Nova Pangaea and NorSAF Partnered on Latvia Plant
The companies have agreed to build an ethanol facility that will supply sustainable aviation fuel in the Baltic region.
Updated on Oct. 2, 2026 in Oil and Gas
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Nova Pangaea Technologies and NorSAF have partnered to construct a new ethanol production plant in Latvia. The facility will utilize proprietary technology to convert locally sourced wood waste into ethanol for the sustainable aviation fuel market.
Why it matters
This collaboration aims to build a more resilient European supply chain for sustainable aviation fuel by replacing overseas feedstocks with local forestry residues. It supports the industry in meeting tightening European Union mandates for cleaner aircraft fuel.
European aviation fuel suppliers must meet SAF mandates of 6% by 2030 and 20% by 2035, compared to a 2% threshold in 2025. The project will leverage REFNOVA technology to process wood waste into ethanol and biochar.
The players
Nova Pangaea Technologies
This Redcar-based company specializes in technologies that convert waste biomass into renewable energy products like ethanol.
NorSAF
This entity is a sustainable energy developer focused on building production infrastructure for the Baltic region aviation sector.
The details
The project will operate in the Baltic region, sourcing Latvian wood waste to create ethanol that feeds into larger sustainable aviation fuel projects. Nova Pangaea Technologies, based in Redcar, will provide the REFNOVA process to turn biomass into usable fuel products.
Timeline
2025: SAF mandate in EU airports reaches two per cent.
2030: SAF mandate in EU airports reaches six per cent.
2031: Production at the Latvian facility is expected to begin.
2035: SAF mandate in EU airports reaches 20 per cent.
Market Landscape
The partnership follows the trajectory set by the EU sustainable aviation fuel mandates, which require suppliers to scale up their output to reach 20 per cent of total fuel consumption by 2035. By localized processing, the companies shift away from reliance on imported feedstock to secure regional market share.
As European airlines increase the volume of sustainable fuel used, passengers may see impacts on ticket pricing related to the transition costs of these new supply chains. Consumers should expect the availability of lower-carbon flight options to increase as the 2030 and 2035 mandate deadlines approach.
The takeaway
The transition to sustainable aviation fuel relies heavily on the development of regional supply chains that utilize locally available waste products. Scaling these technologies is essential for firms to remain compliant with upcoming EU-wide environmental mandates.
Further reading
Learn more about the evolving energy sector in our Oil and Gas section.
Source note: This article includes information reported by Bdaily Business News.
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