Outokumpu and Norsk e-Fuel to Cooperate on Synthetic Aviation Fuel Production

Outokumpu Oyj and Norwegian company Norsk e-Fuel have signed a Memorandum of Understanding (MoU) to advance the development of a synthetic aviation fuel (eSAF) production plant. The facility will convert carbon monoxide (CO) byproduct from Outokumpu's ferrochrome production into sustainable fuel. The development project for this CO-to-SAF plant is planned to be established in close proximity to Outokumpu's stainless steel works in Koivuluoto, near Tornio, Finland.

Norsk e-Fuel will initiate a feasibility study in 2026. Following a positive outcome, an investment decision is anticipated around 2028, with production startup potentially planned for 2032. Outokumpu would supply the carbon monoxide streams as feedstock for the plant, which is projected to produce 80,000 to 100,000 tons of eSAF annually. This production would contribute to meeting European Union eSAF quotas and advance the decarbonisation of aviation, a sector with significant challenges in reducing emissions.

The project is expected to create financial value for Outokumpu through enhanced utilization of its byproducts. Simultaneously, it supports the company's decarbonisation pathway by enabling a direct reduction of CO2 emissions by 200,000 tons per year, approximately 20 percent of Outokumpu's global direct emissions. Furthermore, the initiative contributes to the EU's energy transition goals and strengthens Europe's resilience and strategic independence by expanding domestic fuel supply. Norsk e-Fuel will lead the project development, secure financing, and establish offtake agreements for the produced fuels. The investment is estimated at approximately EUR 1.2–1.5 billion and is expected to create around 250 new local jobs.

"Decarbonisation is at the core of Outokumpu's strategy and underlines our vision to be a leader in sustainable materials and technologies," said Martti Sassi, Head of Ferrochrome business at Outokumpu. "We are continuously seeking smart ways to reduce climate gas emissions along the entire value chain. The partnership with Norsk e-Fuel demonstrates that Outokumpu's commitment to sustainability extends beyond low-emission stainless steel and ferrochrome production to include the utilisation of our byproducts."

Lars Bjørn Larsen, CCO of Norsk e-Fuel, added: "The collaboration with Outokumpu brings together two companies with complementary strengths and a shared drive to advance the energy transition in Finland and Europe. Outokumpu's industrial platform and available byproducts, combined with our expertise in Power-to-Liquid projects, form a strong basis for competitive eSAF production in Tornio."