Stainless steel producer Outokumpu and Nordic Power-to-Liquid developer Norsk e-Fuel have entered into a strategic collaboration to assess the development of a sustainable aviation fuel (eSAF) facility in northern Finland. The proposed plant would be located adjacent to Outokumpu’s stainless steel and ferrochrome operations in Koivuluoto, Tornio, creating a new industrial symbiosis between steelmaking and low-carbon fuel production.
The partnership is formalised through a Memorandum of Understanding, under which Norsk e-Fuel will launch a comprehensive feasibility study in 2026. Subject to positive results, the company expects to make a final investment decision around 2028, with commercial operations targeted for 2032.
Turning industrial side streams into aviation fuel
At the heart of the project is the use of carbon monoxide (CO) off-gas generated during Outokumpu’s ferrochrome production. Rather than being released, this continuous and high-purity CO stream would serve as feedstock for the production of 80,000–100,000 tonnes of eSAF per year, helping airlines meet the EU’s upcoming synthetic aviation fuel blending requirements.
Beyond supporting aviation decarbonisation, the project could deliver substantial climate benefits for Outokumpu itself. By redirecting CO side streams into fuel production, the company estimates a potential reduction of 200,000 tonnes of CO₂ annually, equivalent to around 20% of its global direct emissions.
A major industrial investment with local impact
Norsk e-Fuel will take the lead on project development, including engineering, financing and customer engagement for the synthetic fuels produced. The company estimates total investment requirements in the range of €1.2–1.5 billion, with the project expected to create approximately 250 jobs in the region.
“Decarbonisation is central to our strategy, and we are continuously looking for smart ways to reduce emissions while creating value,” said Martti Sassi, President of Business Area Ferrochrome at Outokumpu. “This collaboration shows how our industrial side streams can support new low-carbon value chains, while strengthening our circular economy ecosystem in Tornio.”
Lars Bjørn Larsen, Chief Commercial Officer at Norsk e-Fuel, highlighted the strategic fit between the two companies: “Outokumpu’s industrial platform and high-quality CO streams, combined with our Power-to-Liquid expertise, create a strong foundation for competitive eSAF production. Together, we are exploring a project that can support aviation decarbonisation while strengthening Europe’s energy resilience.”
Finland positioned as a leading SAF hub
Finland is increasingly recognised as one of Europe’s most attractive locations for synthetic aviation fuel production, thanks to abundant clean electricity, strong public backing for hydrogen and e-fuel development, and access to industrial carbon sources. Within Finland, the Bothnian Bay region stands out due to its established heavy-industry infrastructure.
The Tornio site offers particularly favourable conditions: the CO stream is available year-round, in high concentrations, and collected at a single point—significantly lowering both capital and operating costs compared to eSAF projects relying on captured CO₂.
“This project complements our other Finnish developments in Rauma and Imatra,” said Nicolai Haaber Junge, Business Developer at Norsk e-Fuel. “Step by step, and together with strong industrial partners, we are building a scalable e-fuel platform in Finland.”
Building a circular industrial ecosystem in Tornio
The planned eSAF facility would become the first major new industrial project within Outokumpu’s Koivuluoto circular economy zone, reinforcing the company’s ambition to turn Tornio into a hub for low-carbon industrial innovation.
“Our Tornio site already ranks among Europe’s largest recycling centres, processing more than one million tonnes of scrap annually,” said Tommi Silvennoinen, Senior Manager for Strategic Partnerships at Outokumpu. “Our long-term vision is to attract multiple new projects that make use of our side streams and strengthen the region’s circular economy.”
If realised, the collaboration between Outokumpu and Norsk e-Fuel could set a new benchmark for integrating heavy industry and sustainable fuel production—demonstrating how existing industrial assets can be leveraged to accelerate Europe’s transition to net-zero aviation.
