Norwegian synthetic fuel plant in Imatra delayed over raw material uncertainty

A Norwegian company’s planned synthetic aviation fuel plant in Imatra will be postponed by at least two years due to uncertainty over the availability of biogenic carbon dioxide in Finland, Yle reports.

Norsk-e-Fuel, which had previously targeted a 2029–2030 start for the facility, now expects operations to begin no earlier than 2033–2034. The company’s commercial director, Lars Bjørn Larsen, cited the need to first complete a similar inland project in Alby, Sweden, and apply those lessons to the Imatra plant.

The €2 billion investment, announced in late 2024, was projected to create over 100 jobs and produce 80,000 tons of synthetic kerosene annually. However, Larsen stated that final investment decisions for Imatra—and other Finnish sites—hinge on securing a reliable supply of biogenic CO₂, a critical feedstock for e-kerosene production.

“Without clarity on Finland’s biogenic CO₂ capture plans, we cannot proceed with investments,” Larsen said. The company is also assessing grid capacity for the Pelkola industrial site in Imatra, where it has reserved land adjacent to Ovako’s steel plant.

Finland’s pulp and paper industry, concentrated in regions like Imatra and Rauma, could supply biogenic CO₂ from mill flue gases. Yet only Metsä Group has advanced concrete plans, proposing a 100,000-ton annual capture facility at its Rauma pulp mill by 2027 at the earliest. Industry association Metsäteollisuus ry noted that market demand for CO₂-derived products remains uncertain.

Norsk-e-Fuel previously abandoned a €2 billion plant in Kotka in 2025 due to similar feasibility concerns. The company has not ruled out developing its own CO₂ capture solutions in Finland if third-party supply falls short.