Outokumpu and Norsk e-Fuel explore eSAF production from ferrochrome side streams

Outokumpu and Norsk e-Fuel have signed a memorandum of understanding to jointly assess the development of a sustainable aviation fuel (eSAF) plant at Outokumpu’s stainless steel site in Tornio, Finland. The project would convert carbon monoxide (CO) side streams from ferrochrome production into synthetic aviation fuel, targeting both industrial decarbonisation and the EU’s growing demand for eSAF.

Under the MoU, Norsk e-Fuel plans to launch a feasibility study in 2026. Subject to positive results, an investment decision could follow around 2028, with production envisaged from 2032. The proposed plant would be located next to Outokumpu’s Koivuluoto site and is designed to produce around 80,000 to 100,000 tonnes of eSAF per year.

If realised, the project would allow Outokumpu to utilise carbon side streams that are currently not fully valorised. According to the companies, this would enable a reduction of around 200,000 tonnes of direct CO₂ emissions annually, equivalent to roughly 20% of Outokumpu’s global direct emissions, while also generating additional revenue from side-stream utilisation.

Norsk e-Fuel would lead project development, including engineering, financing and offtake discussions. The company estimates total investment at around EUR 1.2–1.5 billion and expects the project to create approximately 250 local jobs.

“Decarbonization is at the core of Outokumpu’s strategy,” said Martti Sassi, President for Business Area Ferrochrome at Outokumpu. He added that the partnership shows how the company’s sustainability focus extends “beyond low-emission stainless steel and ferrochrome production to the utilization of our side streams”.

From Norsk e-Fuel’s perspective, the cooperation combines complementary strengths. Lars Bjørn Larsen, Chief Commercial Officer at Norsk e-Fuel, said the partnership “creates a strong foundation for competitive eSAF production in Tornio” and supports both aviation decarbonisation and Europe’s energy resilience.

Finland is widely regarded as one of Europe’s most attractive locations for eSAF projects, supported by access to low-carbon electricity, public backing for hydrogen development and suitable industrial infrastructure. Within this context, Outokumpu’s Tornio site offers a continuously available, high-concentration CO stream collected at a single point, which could lower both investment and operating costs compared with CO₂-based eSAF concepts.

The project would represent the first major industrial development within Outokumpu’s planned circular economy ecosystem in the Koivuluoto area. “Our Tornio site is already among the largest recycling hubs in Europe,” said Tommi Silvennoinen, Senior Manager Strategic Partnerships, CCUS and New Energy Solutions at Outokumpu, pointing to the company’s longer-term ambition to attract additional partners and side-stream-based projects to the site.

Source and Photo: Outokumpu