Carrier Norwegian has opened Europe’s first state-sponsored route in Denmark to permanently use a 40% blend of the renewable jet fuel SAF.
Flights between Aalborg and Copenhagen started a few weeks ago, and will continue this year and next year.
“We are hugely behind in order to achieve the EU’s mixing obligation, and that is why Norwegian is doing everything possible to get the incentives going,” says Norwegian’s CEO Geir Karlsen Economic morning.
According to Karlsen, it is an investment from the Danish government. On the route, the Danish state covers the majority of the price difference between SAF and conventional aviation fuel. SAF can be 3–4 times more expensive, he says.
According to Karlsen, it is a Nordic joint effort, where a Norwegian airline flies the route in Denmark and buys the majority of the fuel from St1 from Sweden. The raw material used is 100% European.
According to current international safety regulations, the use of 100% SAF in commercial traffic is not yet approved. With a mixture of at least 40 percent, the route is close to the maximum allowed by current regulations.
According to Norwegian, the high SAF content in the tank means concretely that the route’s emissions are reduced by more than 3,000 tons of carbon dioxide annually, when looking at the fuel’s entire life cycle.
“A significant step”
Norwegian describes the step as significant in the aviation industry’s energy revolution. Finnish In this is the world’s leading producer of SAF and is in a good position if the change accelerates.
Karlsen believes that SAF is the future of aviation, and its deployment will expand and volumes will increase. As volumes increase, there may be a shortage of raw materials. SAF is made from, among other things, waste and residues. However, the problem at the moment is the price.
“Consider that the prices of biofuels remain significantly higher than fossil fuels, even when volumes increase. And that’s why we also need electric fuels.”
It can last. Karlsen says that he has just returned from a conference in Copenhagen where electric fuels and related future projects were discussed. He says that it will probably take 5-6 years from when the plant starts to be built before the first liter of electric fuel is in use.
In the transition phase, the use of renewable aviation fuels requires support, says Karlsen.
“We need states to help us, at least for a while, because airlines and passengers cannot bear the current costs.”
The financial morning also discussed the rapid rise of Nokia’s stock and the difficult situation of small companies on the Helsinki Stock Exchange. Watch the full broadcast below.
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