set itself the goal of becoming a world-leading supplier of renewable hydrogen and environmentally friendly synthetic hydrocarbons, with a focus on sustainable aviation fuels. The company is building a strong and diverse portfolio of large-scale Power-to-X projects across various sectors and regions.
Mabanaft GmbH & Co. KG is a leading independent and integrated energy company that provides its customers with innovative energy solutions in the transport, heating, industrial and agricultural sectors. The company is active in the import, distribution and marketing of petroleum products, natural gas liquids, chemicals and biofuels, and supports its customers in the transition to cleaner fuels by offering alternative long-term solutions.
H&R KGaA: Listed on the Prime Standard of the Frankfurt Stock Exchange, H&R KGaA is a speciality chemicals company active in the development and manufacture of speciality chemical and pharmaceutical products based on crude oil, and in the production of precision plastic components.
Nordic Electrofuel AS: Nordic Electrofuel AS’s businessconcept is the production of carbon-neutral eFuel and wax based on synthetic hydrocarbons, using renewable energy, water and CO/CO₂. The eFuel product is supplied to refinery partners, where the end products may include, amongst others, eSAF (aviation fuel), eDiesel (maritime and heavy goods transport), naphtha, wax and lubricants. As aviation is the sector where emissions are hardest to reduce, the focus is on this industry. Power-to-Liquid offers the most cost-effective solution for decarbonising the aviation industry. Bureau Veritas has carried out a life cycle analysis for NEF’s eFuel, which confirms a 99.9 per cent reduction in emissions compared with fossil fuels. Following the commissioning of its first plant, Nordic Electrofuel has a portfolio of further plants that are set to reach a capacity of 800,000 tonnes within a decade.
