8th of January 2026, Oslo (Norway), Helsinki (Finland)
Outokumpu, the global leader in sustainable stainless steel, and Norsk e-Fuel, a Nordic pioneer in Power-to-Liquid project development, have signed a Memorandum of Understanding (MoU) to work together towards realizing a CO-to-SAF (Sustainable Aviation Fuel) production plant to be located next to Outokumpu’s stainless steel mill in Koivuluoto, Tornio, Finland. Under the signed MoU, Norsk e-Fuel will start a feasibility study in 2026. If the study leads to positive results, Norsk e-Fuel anticipates taking an investment decision around 2028, with production start planned for 2032.
Conceptual visualization by Norsk e-Fuel for orientation purposes only
Outokumpu would provide carbon monoxide (CO) side streams from its ferrochrome production as a feedstock for the production of 80,000-100,000 tons of eSAF annually, supporting the EU’s eSAF quota and advancing the decarbonization of aviation – one of the hard-to-abate sectors. Once operational, the eSAF plant would create financial value for Outokumpu through increased side stream utilization. The project will support Outokumpu’s decarbonization journey by allowing the company to reduce direct CO₂ emissions by 200,000 tons annually, representing 20% of Outokumpu's global direct emissions. In addition, it would contribute to the EU’s targets for the clean energy transition and increase the EU’s resilience and strategic independence through strengthening domestic fuels supply.
Norsk e-Fuel will lead the project development, drawing on its longstanding experience and strong partner network to carry out engineering, secure financing and engage future customers for the produced fuels. Responsible for funding the project, Norsk e-Fuel estimates the investment to be approximately EUR ~1.2–1.5 billion while expecting to create approximately 250 new jobs locally.
“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 – one of the best locations in Europe for SAF production
Driven by abundant supply of clean electricity, public support for hydrogen economy development and access to relevant resources, Finland ranks among the best locations in Europe for eSAF production*. Within Finland, the Bothnia Bay region stands out due to its robust industrial infrastructure and access to recycled carbon streams with Outokumpu Tornio site offering the most competitive carbon sources available. Its carbon monoxide (CO) stream is continuously available throughout the year in high volumes and concentrations and is collected at a single point. This enables eSAF production with lower investment requirements and operating costs compared to projects based on captured CO₂. As a result, Outokumpu Tornio site provides an optimal location for large-scale, cost-efficient eSAF production in Europe.
“This collaboration with Outokumpu is a natural addition to our growing project portfolio in Finland. It complements our ongoing developments in Rauma and Imatra, where we continue to progress as planned. Together, these projects reflect our long-term approach: building e-Fuel capacity step by step, in close collaboration with strong industrial partners.”, says Nicolai Haaber Junge, Business Developer - Energy Strategy and Partnership at Norsk e-Fuel.
The planned eSAF production facility is intended to become a benchmark project of Outokumpu's circular ecosystem in the Koivuluoto area of Tornio. The cooperation with Norsk e-Fuel will mark the first industrial development in the area supporting Outokumpu’s ambition to build a vibrant circular economy ecosystem.
“Our Tornio site is already among the largest recycling hubs in Europe, processing over one million tonnes of scrap annually. Our long-term vision is to host multiple new projects at the Koivuluoto area that would utilize our other side streams and attract new partnerships to join the ecosystem”, says Tommi Silvennoinen, Senior Manager, Strategic Partnerships in CCUS and New Energy Solutions at Outokumpu.
*) Uusi väitöstutkimus: Suomi on Euroopan paras maa sähköpolttoaineiden valmistamiseen – syntymässä miljardimarkkinat | Etelä-Karjala | Yle (in Finnish)
---