ExxonMobil Takes Stake in Norwegian Biofuels Business
US multinational energy company ExxonMobil has bought a 49.9% stake in Biojet, a Norwegian biofuels company that plans to convert forestry and wood-based construction waste into biofuels and biofuel components. Financial terms were not disclosed.
Biojet plans to develop up to five facilities producing the biofuels and biofuel components. The first plant will be built in Follum, Norway, where commercial production is expected to begin in 2025. Under the terms of the deal, ExxonMobil will have the right to purchase a certain number of barrels based on potential capacity of the five facilities.
“The agreement with Biojet AS advances ExxonMobil’s efforts to provide lower-emissions products for the transportation sector,” said Ian Carr, president of ExxonMobil Fuels and Lubricants. “Using our access at the Slagen terminal, we can efficiently distribute biofuels in Norway and to countries throughout northwest Europe.”
Biofuels and biofuel components can meet the requirements for advanced fuels under Norwegian, European Union and UK regulations. According to the EU Renewable Energy Directive, biofuels produced from wood waste can help reduce life-cycle greenhouse gas emissions by 85% compared with petroleum-based diesel.
ExxonMobil said the investment in Biojet builds on its ongoing efforts to develop and deploy lower-emission energy solutions. The Irvine-headquartered group established a Low Carbon Solutions business in 2021 and is currently evaluating biofuels, carbon capture and storage, and hydrogen projects around the world.
Author: Elaine Burridge, Freelance Journalist
