Outokumpu has initiated a collaboration with Norsk e-Fuel to convert carbon side streams into eSAF (Sustainable Aviation Fuel), resulting in an estimated 200kt emission reduction.

The two companies have signed a Memorandum of Understanding to work on realising a CO-to-SAF production plant, which will be adjacent to Outokumpu’s stainless steel mill in Koivuluoto, Tornio, Finland.

Martti Sassi, President of Business Area Ferrochrome at Outokumpu, said: “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.”

Outokumpu would provide carbon monoxide side streams from its ferrochrome production as a feedstock for the production 80kt to 100kt of eSAF annually.

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 creating around 250 new jobs locally.

Lars Bjørn Larsen, CCO at Norsk e-Fuel, said: “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 potential of this eSAF project that will support both aviation decarbonisation and Europe’s energy resilience.”

Norsk e-Fuel will start a feasibility study in 2026. If the study yields a positive result, Norsk e-Fuel anticipates taking an investment decision around 2028, with production startup planned for 2032.