US-based oil and gas company ExxonMobil has acquired a 49.9% stake in Norwegian biofuels company Biojet for an undisclosed sum.
Biojet focuses on converting forestry and wood-based construction waste into lower-emissions biofuels and biofuel components.
It plans to develop up to five facilities to produce the biofuels and biofuel components, which are said to help in meeting the requirements for advanced fuels under Norwegian, European Union and UK regulations.
At a manufacturing facility to be constructed in Follum, Norway, Biojet is expected to begin commercial production in 2025.
Under the agreement with Biojet, ExxonMobil is anticipated to procure as much as 3 million barrels of the products per year, based on the potential capacity of the five facilities that are planned to be build.
ExxonMobil Fuels and Lubricants Company president Ian Carr said: “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.”
Biofuels produced at Biojet’s facilities are said to be suitable for use in passenger vehicles and heavy trucks.
ExxonMobil’s investment in Biojet is part of its efforts to develop and deploy lower-emission energy solutions.
Following the establishment of its Low Carbon Solutions business last year, ExxonMobil is currently evaluating biofuels, carbon capture and storage, and hydrogen projects around the world.
Imperial Oil, an affiliate of ExxonMobil, is progressing with plans to produce renewable diesel at a new complex at its Strathcona refinery.
Upon completion, the refinery is anticipated to produce approximately 20,000 barrels per day of renewable diesel, which could help in the reduction of emissions of about 3 million metric tonnes per year in the Canadian transportation sector.
