Industrial partnership to conduct a feasibility study of low-carbon aluminium production in Kokkola and Kronoby, Finland.

Feasibility study of low-carbon aluminium production in Europe, for Europe

Arctial is a project company that will conduct a feasibility study of low-carbon aluminium production in Finland across social, technical, environmental and commercial dimensions.

Today, Europe is a significant net importer of aluminium. Demand for low carbon aluminium is growing rapidly driven by the energy transition, ambitious decarbonisation targets of end-customers and focus on light-weight materials. Geopolitics and regulatory tailwinds are further boosting the need for European production. This makes the establishment of a European greenfield aluminium operation attractive.

If realised, Arctial’s manufacturing facility would mark the first greenfield primary aluminium development in continental Europe in over 30 years, significantly boosting the supply of domestic low-carbon aluminium.

The feasibility study will start in the beginning of 2025. After a comprehensive evaluation process, with the feasibility study serving as a crucial first step, Arctial anticipates making a final investment decision regarding the manufacturing facility during 2026-2027.

Key facts

~2% of global CO2 emissions
comes from the aluminium industry

Feasibility study
Project phase

Kokkola and Kronoby, Finland
Location

2026-2027
Final investment decision (FID)

Backed by leading partners with industry and technology expertise

Arctial has a partner-driven approach that provides access to leading technology, key input factors and highly relevant industrial expertise, enabling the project company to effectively assess this opportunity. Rio Tinto, Mitsubishi Corporation, Vargas, and Tesi are financing the project company and the feasibility study, while Fortum supports the feasibility study as a strategic energy partner.

Rio Tinto’s initial contribution includes access to its industry-leading AP60 technology, which is among the most efficient aluminium technology currently available at commercial scale. Fortum will support in long-term hedging strategies related to the potential facility and electricity sourcing from both existing and new generation assets. Arctial has also signed a Letter of Intent (LOI) with Finland’s transmission system operator Fingrid to secure grid connection for the project.

Strategic location for low-carbon aluminium production

Arctial has identified a strategic location in Kokkola and Kronoby, Finland, renowned for its strong industrial heritage in minerals. The site offers access to CO2-free electricity, the port of Kokkola and optimised infrastructure and logistics setup. This location benefits from a robust local and regional talent pool, combined with international expertise and state-of-the-art technology.