RIGA, March 13 (LETA) - CIS Liepaja, a developer of green hydrogen production facilities, and NorSAF, which is developing a sustainable aviation fuel (SAF) and synthetic fuel (eSAF) production facility in Liepaja, have signed a memorandum of understanding to strengthen cooperation in the Liepaja Special Economic Zone (SEZ), the companies informed LETA.

By signing the memorandum of understanding, the companies have agreed to cooperate to develop the production of green hydrogen and sustainable aviation fuel in the Liepaja SEZ. CIS Liepaja will supply green hydrogen as a feedstock for SAF and eSAF production at the upcoming NorSAF plant.

The aim of the memorandum is to strengthen close, coordinated cooperation to find the best possible technical, commercial, and infrastructure development solutions for the development of SAF, eSAF, and green hydrogen plants.

CIS Liepaja plans to establish a renewable energy complex by 2030, including the construction of one of the largest and most advanced green hydrogen production facilities in Northern Europe, investing more than EUR 550 million and creating at least 100 new jobs.

The hydrogen production facility would produce up to 21,200 tons of green hydrogen per year. A significant portion of this is planned to be exported to Germany and other European Union (EU) member states. CIS Liepaja’s parent company, joint-stock Northern Europe Energy Group (Northern Energy), currently has several active projects in the Baltics and Nordic countries, where the company sees significant growth potential.

Thor Magnus Rovik, CEO of Northern Energy and CIS Liepaja, states that Northern Energy has ambitious plans for industrial development in the Baltic region. The company views the agreement with NorSAF as a significant milestone on the path to implementing an ambitious project that will create new jobs, promote economic growth in Liepaja, and support the transition to modern energy.

Rovik notes that the project is currently nearing the conclusion of its feasibility study, and the FEED (Front-End Engineering and Design) phase is scheduled to begin in the third quarter of this year, while the final investment decision is expected to be made by the end of 2027.

The new NorSAF plant in Liepaja is expected to produce 100,000 tons of SAF per year, of which approximately 40,000 tons will be eSAF, produced from green hydrogen. The fuel will be supplied to aviation companies in the Baltics and Northern Europe and exported to other markets in Europe. Production is scheduled to begin in 2030.

The cost of the NorSAF plant is estimated at EUR 650 million, and it would create approximately 400 new jobs.

Janis Kisiels, founder and board member of NorSAF, explains that the NorSAF plant will become one of the most modern and largest SAF and eSAF production facilities in Europe. Green hydrogen is one of the key elements in eSAF production, and cooperation with a local partner will enable the creation of a secure and sustainable supply chain in Liepaja.

CIS Liepaja is a member of the Norwegian-Latvian Chamber of Commerce and the German-Latvian Chamber of Commerce. The CIS Liepaja project, which aims to establish a renewable energy complex and a hydrogen production facility with a production capacity of approximately 21,200 tons of hydrogen per year by 2030, has been recognized as a nationally significant strategic investment project. The project’s main investor, co-founder, and supporter is Stolt-Nielsen Holding.

Information from Firmas.lv indicates that CIS Liepaja was registered in 2023, and the company’s share capital is EUR 2,800. The company is owned by the Norwegian firm Clean Industrial Solutions Holding.

According to Firmas.lv, NorSAF reported a turnover of EUR 908,601 and losses of EUR 36,252 in 2024. NorSAF was registered in 2010, and the company’s share capital is EUR 7,187,645. 51 percent of NorSAF’s capital is owned by Ireland’s Avia Solutions Group, which belongs to Gediminas Ziemelis, considered Lithuania’s wealthiest person, while 49 percent is held by the Estonia-registered company Tlljet, whose beneficial owner is Latvian businessman Raimonds Kisiels.