Norway-based Norsk e-Fuel has unveiled plans to develop a large-scale green hydrogen-based sustainable aviation fuel (eSAF) plant in Finland, marking another major step in the decarbonisation of European aviation.
The proposed facility, designed to produce 80,000–100,000 tonnes of eSAF annually, will be developed in partnership with Outokumpu, a leading Nordic stainless-steel producer. The companies have signed a memorandum of understanding under which Norsk e-Fuel will carry out a feasibility study for the project, planned to be located next to Outokumpu’s stainless-steel mill in Tornio, northern Finland.
Industrial Synergies at the Core of the Project
Under the agreement, Outokumpu will supply carbon monoxide side streams from its existing ferrochrome production operations. These industrial by-products will be combined with green hydrogen to produce synthetic aviation fuel, creating a circular model that leverages existing industrial infrastructure.
The project will be led by Norsk e-Fuel, which will draw on its experience in power-to-liquid fuel development, as well as its network for project structuring and financing. The total investment is estimated at €1.2 billion to €1.5 billion, reflecting the scale and technological complexity of hydrogen-based eSAF production.
Timeline and Investment Outlook
Subject to the outcome of the feasibility study, Norsk e-Fuel expects to reach final investment decision (FID) around 2028, with construction targeted to begin in 2032. Once operational, the plant is expected to play a meaningful role in supporting EU-mandated eSAF quotas and reducing aviation’s carbon footprint.
Commenting on the collaboration, Lars Bjørn Larsen, Chief Commercial Officer at Norsk e-Fuel, said that Outokumpu’s industrial platform and available side streams, combined with Norsk e-Fuel’s project development expertise, provide a strong foundation for competitive eSAF production in Tornio.
Part of a Broader Nordic SAF Strategy
The Finnish project builds on Norsk e-Fuel’s growing Nordic pipeline. The company revealed plans last year for an 80,000-tonne-per-year hydrogen-based SAF plant in Sweden and is also advancing other initiatives in Finland, which it says continue to progress as planned.
These developments align with the European Union’s tightening sustainable aviation fuel mandates. From 2025, at least 2% of aviation fuel supplied at EU airports must be SAF, a figure set to rise to 70% by 2050. Within this, a specific sub-target requires 1.2% green hydrogen-based synthetic fuels by 2030, potentially increasing to 35% by mid-century.
Challenges Remain Despite Strong Policy Signals
While EU policy provides a clear demand signal, the industry continues to face challenges. High production costs and complex project economics are increasingly raising concerns about whether ambitious eSAF targets can be met at scale and on schedule.
Despite these hurdles, projects such as Norsk e-Fuel’s planned Tornio facility underscore the growing momentum behind hydrogen-based synthetic fuels as aviation searches for viable pathways to deep decarbonisation.