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 commercialization 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 purchase of sustainable fuels made from green hydrogen and captured CO₂, using the power-to-liquid process. NEF plans to begin large-scale production of synthesis-based feedstocks for the aviation and chemical industries in Norway starting in 2026, while 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 consumers through the parent companies—the Mabanaft Group, with its expertise in liquid fuels, and the H&R Group, an expert in specialty chemical products. For the first time, the PtL project developer P2X has committed to also assuming the role of buyer by purchasing PtL-derived syncrude in order to accelerate the expansion of low-carbon energy production.
In the initial phase of the project, a production capacity of 8,000 metric tons 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 in Prosgrunn, approximately 150 kilometers southwest 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 need 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 that handles the upgrading and takes care of 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 facilities.”
“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 continue to expand our range of sustainable products, in this case for our customers in the aviation sector. With Nordic Electrofuel, we have an innovative partner for power-to-liquid solutions at our side, one that is fostering another European strategic partnership for the large-scale production of green molecules.”
The long-awaited draft ReFuelEU Aviation Regulation presented by the European Commission calls for an initial blending quota for renewable fuels starting in 2025 and a specific quota for eSAF starting in 2030: The quota finally establishes the legal framework for the eSAF market and serves as a clear call to action—both for the aviation industry and for future PtL producers and fuel suppliers.
This PtL project is undoubtedly a crucial initiative for advancing the decarbonization 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 specialty chemical and pharmaceutical products. P2X-Europe develops, builds, and invests in vertically integrated, end-to-end Power-to-Liquid technology solutions to enable the commercialization of net-zero synthetic chemicals and fuels. The Hamburg-based company aims to become a global leader in 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 industries and regions.
Mabanaft GmbH & Co. KG is a leading independent and integrated energy company that offers its customers innovative energy solutions in the transportation, 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 specialty chemicals company engaged in the development and manufacture of specialty chemical and pharmaceutical products based on crude oil, as well as in the production of precision plastic parts.
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, among others, eSAF (aviation fuel), eDiesel (maritime and heavy-duty transportation), naphtha, wax, and lubricants. Since 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 decarbonizing the aviation industry. Bureau Veritas has conducted a life cycle analysis for NEF’s eFuel, confirming a 99.9% reduction in emissions compared to fossil fuels. Following the commissioning of its first plant, Nordic Electrofuel has a portfolio of additional plants that are expected to reach a capacity of 800,000 metric tons within a decade.
