Muscat: Norwegian company Nordic Electrofuel has announced plans to set up a plant in Oman to produce eco-friendly aviation fuel using renewable hydrogen. This fuel, known as e-SAF, is expected to help reduce pollution in the aviation sector.
Nordic Electrofuel’s Chief Executive Gunnar Holen shared the news during an interview with Argus Media, a London-based media and research organization. The company also revealed plans to launch similar projects in Saudi Arabia and other parts of the Middle East.
The plan supports Oman’s efforts to become a production hub for e-SAF to meet the growing demand for low-carbon fuel as airlines work to reduce emissions.
e-SAF is made by using electricity to split water into hydrogen and oxygen. The hydrogen is then combined with carbon dioxide collected from the air or industrial sources. This process creates a fuel similar to regular jet fuel but with lower emissions.
Nordic Electrofuel, a private company, plans to build several such facilities in Europe and other regions, aiming to produce about 1 billion litres of this fuel each year by 2033. A smaller plant in Norway is already under construction and is expected to start operating in 2027, producing 10 million litres annually.
In the Middle East, Nordic Electrofuel has approvals to build a large plant in Jubail, Saudi Arabia, with plans to produce 350 million litres per year by 2029, if the project stays on track.
For the Oman project, Holen said the size of the plant is yet to be decided. However, it is expected to rely on hydrogen produced from Oman’s planned renewable energy projects.
Holen also said Oman’s strong solar and wind energy resources make it an ideal location for producing renewable electricity, which is needed for the project.
Oman’s Civil Aviation Authority (CAA) is working to attract investments in e-SAF production. After hosting a conference on clean aviation fuel in October 2023, several initiatives have been launched to support e-SAF production.
One such initiative is the OSCAR consortium, which is studying ways to produce e-gasoline and e-SAF. The group includes OQ Alternative Energy, Dutco, Sumitomo Corporation Middle East FZE, Automobili Lamborghini, and Airbus.
Dutch company SkyNRG has also signed an agreement with Oman’s aviation authority to look into setting up an e-SAF plant in the country.
Meanwhile, Omani startup Wakud has announced plans to build two large bio-refineries for e-SAF production, with a total investment of about $630 million.
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