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Exxon Mobil acquires stake in biofuel company

US-based supermajor Exxon Mobil has announced that it has agreed to buy a 49.9% stake in the Norwegian firm Biojet AS, which aims to convert wood waste from construction and forestry into biofuels and feedstock for making biofuels.

As many as five facilities may be built by Biojet AS to process wood waste, with the plant in Follum, Norway set to be the first to come online in 2025. Under the agreement, Exxon Mobil will have the right to purchase up to three million barrels of biofuel product a year.

ExxonMobil Fuels and Lubricants Company’s president, Ian Carr, said about the deal:

“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.”

The agreement extends the company’s presence in the market for low-emission fuel solutions. It is also developing ways to produce and harvest algae oil, which can potentially be processed into a drop-in replacement for diesel or processed into other products, such as grease or gear oil for use in wind turbines.

The biofuels made by Biojet AS should be suitable for use in haulage and passenger vehicles. When wood waste is processed into such fuels, the greenhouse gas emissions over its lifecycle can be 85% lower than fuel made from crude oil, according to the European Union Renewable Energy Directive. Biojet may also develop aviation and marine transport biofuels if there is adequate demand.

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