The world's leading provider of sustainable stainless steel, Outokumpu, and the Nordic company Norsk e-Fuel, which specializes in the development of power-to-liquid projects, have signed a memorandum of understanding. The aim of the cooperation is to build a production facility for synthetic, sustainably produced aviation fuels (eSAF), in which carbon monoxide (CO) from steel production will be converted. The planned CO-to-SAF plant is to be built in direct proximity to Outokumpu's stainless steel plant in Koivuluoto near Tornio in Finland. Norsk e-Fuel will begin a feasibility study in 2026. Should this prove positive, the investment decision could be made around 2028, with production expected to start in 2032.
Outokumpu would provide carbon monoxide by-products from its own ferrochrome production as feedstock. This would enable the production of between 80,000 and 100,000 tons of eSAF annually. The project would not only contribute to meeting the European Union's eSAF quota, but also advance the decarbonization of aviation – one of the most difficult sectors to decarbonize. After commissioning, the plant would generate economic added value for Outokumpu through improved utilization of by-products. At the same time, the project supports the company's decarbonization path: direct CO₂ emissions could be reduced by 200,000 tons annually, which corresponds to approximately 20 percent of Outokumpu's global direct emissions. Furthermore, the project contributes to the EU energy transition and strengthens Europe's resilience and strategic autonomy through the development of domestic fuel production.
Project Development and Investment Volume
Project development will be led by Norsk e-Fuel. The company brings many years of experience and a strong partner network to provide engineering services, secure financing, and attract future customers for the fuels produced. Norsk e-Fuel, which is responsible for project financing, estimates the investment at around €1.2 to €1.5 billion and expects the creation of approximately 250 new jobs on site.
Statements from Company Representatives
“Decarbonization is at the core of Outokumpu’s strategy and demonstrates our vision to lead in sustainable materials and technologies. We continuously seek new smart ways to reduce climate emissions across the entire value chain, and our Kemi-Tornio ecosystem provides an excellent platform to further strengthen the circular economy, while delivering financial value to Outokumpu. The partnership with Norsk e-Fuel demonstrates how Outokumpu’s commitment to sustainability extends beyond low-emission stainless steel and ferrochrome production to the utilization of our side streams”, says Martti Sassi, President for Business Area Ferrochrome at Outokumpu.
“The collaboration with Outokumpu brings together two companies with complementary strengths and a shared ambition to advance the energy transition in Finland and Europe. Outokumpu’s industrial platform and available side streams, combined with our experience in developing Power-to-Liquid projects, create a strong foundation for competitive eSAF production in Tornio. We value the openness and ambition Outokumpu brings to this partnership, and we are looking forward to evaluating the potentials of this eSAF project that will support both aviation decarbonization and Europe’s energy resilience”, says Lars Bjørn Larsen, CCO at Norsk e-Fuel.
Finland as an Optimal Location
Thanks to an abundant supply of clean electricity, government support for building a hydrogen industry, and access to relevant resources, Finland is among the best locations in Europe for eSAF production. Within Finland, the Bothnian Bay region stands out due to its robust industrial infrastructure and access to recycled carbon streams. Outokumpu in Tornio offers the most competitive available carbon sources. The carbon monoxide stream (CO) is available continuously throughout the year in large quantities and concentrations and is captured at a single location. This enables eSAF production with lower investment and operating costs compared to projects based on captured CO₂. Thus, Outokumpu at the Tornio site offers optimal conditions for large-scale and cost-efficient eSAF production in Europe.
Expansion of the Circular Economy Ecosystem
The planned eSAF plant is intended to become a flagship project of Outokumpu's circular ecosystem in the Koivuluoto-Tornio area. The collaboration with Norsk e-Fuel marks the first industrial development in this area and supports Outokumpu's objective of building a vibrant circular economy ecosystem.
"Our Tornio site is already one of Europe's largest recycling hubs today, processing over one million tons of steel scrap annually. Our long-term vision is to establish several new projects in the Koivuluoto area that utilize additional by-products and attract new partners to the ecosystem," said Tommi Silvennoinen, Senior Manager Strategic Partnerships in CCUS and New Energy Solutions at Outokumpu.
