Fortum partners with Rio Tinto, Vargas, & others to drive low-carbon aluminium innovation in Finland

Fortum, leveraging decades of expertise in the Nordic energy market, will support a feasibility study aimed at exploring low-carbon aluminium manufacturing opportunities in Kokkola and Kronoby, Finland. Fortum will focus on developing long-term hedging strategies as the energy partner and ensuring electricity sourcing from its current and future generation assets.

Image Source: Fortum

If established, the aluminium manufacturing facility would be the first greenfield primary aluminium development in continental Europe in over three decades, substantially enhancing the availability of domestic low-carbon aluminium in the region. The facility is projected to require approximately 7 TWh of electricity each year.

"Finland's existing almost fully CO2-free power generation mix and strong pipeline of new wind and solar projects are key to the decarbonisation of various industrial sectors. We are pleased to be able to support the Arctial project company with our Nordic power market expertise and by providing our insights to their feasibility study," said Executive Vice President Simon-Erik Ollus at Fortum.

Collaboration with global industry-leading partners

The Arctial project company will lead the feasibility study in collaboration with its global industry-leading partners: Rio Tinto, Vargas, Mitsubishi Corporation, Fortum, and Finnish Industry Investment (Tesi). The study will evaluate the potential for low-carbon aluminium manufacturing, considering social, technical, environmental, and commercial factors.

Fortum's strategic priorities focus on providing reliable, clean energy and advancing industrial decarbonisation across the Nordics. With an optimal clean energy mix in its power generation portfolio, Fortum collaborates with industrial partners to develop solutions to reduce their carbon footprint.

"We have a strong hypothesis centred around low-carbon aluminium produced in Europe, for Europe. The first step is to conduct a detailed feasibility study, and we look forward assessing the opportunity together with the municipalities of Kokkola and Kronoby, Finnish authorities, and our leading partners," added Torbjörn Sternsjö, CEO of project company Arctial.

The project organisation aims to make a final investment decision on the production facility between 2026 and 2027. This decision will be informed by a thorough evaluation process, with the feasibility study serving as a pivotal first step.