Major companies explore low-carbon aluminum production in Kokkola and Kruunupyy

Major international companies specializing in industry, energy, and climate technology are exploring the potential for producing low-carbon aluminum in the region of Kokkola and Kruunupyy. If the project moves forward, it would mark the establishment of the first new primary aluminum production facility in continental Europe in over three decades, significantly enhancing the availability of low-carbon aluminum in Europe.

To facilitate this initiative, a project company named Arctical has been created. This company is backed by prominent stakeholders, including Rio Tinto, the world’s second-largest mining firm, the technology giant Mitsubishi Corporation, investment firm Vargas, and Tesi, a venture capital firm owned by the Finnish government. Arctical plans to conduct a feasibility study for the project, with an expected investment decision anticipated between 2026 and 2027.

In addition to evaluating profitability, the study will also consider social, technical, environmental, and commercial aspects of the project. Arctical points out that the region is particularly favorable for low-carbon aluminum production. The Kruunuportti industrial area, located at the border of Kokkola and Kruunupyy, boasts several advantages, including access to CO2-free electricity, a strong tradition in the metal industry, port facilities, and an efficient infrastructure and logistics network.

Fortum, an energy company, is supporting this endeavor by providing electricity and developing a power protection strategy. Additionally, Arctical has signed a memorandum of understanding concerning grid connection with the national transmission system operator, Fingrid. Further details on the project are forthcoming.