Norsk e-Fuel And Carbon Centric Sign SAF Supply Agreement For 130,000 Tons Of CO2

Norsk E-fuel And Carbon Centric Sign SAF Supply Agreement For 130,000 Tons Of CO2 - Carbon Herald

Norsk e-Fuel and Carbon Centric have signed an agreement for CO2 Supply and Distribution for Norsk’s Alpha plant in Mosjøen, Norway. Carbon dioxide is one of the key components in the production of sustainable aviation fuel (SAF), which is considered as one of the ways airlines operating in the EU will achieve the blocks renewable fuel (RFNBO) mandates, slated to start in 2030.

The agreement is for the supply and distribution of 130,000 tons of CO2 annually, enabling Norsk e-Fuel to produce SAF at scale. Logitics were a key component of the agreement, with access to renewable electricity and developing a liquid CO2 distribution strategy allowing to optimize costs.

Karl Hauptmeier, CEO Norsk e-Fuel commented on the deal by saying: “This certainly is a first of a kind agreement in this industry: An e-Fuel producer, enabled through offtake-commitments from the aviation industry, committing to biogenic CO2 volumes exceeding 1Million tons. This sends a clear message to the market, there is a viable business for aggregators like Carbon Centric. We are very happy for this partnership with a company that shares the same values and that truly understands the importance CO2 will play in this new industry-in-the-making.”

Kenneth Juul, Chief Commercial Officer, Carbon Centric added: “This agreement is a key milestone in the development of Carbon Centric’s platform for CO2 capture and handling. We look forward to a long-term cooperation with Norsk e-Fuel and to enable them to provide sustainable aviation fuels. Being able to serve Norsk e-Fuel shows that we can construct value creating CO2 ecosystems that meet the requirements of the new industries needed to solve the climate crisis. We expect several similar set-ups on our CO2 platform going forward.”

Norsk E-fuel And Carbon Centric Sign SAF Supply Agreement For 130,000 Tons Of CO2 - contract signing
Samuel Schuster (Carbon Management, Norks e-Fuel), Kenneth Juul (CCO, Carbon Centric). Source: Norsk e-Fuel

The deal is part of Norsk e-Fuel’s target to secure an annual supply of 700,000 tons by 2030 through collaboration with CO2 aggregators across Nordic carbon capture and liquefaction sites. The agreement with Carbon Centric is seen as one of the main building blocks of achieving this goal.

Functioning as a CO2 aggregator, Carbon Centric specializes in capturing and liquefying carbon dioxide primarily from waste, biomass incineration, and other sources with high biogenic content. Its innovative “build, own, and operate” approach has gained traction in the market, aiding emitters in accelerating decarbonization efforts with minimal financial risk.

To ensure smooth delivery to the Alpha project, Carbon Centric has established a robust CO2 supply chain with intermodal transportation over road and rail.

Litra Gass AS, Norway’s primary road transporter of natural gas, possesses extensive experience in handling liquefied and compressed gases. For rail transportation, CargoNet AS, Norway’s leading rail freight operator, specializes in container transport and offers dedicated freight trains for major clients. Both partners boast a wealth of experience in logistics and operations, particularly in challenging environments.

Read more: Technip Energies To Join Carbon Centric CO2 Capture Project

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