E-SAF from Nordic Electrofuel-Hydrogen fuel for aircraft-Oman uses its solar energy for green aviation

Nordic Electrofuel plans E-SAF project in Oman: An analysis of the sustainable aviation fuel industry in the sultanate

The Norwegian company Nordic Electrofuel has recently announced its plans to build a facility for electrical sustainable aviation fuel (E-SAF) in the Sultanat Oman. This development blends in in Oman's growing ambitions to establish itself as the center for the production of renewable energies and sustainable aviation fuels. The planned system will use renewable energy and green hydrogen to produce low-CO₂ flight fuel that has a significantly reduced carbon footprint compared to conventional kerosene. While the exact capacity of the facility in Oman has to be determined, this announcement shows the growing international interest in the use of Oman's rich solar and wind resources for the production of sustainable fuels.

EAF (electrically generated sustainable flight fuel) is not a pure hydrogen fuel for aircraft, but a synthetic fuel that is produced using hydrogen

The technology behind E-SAF and its importance for the aviation industry

Electrical sustainable aviation fuel (E-SAF) represents a promising solution for the decarbonization of aviation, a sector that is particularly difficult to decarbonize. The manufacturing process of EAF begins with the use of renewable electricity for electrolysis of water, which separates hydrogen and oxygen. The hydrogen obtained is then combined with carbon dioxide, which comes either from the atmosphere or from industrial sources. Chemical synthesis creates a fuel that resembles conventional kerosene, but with a much lower carbon footprint.

The advantages of E-SAF compared to conventional fossil flight fuels are considerable. It burns cleaner and can be used in existing aircraft engines without modifications, which enables immediate reduction in greenhouse gas emissions. For airlines that are increasingly under pressure to reduce their environmental impacts, E-SAF offers a practical solution for emission reduction without major changes to the fleet or infrastructure.

However, the production of e-SAF is energy-intensive and requires considerable amounts of renewable electricity and access to CO₂ sources. Therefore, the choice of location for e-SAF systems is of crucial importance in order to achieve economically viable production costs. The Sultanate Oman, with its excellent conditions for solar and wind energy, positions itself as the ideal location for such systems.

The production process of EAF includes the following steps

• Creation of green hydrogen through electrolysis with renewable energy
• Combination of hydrogen with CO₂ (often from air separation or industrial processes)
• Conversion of these raw materials into a synthetic crude oil-equivalent
• Further processing into a kerosene-like fuel

The end product is a liquid fuel that can be used in conventional aircraft engines without modifications. E-SAF can be used as a “drop-in” fuel, which means that it can mix with conventional kerosene or completely replace it.

The main advantage of e-SAF lies in its potential CO₂ neutrality, since only as much CO₂ is released in combustion as was bound to production. In addition, the use of e-SAF can lead to a reduction in soot and ice division concentration compared to conventional kerosene, which has a positive effect on the formation of condensed strips.

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Nordic Electrofuel Global and Regional E-SAF strategy

Nordic Electrofuel, a privately managed Norwegian company, pursues an ambitious strategy for developing several E-SAF production facilities in Europe and other regions. The company plans to reach a total capacity of around 1 billion liters of carbon -low -carbon flight fuel per year by 2033. Their technology is based on the power-to-liquid (PTL) process, in which green hydrogen and CO₂ are used for the production of sustainable flight fuel.

As part of its development strategy, Nordic Electrofuel is currently building a pilot facility in the Norwegian Porgrunn district. This system is to be put into operation in 2027 and have an annual capacity of 10 million liters of synthetic fuels. This pilot plant will serve as a technology engineering and provide valuable experience for larger commercial projects.

Nordic Electrofuel has already made significant progress in the Middle East. The company has received approval for the construction of an e-SAF system with a capacity of 350 million liters per year in Jubail, Saudi Arabia. According to the CEO of Nordic Electrofuel, Gunnar, this system could go into operation in 2029 if the project was accelerated accordingly. In Saudi Arabia, the company plans to produce renewable hydrogen itself while the solar systems are to be developed by partners.

The expansion to the Middle East, especially Saudi Arabia and Oman, illustrates the strategy of Nordic Electrofuel to use regions with optimal conditions for renewable energies. In both countries, the company expects to benefit from low costs for renewable energy, which are made possible by the extremely favorable conditions for solar and wind production.

The planned Oman project of Nordic Electrofuel

The announcement by Nordic Electrofuel to build an EAF system in the Sultanate Omana was announced by the company CEO Gunnar in an interview with Argus Media, a London media organization and energy granch memorial factory. Although the planned capacity of the facility in Oman has not yet been determined, fetch has pointed out that the raw material material for the project could come from the large -scale developments in the field of green hydrogen that are to be built in Oman in the coming years.

An important advantage for the planned investment of Nordic Electrofuel in Oman is the inexpensive renewable electricity sources due to the abundant high-quality solar and wind resources in the country. The power supply costs could be around 20 USD/MWh, which is made possible by the extremely favorable conditions for solar and wind production.

In contrast to her project in Saudi Arabia, where Nordic Electrofuel plans to produce the renewable hydrogen itself, the company in Oman could consider buying hydrogen from other projects. Oman has attracted a strong interest of potential hydrogen project developers, and the state hydroma recently announced a third tender for land after eight have already been assigned.

The partnership between Nordic Electrofuel and Oman could be advantageous for both sides. For Nordic Electrofuel, Oman offers ideal conditions for the cost-efficient production of EAF, while Oman could benefit from the technology and specialist knowledge of the company in order to advance its ambitions in the field of renewable energies and sustainable aviation fuels.

