The two companies plan production facilities on neighbouring plots at Nesbruket industrial site in Mosjøen, Norway. The collaboration agreement addresses Gen2 Energy’s production and supply of green hydrogen ‘over the fence’ to Norsk e-Fuel, and Norsk e-Fuel’s use of the hydrogen to produce fossil-free fuels for the aviation industry.
Gen2 Energy’s large-scale hydrogen activities in Mosjøen are divided into two projects. The first project, Nesbruket plant 1, which is progressing towards a planned investment decision later this year, is targeting the export of green hydrogen to off-takers in Europe. The second project, Nesbruket plant 2, involves a scale-up of production capacity, using the land area next to Nesbruket plant 1 for production and supply of green hydrogen ‘over the fence’ to the neighbouring Norsk e-Fuel.
The two parties have agreed on a joint project development of the hydrogen produced at the Nesbruket 2 plant for Norsk e-Fuel. Close cooperation and coordination on the project development side are crucial. Both companies will therefore work closely together to make the projects a success before the exchange of hydrogen begins.
“Through strategic partnerships such as the one with Gen2 Energy, based on a shared commitment to innovation and efficient use of power and other resources, our collaboration not only facilitates the exchange of expertise, but also drives sustainable land use optimization and promotes cost efficiency,” said Lars Bjørn Larsen, CCO of Norsk e-Fuel. “Together, we are leading the way to a future of fossil-free aviation by creating a value chain that starts with our close collaboration in Mosjøen.”
Andreas Ekker, SVP Global Sales in Gen2 Energy, added: “It is a good match for us to be part of the e-fuel journey in Mosjøen through this partnership with Norsk e-Fuel. Our development and maturing of the initial hydrogen Nesbruket plant 1, has provided us with relevant experience and expertise that we will utilise for the success of e-fuel production. The short distance supply of hydrogen from our Nesbruket plant 2 to our neighbour Norsk e-Fuel is cost-efficient for both parties and represents a significant steppingstone towards the realization of the industrial ambitions in Vefsn municipality.”
The partnership will not only allow the two companies to maximize synergies, through development of joint infrastructures and value chains. The short hydrogen supply routes will also enable Gen2 Energy to optimize the cost efficiency of the production process. Furthermore, by outsourcing hydrogen production to Gen2 Energy, Norsk e-Fuel will be able to make best use of land and power and double the originally planned production volume from 25 million litres to 50 million litres per year. This will result in enough e-Fuel to fly 1.7 million people from Oslo to Bodø annually without using fossil fuels.
