22nd March 2024, Oslo (Norway)
Norsk e-Fuel and Carbon Centric have entered into a landmark agreement for CO2 Supply and Distribution, where Carbon Centric will be responsible for the production and delivery of CO2 to Norsk e-Fuel's Alpha plant in Mosjøen in Northern Norway. CO2 is one of the main feedstocks in the synthetic production of sustainable aviation fuel, that will be required to meet the EU RFNBO SAF mandates of airlines operating out of EU airports starting in 2030.
Samuel Schuster (Carbon Management, Norks e-Fuel), Kenneth Juul (CCO, Carbon Centric)
The agreement involves the binding supply and offtake for CO2, with an annual volume exceeding 130,000 tons, where all crucial terms on pricing mechanisms, timelines, transport modalities, contingency plans, as well as standards and impurities have been agreed on.
Norsk e-Fuel’s focus on liquid CO2 supply facilitates the production of fossil-free fuels at scale, approaching the defossilization of aviation within the coming decades. As renewable electricity is one of the main cost drivers in the production of e-Fuels, the strategy on Liquid CO2 allows the company to prioritize the geographical proximity to low-cost grid access. By 2030, Norsk e-Fuel aims to secure an annual supply of 700,000 tons through collaboration with CO2 aggregators across Nordic carbon capture and liquefaction locations. This will require a resilient and dependable supply network for the distribution of physical CO2 molecules. The contract with Carbon Centric marks an important milestone in achieving Norsk e-Fuel’s goals and sets standards for future ramp-up.
Carbon Centric, acting as a CO2 aggregator, will capture and liquefy carbon dioxide primarily from waste and biomass incineration, and other sources of high biogenic content. Carbon Centric has gained traction in the market with an innovative build, own, and operate strategy, helping the emitters accelerate their decarbonisation efforts with limited financial risk. The company addresses smaller and medium sized emitters, making them a strategic partner in producing carbon-neutral alternatives to fossil fuels. Because, when biogenic CO2 is employed in the e-fuel production process, the utilization of CO2 becomes circular, as it involves recycling the same molecules previously present in the atmosphere.
To ensure seamless delivery to the Norsk e-Fuel Alpha project in Mosjøen, Carbon Centric has developed a robust Liquid CO2 supply chain. This supply chain capitalizes on intermodal transportation and transport vessels, in collaboration with industry experts in the Norwegian liquefied gas and rail cargo logistics:
Litra Gass AS is the largest road transporter of natural gas in Norway and experienced in the transport and handling of liquefied and compressed gasses. For the rail part, they engage with CargoNet AS, the leading rail freight operator in Norway, specialized in container transport and providing dedicated freight trains for major clients. Both partners are experienced in logistics and operations in harsh and challenging operational environments.
Fredrik Häger, CEO, Carbon Centric: “We are thrilled about this groundbreaking agreement with Norsk e-Fuel. The innovative approach and ambitious plans to produce e-fuel align perfectly with our commitment to help the world reach net zero emissions faster and to support the goals set out in the latest EU policies. This exciting partnership is not just about business; it's about making a real difference.”
Karl Hauptmeier, CEO Norsk e-Fuel: “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: “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.”
Samuel Schuster, Carbon Management & CO2 Supply Chain Manager, Norsk e-Fuel: “The synthesis of e-Fuels is a constant dance, managing power prices vs. the availability of the feedstock CO2. Norsk e-Fuel was founded with the vision of PtL production that is location-independent on CO2 access (like through DAC), prioritizing sites with favourable power availability and access. With this agreement, we solve the transport part to make CO2 flexible enough to follow to the production site, leveraging infrastructure currently taking shape in EU’s CCUS industry.”
On a broader European scale, this agreement highlights the growing significance of Carbon Capture and Utilization as recently published in the European Commission’s Industrial Carbon Management Strategy. With the EU aiming to capture and utilize 200MT of CO2 annually by 2050, particularly in synthetic fuels, CCU is recognized as a strategic net-zero technology under the Net Zero Industry Act. Technologies, which will contribute significantly to achieving the goal of net zero emissions by 2050 and play a crucial role in the Union's strategic autonomy, ensuring that citizens have access to clean, affordable, and secure energy. Projects classified as strategic Net Zero technologies will benefit from expedited approval processes, coordinated funding, and priority status for administrative and legal procedures.
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