USA: ExxonMobil bets on biofuels by acquiring stake in Biojet AS
The agreement is based on the development of five production facilities from which Exxon will buy as much as 3 million barrels of production per year.
ExxonMobil has acquired a 49.9% stake in Biojet AS to further expand its interests in biofuels. The Norwegian company will help by supplying its fuel based on converting forestry and wood-based construction waste into lower-emissions biofuels and biofuel components. The plans involve the development of up to five facilities that will produce and sell a majority to Exxon.
“The agreement with Biojet AS advances ExxonMobil’s efforts to provide lower-emissions products for the transportation sector. Using our access at the Slagen terminal, we can efficiently distribute biofuels in Norway and to countries throughout northwest Europe,” said Ian Carr, President of ExxonMobil Fuels and Lubricants Company.
Biojet AS anticipates that commercial production will begin in 2025 at a manufacturing plant to be built in Follum, Norway. The agreement enables ExxonMobil to purchase as much as 3 million barrels of the products per year, based on the potential capacity of the five facilities.
Both biofuels and its components can meet the requirements for advanced fuels under Norwegian, European Union and United Kingdom regulations. Biofuels produced from wood waste can help reduce life-cycle greenhouse gas emissions by 85% compared to petroleum-based diesel, according to the European Union Renewable Energy Directive.
Biojet AS’s production can be implemented on passenger vehicles as well as heavy trucks. ExxonMobil’s investment is part of its strategy to develop and deploy lower-emission energy solutions after establishing its Low Carbon Solutions business in 2021.
