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New company member - Nordic Electrofuel

The Chamber of Commerce is delighted to welcome a new company member: Nordic Electrofuel

Nordic Electrofuel (“NBC” or the “Company”) business concept is to produce carbon neutral E-fuel and wax based on synthetic hydrocarbon using renewable energy, water and CO2. The product mix will consist of kerosene (jetfuel), diesel, wax and naphtha. Hydrocarbon/Fischer-Tropsch-based E-fuel offers crucial advantages since it can be used in existing engines and infrastructure without any modifications. This enables transport sectors to implement a swift and significant reduction of the carbon footprint without making massive investments in new equipment. The synthesized kerosene has already been certified for use in airplanes since 2009. Power-to-hydrocarbons gives the most cost-efficient Power-to-Liquid solution for decarbonizing the aviation industry.

NBC will build a demonstration plant at Herøya, Porsgrunn, Norway with a production capacity of 10 million liters per year. The plan is to start production in 2024. Following successful commencement of the 10 million liters’ plant and successful operational track record, the plan is to scale up production to 200 million liters. The company will evaluate the operation of the 10-million-liter plant and optimize the expansion of the 200-million-liter plant. Herøya in Porsgrunn gives access to vital process technology knowledge and essential infrastructure such as power grids, water, CO2 and port facilities.

Following successful operation of the first 200-million-liter plant NBC plan to build several similar plants. The company works proactively to secure available power, water, CO2 and acreage in Norway in order to deliver on its ambitious growth plan.

NBC has seen a significant interest for its products and has signed 3 letters of intent on off take of the entire production volumes on the demonstration plant. The indicative prices give the Company comfort that it has a robust and sustainable business model. The Company has entered into agreements with key players related to access to resources such as power, CO2, water and land. Company information

Nordic Electrofuel is a privately held Norwegian company, with standardized articles of association, regulated by the Norwegian Limited Companies Act.

Nordic Electrofuel (“Company” or “NBC”) was established in 2015, by founder and Chairman of the Board Rolf Bruknapp, with the vision to transform the vast renewable hydropower resources in Norway into liquified electricity. The vision has transformed into a project where the Company will build the world's first commercial facility for production of high-quality and carbon-neutral synthetic fuels, and other fossil replacement products, based on water, carbon dioxide and renewable power from local suppliers.

The Company is registered in Porsgrunn municipality where the first plant will be built, located in Norway’s largest industrial Park at Herøya (HIP). The Company owns 100% of the shares in Nordic Wind AS, an entity established to secure resources for NBC ambitious growth plan.

The value proposition of Nordic Electrofuel is to utilize Norway’s rich access to renewable hydropower and access to CO2 from point source emissions, e.g. from cement industry, waste burning plants or bio-fuel plants, and combine it with advanced electrolysis technology. This will enable the company to offer carbon neutral liquified electricity at competitive prices.

Currently NBC is a start-up company where the major shareholders are the industrial investor Marquard & Bahls AG (M&B) and key personnel in NBC. The Company has raised more than EUR 6 million in equity and EUR 1 million in loans and grants to fund its development. In addition, M&B has committed an additional EUR 10 million in equity at final investment decision planned to take place in Q4 2021.

NBC’s executive management is senior personnel with comprehensive financial, technical, commercial and execution knowledge. Combined the team have more than 150 years’ experience developing, financing and executing projects similar to Electrofuel project.

The Company has 5 elected board members which are all shareholders of the company except for one independent Director, Mr Harald Norvik which is the former CEO of the Norwegian energy company Equinor, formerly known as Statoil. The members have broad experience from Norwegian and international industry.

Since its inception, NBC has developed a robust technological platform. The Company has several research- and development activities related to the technological platform to reduce risks and optimize processes. The Company receives approval and recognition for these activities from the Research Council of Norway, Innovation Norway and Telemark Development Fund which supports the Company’s R&D activities with grants and loans under the environmental technology scheme.

Comprehensive feasibility- and concept studies are completed. They address and conclude a wide and detailed range of technical- and execution issues. The main contributor has been Aker Solution AS (AKSO) with assistance from NBC and specialists from the Norwegian University of Science and Technology (NTNU). The activities completed and deliverables prepared result in a high technical and execution maturity enabling a robust basis for a cost estimate of 1.2 billion NOK (+/- 30%) with a 80 % confidence level. The studies include sound technical- and cost-efficient balance between OPEX and CAPEX.

The Company’s financial strategy to raise the required CAPEX for e-fuel 1 consists of a mix between equity, loans and grants. Due to the technological risks, grants from government-based entities is required to relieve the technology risk seen by equity and loan providers. In order to raise the required equity the Company has held a roadshow directed to industrial companies with a strategic fit to NBC with the objective of forming a consortium of 3-4 industrial and/or strategic investors to raise the required equity. The Company announced the financial commitment from its lead investor in the consortium, Marquard&Bahls AG with a commitment of EUR 10 million, in October 2020.

The Company has received massive interest from potential strategic and financial investors to support the Company’s activities. NBC is currently in advanced discussions with several of these prospects, however the COVID-19 pandemic has delayed the processes. As a complement to the industrial and strategic investors the Company has engaged an investment bank to prepare for a listing on the Merkur Market in Norway, which has attracted more than EUR 1 billion in funding for typical ESG companies year to date.

The Company is in advanced dialogue with Enova, an entity owned by the Norwegian Ministry of Climate and Environment. Enova funds initiatives like NBC who contributes to reduced greenhouse gas emissions, development of energy and climate technology and a strengthened security of supply.

With the ongoing activities, commitment from existing owners and advanced discussions with public resources, the Company is confident to raise the required CAPEX to build E-fuel 1, and its capabilities to implement the project.

Please find attached an evaluation of Nordic Electrofuel, made by Business Valuation International in March 2021.

Learn more. 

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