Finnish steel producer Outokumpu has signed a memorandum of understanding with Norsk e-Fuel to explore the development of a facility to convert carbon monoxide side streams into sustainable aviation fuel.
A feasibility study will be undertaken this year on the proposed CO-to-SAF production plant, which would be located next to Outokumpu’s stainless steel mill in Tornio, Finland. Should the outcome of this study prove successful, Norsk e-Fuel plans to make an investment decision in 2028, with production planned to commence in 2032.
Carbon monoxide generated as a side stream from Outokumpu’s ferrochrome production would be used as a feedstock for the facility, with Norsk e-Fuel estimating that this could support annual production of between 80,000 and 100,000 tonnes of sustainable aviation fuel.
For Outokumpu, the use of the side stream would both increase material utilisation and enable the company to reduce around 200,000 tonnes per year of direct carbon dioxide emissions – around 20% of the firm’s total global direct emissions.
It’s estimated that the total investment cost for the facility would be in the range of €1.2 billion and €1.5 billion, with Norsk e-Fuel taking responsibility for project development. Once operational, the facility would create around 250 jobs.
Utilising side streams
“Decarbonisation is at the core of Outokumpu’s strategy and demonstrates our vision to lead in sustainable materials and technologies,” commented Martti Sassi, president of Outokumpu’s ferrochrome business area.
“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.”
Project pipeline
Lars Bjørn Larsen, CCO of Norsk e-Fuel added that the collaboration would also build on Norsk e-Fuel’s experience in Power-to-Liquid project development and its existing portfolio of projects in Finland.
“The collaboration with Outokumpu brings together two companies with complementary strengths and a shared ambition to advance the energy transition in Finland and Europe,” he commented. “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 decarbonisation and Europe’s energy resilience.”
The Tornio site is an ideal location for such a facility to be established, given that it can provide a continuous supply of carbon monoxide in high volumes and concentrations from a single collection point, Norsk e-Fuel added. Read more here.