Oman's renewable energy and green hydrogen landscape

Oman actively positions himself as a leading producer and exporter of renewable hydrogen and based on it. The country has excellent renewable resources, especially solar PV and onshore wind, as well as a favorable geographical location for access to important import markets such as Europe and Japan. In addition, Oman has large land areas for large -scale project development and existing fossil fuel infrastructures that can be used directly or converted for low -carbon fuels.

According to a report by the International Energy Agency (IEA) and the Ministry of Energy and Minerals, Oman could produce green hydrogen at globally competitive costs of USD 1.6/kg. This forecast is based on the availability of cheap renewable electricity, which is made possible by the abundant solar and wind resources as well as by almost unlimited land areas for development.

Oman strives for the production of around 1 million tons of renewable hydrogen per year until 2030, which will require about 50 terawatt hours (TWH) in its own renewable electricity. The investments required for the development of this capacity are estimated at around $ 33 billion by 2030, including $ 20 billion for renewable energy and $ 13 billion for electrolysis and ammonia conversion.

There are currently various estimates on hydrogen production costs in Oman. A study using the H2A-Lite tool of the US National Renewable Energy Laboratory estimates the leveled costs for green hydrogen (LCOH) at around 5.63 USD/kg. Another study shows that hydrogen production costs for selected locations in Oman are between 6.31 and 7.32 USD/kg. With progressive technology and scale effects, it is expected that these costs will decrease considerably in the coming years.

The first green hydrogen project in Oman, for which the final investment decision between 2026 and 2027 is expected, is probably the Hyport DuQM project with an initial production capacity of 60,000 tons per year. The project is supported by OQ Alternative Energy (25.5%), BP (49%) and the Belgian company Deme (25.5%).

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More E-SAF initiatives in Oman

In addition to the plans of Nordic Electrofuel, there are several other important initiatives to promote E-SAF production in Oman. The country's civil aviation authority (CAA) plays a leading role in the attraction of local and international investments in a national EAF production center. Since the organization of a pioneering forum on sustainable and low-carbon aviation fuels in October 2023, several ambitious initiatives to support e-SAF production in the country have been announced.

The initiative of the Oscar (Oman Sustainable Cars and Aviation Refueling) consortium is particularly remarkable, which examines the potential for the production of e-gasoline and EAF. The consortium consists of OQ Alternative Energy (OQAE), Dutco, Sumitomo Corporation Middle East Fze, Automobili Lamborghini Spa and Airbus. The concept study will investigate the production of e-fuels (E-SAF and E-Zenzin) in a pilot scale with the possibility of later identifying it into a commercial project by identifying the most suitable production path from qualifying hydrogen and CO₂ sources.

In addition, OQ Alternative Energy and Tree Energy Solutions (TES) have concluded an agreement for joint examination in order to evaluate the development of an investment for electrical natural gas (E-NG) in Oman. This agreement underlines the commitment of Oman for the diversification of its renewable energy sources and the promotion of the production of different types of clean fuels.

Another important player in the sustainable fuel landscape of Oman is the startup Wakud, which has announced plans for the construction of two large biora -refineries for the production of sustainable flight fuel (SAF) with a total investment of around 630 million. These systems are to be built at the ports of Sohar and Salalah and go into operation from 2026 and 2027. The SOHAR system is said to have an annual capacity of 250 million liters of SAF and 125 million liters of EAF, while the Salalah facility is to produce 200 million liters of SAF and 100 million liters of EAF annually.

Economic considerations and potential challenges

The development of E-SAF production systems in Oman offers significant economic opportunities, but also represents challenges. The economic advantages include the diversification of the economy away from fossil fuels, the creation of jobs and the development of new branches of industry. In addition, as an exporter of EAF, Oman could benefit from the growing global demand for sustainable aviation fuels, especially in regions with strict emission regulations such as Europe.

However, one of the main challenges is to ensure sufficient supply with renewable electricity at competitive costs. Although Oman has excellent solar and wind resources, the development of the necessary infrastructure requires considerable investments. Electricity costs are a crucial factor for the economy of EAF projects, since electrolysis for hydrogen production is energy-intensive.

Another challenge is to ensure a reliable CO₂ source for the E-SAF production process. Nordic Electrofuel plans to first use CO₂ from industrial systems for its locations in the Middle East. In the long term, Direct Air Capture (DAC) technologies could offer another CO₂ source, although this depends on the further development of this technology.

The competitiveness of e-SAF compared to conventional kerosene is also a challenge, since E-SAF is currently produced at higher costs. The support from favorable political framework conditions, incentives and mandates could be necessary to promote the introduction of E-SAF and to improve its competitiveness.

With renewable resources on a high flight: Oman's plans for green aviation

The plans of Nordic Electrofuel to build an E-SAF system in Oman are a significant step in the development of a sustainable aviation fuel industry in the sultanate. This initiative fits well with Oman's wider ambitions to establish itself as a leading producer and exporter of renewable hydrogen and based on it. With its extensive renewable resources, strategic geographical location and supportive political framework, Oman is well positioned to benefit from the growing global demand for sustainable aviation states.

The successful implementation of this and other EAF projects in Oman could offer significant economic advantages, including the diversification of the economy, the creation of jobs and the development of new branches of industry. In addition, it would help Oman to achieve its environmental goals and to contribute to global effort to reduce greenhouse gas emissions from air traffic.

While there are still challenges with regard to the scaling of renewable energy production, ensuring reliable CO₂ supply and improving the competitiveness of EAF, current developments indicate a promising future for the sustainable aviation fuel industry in Oman. With the continuous commitment of companies such as Nordic Electrofuel and the support of the government, Oman is on the best way to become an important player on the global market for sustainable aviation fuels.

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