The investment will enable NGF to develop two new fuel production facilities in Finland. These will generate enough fuel to power nearly 2,000 flights from London to New York a year.
Construction of the facilities is expected to start in the next few years, with one aiming to be operational in 2030.
The sustainable aviation fuel will be produced by capturing biogenic CO2 – carbon emitted by biological material – and combining it with green hydrogen, both abundant in Finland.
Lower environmental impact
This fuel will be supplied to airlines and fuel companies, meaning that in the coming years, flyers can look forward to seeing planes take off with a lower environmental impact.
NGF, which has multiple other projects in its pipeline, is also backed by Business Finland, Finland’s government agency for trade and investment promotion.
This effort is part of the aviation industry’s broader push to become greener. Currently, sustainable aviation fuel makes up less than 1% of all jet fuel worldwide. However, the market is expected to grow significantly, with EU and UK initiatives requiring airlines to increase this to 6% and 10% by 2030 respectively*.
This latest investment was made on behalf of the Octopus Energy Transition Fund (OETF) and Sky Fund (ORI SCSp), managed by Octopus Energy Generation.
Investment in Finland
It marks Octopus’ most recent investment in Finland, where it manages two onshore wind farms and is creating new wind and solar power through its investment in developer NorGen.
Zoisa North-Bond, CEO of Octopus Energy Generation, said: “Finland is leading the way in fuelling the flight to a greener aviation sector. There’s a huge untapped opportunity to decarbonise air travel with planet-friendly fuels. As flyers become more eco-conscious, it’s vital to develop much-needed sustainable fuel to make flights cleaner than ever before.”
Jussi Åkerberg, Head of Program, Flexible Energy Systems, Business Finland, added: “At Business Finland we want to see companies in Finland become key players in building a sustainable fuels economy nationally and globally. We look forward to supporting Nordic Generation Fuels in the work towards this common objective.”
Miko Pironetti, CEO, Nordic Generation Fuels, said:“We at Nordic Generation Fuels are delighted that Octopus saw the potential in the company and excited to receive the investment from Octopus. Our team is looking forward to working together with Octopus on this challenging and exciting journey that has begun.”
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