Budget Carriers Norwegian, Wizz Air to Invest in Biofuel Production

DALLAS – Low-cost stalwarts Norwegian Air (D8) and Wizz Air (W6) are the latest LCCs to get proactive in the battle for access to Sustainable Aviation Fuel (SAF).

Today, both announced they will take on the role of principal investors in partnerships with Norsk e-Fuel (D8) and Firefly (UK). Norsk will build a bespoke SAF plant in Mosjoen, Norway while W6 has a target production date from 2028 at the Firefly Bristol base.

So why partner up? Access. Aviation is just one sector vying for the same raw materials that are the feedstocks for the world's transportation needs. And without these kinds of agreements, they would be at the mercy of the open markets, which are not historically kind to budget airline strategy. And they need to act fast.

Michael Berlouis, head of strategic projects at W6 echoes the challenges ahead “Feedstock availability remains a key challenge for the industry – our investment in Firefly and its sewage-sludge sustainable fuel technology is a major step forward for Wizz Air in securing its long-term ability to provide low-cost fares to its customers in an ever-more environmentally-sustainable way.”

A number of airlines this year have fallen foul of the regulators when it comes to the green agenda. A prominent Middle Eastern carrier was fined in the UK for misleading the public on the accuracy of its emissions strategy.

SAF - Here for the Lang-Haul?

Sustainable aviation fuel is a key pillar in the aviation industry’s plan to reach NetZero emissions by 2050. The other pillars such as electric propulsion, Hydrogen-electric, and PtL (power to liquid) solutions are as yet immature technologies that will take decades to make an impact. So SAF is currently topic number one at every airline board meeting.

Gier Karlsen, Chief Executive Officer of Norwegian, describes the move as a “landmark agreement” and a “milestone” for Aviation. And milestones are needed. On January 1, 2023, neighbor Denmark announced that it would make domestic aviation fossil-free by 2030 and Sweden wants to make the entire country climate neutral by 2045.

2023 will also see the start of the domestic flight bans in France, to be replaced by suitable rail connections.

Sustainable Skies

Both Norsk and Firefly are relative newcomers to SAF. The big players are Lanzatech, Neste and Fulcrum. There are also aviation’s Jet A-1 incumbents, Air BP and Shell, which are also advanced in development for their own SAF production. Shell in particular, who signed a SAF contract with the world’s largest low-cost carrier Ryanair in Dec last year, certainly has the pedigree and budget to deliver at scale.

On the other side of the Atlantic, Southwest Airlines (WN) has production agreements with NESTE, but has also invested in SAFFiRE Renewables which is backed by the US Department of Energy. Their Solution involves converting Corn Stover, a widely available waste feedstock in the US, into Ethanol on its way to becoming SAF.

Current fueling standards allow for 50% of Jet A-1 for commercial aircraft to be “blended” (combined) with SAF. This is the quickest and safest mechanism for fuel to be introduced into the supply chain. And speed is a large component of this.

“Our sector contributes to great value creation, both socially and economically, and we commit to significantly reducing our climate impact as we take advantage of technological advances within aviation fuel,” Gier Karlsen says. “E-fuels can become a gamechanger for aviation.”

He's right, but for that equation to be true, we need the buyers of tickets to be confident that we are doing everything we can to deliver on real emissions reductions.

Featured image: Alberto Cucini/Airways