By: ICN Bureau
Last updated : January 11, 2026 10:36 pm
Enabling 200,000-ton direct emission reduction for Outokumpu
Sustainable stainless steel leader Outokumpu and Nordic Power-to-Liquid developer Norsk e-Fuel have signed a Memorandum of Understanding (MoU) to develop a Sustainable Aviation Fuel (SAF) production facility.
Located adjacent to Outokumpu’s Koivuluoto mill in Tornio, Finland, the plant will focus on CO-to-SAF technology. Norsk e-Fuel is scheduled to begin a feasibility study in 2026, with a potential investment decision in 2028 and a target production launch 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 tons of eSAF annually, supporting the EU’s eSAF quota and advancing the decarbonization of aviation – one of the hard-to-abate sectors. Once operational, the eSAF plant would create financial value for Outokumpu through increased side stream utilization.
The project will support Outokumpu’s decarbonization journey by allowing the company to reduce direct CO₂ emissions by 200,000 tons 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 is spearheading a major synthetic fuel project, leveraging its expertise and partners for engineering, funding (a projected €1.2-1.5 billion investment), and customer acquisition, aiming to create ~250 local jobs while developing sustainable aviation fuel (SAF) to decarbonize the airline industry.
“Decarbonization 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 utilization 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 decarbonization and Europe’s energy resilience”, says Lars Bjørn Larsen, CCO at Norsk e-Fuel.