Outokumpu and Norsk e-Fuel plan Tornio eSAF plant, converting CO side streams to cut emissions 200,000 tons annually.
Outokumpu, a global front-runner in sustainable stainless steel, has entered into a strategic collaboration with Norsk e-Fuel, a Nordic specialist in Power-to-Liquid fuel projects, to explore the large-scale conversion of industrial carbon side streams into sustainable aviation fuel. The companies have signed a Memorandum of Understanding (MoU) to jointly advance plans for a CO-to-SAF (Sustainable Aviation Fuel) production facility adjacent to Outokumpu’s stainless steel operations in Koivuluoto, Tornio, Finland.
As part of the agreement, Norsk e-Fuel will initiate a comprehensive feasibility study in 2026 to assess the technical, economic, and environmental viability of the project. Subject to favorable outcomes, the company expects to make a final investment decision around 2028, with commercial production targeted to begin in 2032. The initiative reflects a long-term commitment by both partners to accelerate industrial decarbonization while strengthening Europe’s clean energy value chains.
Under the proposed arrangement, Outokumpu would supply carbon monoxide (CO) side streams generated during its ferrochrome production process. These streams would be utilized as a key feedstock to produce approximately 80,000 to 100,000 tons of eSAF annually. This output would support the European Union’s emerging eSAF blending mandates and directly contribute to the decarbonization of aviation, a sector widely recognized as difficult to abate due to its reliance on energy-dense liquid fuels.
Once operational, the eSAF facility is expected to deliver significant environmental and economic benefits. For Outokumpu, the project would enable improved utilization of industrial side streams, creating new revenue opportunities while materially reducing climate impact. The company estimates that the initiative could cut its direct CO2 emissions by around 200,000 tons per year—equivalent to roughly 20% of Outokumpu’s global Scope 1 emissions. Beyond company-specific gains, the project would also support the EU’s clean energy transition goals and enhance regional energy security by expanding domestic production of sustainable fuels.
Norsk e-Fuel will take the lead in developing the project, leveraging its experience in Power-to-Liquid technologies and its established network of industrial and financial partners. The company will be responsible for engineering, securing financing, and engaging future customers for the produced eSAF. The total investment is currently estimated at approximately EUR 1.2–1.5 billion. In addition to climate benefits, the project is expected to generate substantial socio-economic value, including the creation of around 250 new jobs in the local Tornio region.
Commenting on the collaboration, Martti Sassi, President of Business Area Ferrochrome at Outokumpu, emphasized that decarbonization lies at the heart of the company’s strategy. He highlighted that the Kemi–Tornio industrial ecosystem provides a strong foundation for circular economy solutions that reduce emissions while delivering financial value. According to Sassi, the partnership demonstrates how Outokumpu’s sustainability ambitions extend beyond low-emission stainless steel and ferrochrome production to innovative uses of industrial side streams.
Lars Bjørn Larsen, Chief Commercial Officer at Norsk e-Fuel, noted that the partnership unites complementary strengths and a shared ambition to advance the energy transition in Finland and across Europe. He underscored that Outokumpu’s industrial platform, combined with Norsk e-Fuel’s project development expertise, creates a compelling basis for competitive eSAF production. Larsen added that the project has the potential to simultaneously support aviation decarbonization and strengthen Europe’s long-term energy resilience.
