The parties have signed a Memorandum of Understanding (MoU) for the development of an eSAF production facility planned to be built in the Koivuluoto area of Tornio, Finland, adjacent to Outokumpu’s site. Under the MoU, Norsk e-Fuel will launch feasibility studies in 2026. Subject to positive results, the company plans to take a final investment decision around 2028 for a project with an estimated investment value of approximately EUR 1.2–1.5 billion and to commission the plant in 2032. The project is expected to create around 250 new jobs in the region.
200,000 tonnes of direct emissions reduction for Outokumpu
Within the scope of the project, Outokumpu will supply carbon monoxide (CO) by-products generated from ferrochrome production as feedstock for the annual production of 80,000–100,000 tonnes of eSAF. This will enable the company to reduce its direct CO₂ emissions by approximately 200,000 tonnes per year, representing around 20% of Outokumpu’s global direct emissions.
In addition to contributing to the decarbonisation of the aviation sector, the project will also support the EU’s eSAF targets. Increased utilisation of by-products will create additional financial value for Outokumpu, while supporting Europe’s energy independence and clean energy transition.
“At the core of our decarbonisation strategy”
Commenting on the partnership, Martti Sassi, President of Outokumpu’s Ferrochrome Business Area, said: “Decarbonisation is at the core of Outokumpu’s strategy and demonstrates our ambition to lead in sustainable materials and technologies. We are continuously exploring new and 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 generating financial value for Outokumpu. Our partnership with Norsk e-Fuel shows that Outokumpu’s commitment to sustainability extends beyond low-emission stainless steel and ferrochrome production to the utilisation of our by-products.”
“Tornio is an ideal location for competitive eSAF production”
Lars Bjørn Larsen, Chief Commercial Officer of Norsk e-Fuel, highlighted the strong synergy created by the partnership, stating: “Our collaboration with Outokumpu brings together two companies with complementary strengths and a shared ambition to advance the energy transition in Finland and across Europe. Outokumpu’s industrial platform and available by-product streams, combined with our experience in developing Power-to-Liquid projects, provide a strong foundation for competitive eSAF production in Tornio. We appreciate the openness and ambition Outokumpu brings to this partnership and look forward to assessing the potential of this eSAF project, which will support both aviation decarbonisation and Europe’s energy resilience.”
Finland among Europe’s most attractive regions for eSAF
With its clean electricity supply, growing hydrogen economy and strong industrial infrastructure, Finland is considered one of the most attractive locations in Europe for eSAF production. The Bothnian Bay region in particular stands out due to access to large volumes of recycled carbon streams.
At Outokumpu’s Tornio site, the ability to source carbon monoxide flows from a single point at consistently high volume and concentration throughout the year offers lower capital and operating costs compared to projects requiring CO₂ capture. This makes the region especially suitable for large-scale and cost-efficient eSAF production.
Tornio aims to become a circular economy hub
The planned facility will serve as a flagship project for Outokumpu’s circular economy vision in Tornio. The company aims to develop multiple new projects and partnerships in the Koivuluoto area focused on valorising industrial by-products.
Tommi Silvennoinen, Senior Vice President, Strategic Partnerships – CCUS and New Energy Solutions at Outokumpu, commented: “Our Tornio site is already one of Europe’s largest recycling centres, processing more than one million tonnes of scrap annually. Our long-term vision is for the Koivuluoto area to host a number of new projects that utilise our additional by-product streams and bring new partners into the ecosystem.”
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