🇫🇮 Norsk e-Fuel plans eSAF plant in Tornio

The plant, located next to Outokumpu’s steel mill, will utilise carbon monoxide generated during Outokumpu’s production as a raw material. In the planned production, the carbon monoxide will not be chemically converted into carbon dioxide, which will simplify the production process.

Illustration of the location of the new plant in Koivuluoto, Tornio. Image: Norsk e-Fuel.

In accordance with the signed letter of intent, Norsk e-Fuel will commence a feasibility study in 2026. If the results of the study are positive, Norsk e-Fuel intends to make an investment decision in 2028, with production scheduled to start in 2032.

Outokumpu would supply carbon monoxide (CO) from its ferrochrome production as raw material for the annual production of 80,000–100,000 tons of eSAF. This would support the EU’s eSAF quota and contribute to reducing carbon dioxide emissions from air traffic. Once the eSAF plant is operational, it will create value for Outokumpu through the increased use of by-products.

The project supports Outokumpu’s carbon dioxide reduction process, as it will enable the company to reduce its direct CO₂ emissions by 200,000 tons per year, which corresponds to 20% of Outokumpu’s global direct emissions.

Norsk e-Fuel is leading the project’s development in terms of design work, securing financing, and acquiring future customers for the fuel produced. Norsk e-Fuel, which is responsible for financing the project, estimates the investment to be around €1.2–1.5 billion and expects it to create around 250 new jobs locally.

“We are constantly looking for new smart ways to reduce climate emissions throughout the value chain, and the Kemi-Tornio ecosystem provides an excellent platform for strengthening the circular economy while generating economic value for Outokumpu,” says Martti Sassi, Head of Outokumpu’s ferrochrome business.

Finland – one of the best places in Europe for SAF production

Outokumpu’s Tornio plant has a continuous supply of carbon monoxide (CO) throughout the year in large quantities and concentrations, which is collected from a single point. This enables eSAF production, which has lower investment requirements and operating costs than projects based on CO₂ capture. As a result, Outokumpu’s Tornio plant is an optimal location for large-scale, cost-effective eSAF production in Europe.

“The collaboration with Outokumpu is a natural addition to our growing project portfolio in Finland. It complements our ongoing projects in Rauma and Imatra, which are progressing as planned. Together, these projects reflect our long-term approach: building e-fuel production capacity step by step in close cooperation with strong industrial partners,” says Nicolai Haaber Junge, Business Developer – Energy Strategy and Partnerships, Norsk e-Fuel.

The planned eSAF production facility is intended to serve as a benchmark for Outokumpu’s circular economy ecosystem in the Koivuluoto area of Tornio. The collaboration with Norsk e-Fuel is the first industrial development project in the area that supports Outokumpu’s goal of building a vibrant circular economy ecosystem.

“Our Tornio site is already one of Europe’s largest recycling hubs, processing over one million tons of scrap metal per year. Our long-term goal is to implement several new projects in the Koivuluoto area that utilize our other by-products and attract new partners to join the ecosystem,” says Tommi Silvennoinen, Head of Strategic Partnerships for CCUS and New Energy Solutions at Outokumpu.

Originally published on 8 January 2026 by Both2nia.

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