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 realising 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.

Outokumpu would provide carbon monoxide (CO) side streams from its ferrochrome production as a feedstock for the production of 80,000-100,000 tonnes of eSAF annually, supporting the EU’s eSAF quota and advancing the decarbonisation of aviation – one of the hard-to-abate sectors. Once operational, the eSAF plant would create financial value for Outokumpu through increased side stream utilisation. The project will support Outokumpu’s decarbonisation journey by allowing the company to reduce direct CO₂ emissions by 200,000 tonnes 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 €~1.2–1.5 billion while expecting to create approximately 250 new jobs locally.

'Decarbonisation 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 utilisation 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 decarbonisation and Europe’s energy resilience”, says Lars Bjørn Larsen, CCO at Norsk e-Fuel.