Outokumpu and Norsk e-Fuel to Study eSAF Plant in Tornio

Outokumpu Oyj and Norwegian company Norsk e-Fuel have signed a Memorandum of Understanding (MoU) to collaborate on building a carbon monoxide to sustainable aviation fuel (eSAF) production plant. The proposed facility would be located at Outokumpu's stainless steel mill site in Koivuluoto, Tornio, Finland.

Norsk e-Fuel will commence a feasibility study in 2026. If positive, the companies anticipate an investment decision around 2028, with production potentially starting in 2032. The plant aims to produce 80,000-100,000 tons of eSAF annually, supporting aviation's decarbonization efforts and meeting EU quotas.

Outokumpu would supply carbon monoxide (CO) side streams from its ferrochrome production as feedstock. This collaboration is expected to reduce Outokumpu's direct CO₂ emissions by up to 200,000 tons per year, representing 20% of its global direct emissions. The project would also create financial value for Outokumpu through enhanced side stream utilization.

Norsk e-Fuel is set to lead project development, including engineering, financing, and customer engagement, with an estimated investment of EUR 1.2–1.5 billion. The project is projected to create approximately 250 local jobs and aligns with Outokumpu's strategy to build a circular economy ecosystem in Tornio.