Project Arctial is a partnership of leading industrial, energy, and climate technology focused companies that will conduct a feasibility study regarding a low-carbon aluminium manufacturing facility in Kokkola and Kronoby, Finland. The initiative is financed by ABB, Fortum, Mitsubishi Corporation, Rio Tinto, Siemens Financial Services, Tesi, and Vargas.

Europe is today a significant net importer of aluminium. At the same time, demand 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 aluminium production. These factors make the establishment of a European greenfield aluminium operation relevant and attractive.

In the feasibility study, Arctial will assess the opportunity of establishing a low-carbon aluminium manufacturing facility across social, technical, environmental and commercial dimensions.

Arctial has identified a strategic location in Kokkola and Kronoby, Finland, renowned for its strong industrial heritage in minerals. The location offers access to CO2-free electricity, optimised infrastructure and logistics setup, as well as to a robust local and regional talent pool.

If realised, Arctial’s manufacturing facility is expected to utilise Rio Tinto’s industry-leading AP60 technology, which is among the most efficient aluminium technology proven and available at commercial scale, and CO2-free electricity. The carbon footprint would be 40 percent lower than the current European average and 4 times lower than the global average. The production would also feature high vertical integration, strategic supply chain partners and cost-leadership.  

In terms of product properties, such as quality, alloy chemistry, shapes, mechanical and physical properties, Arctial’s products will not differ from the rest of the industry.

Arctial anticipates making a final investment decision regarding a manufacturing facility in Kokkola and Kronoby during 2026−2027. This decision will follow a comprehensive evaluation process, with the feasibility study serving as a crucial initial step.

Less than 4 million tonnes of primary aluminium were produced in Europe in 2023 (source: European Aluminium). At the same time, Europe’s demand for primary aluminium exceeded 10 million tonnes, with a production deficit of over 60%. This highlights the urgent need for establishing a European greenfield aluminium manufacturing.

Aluminium production requires a significant amount of energy. Fortum is supporting Arctial in long-term hedging strategies related to a potential facility and electricity sourcing from Fortum’s 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.

Arctial will conduct a feasibility study to assess the opportunity of establishing a low-carbon aluminium manufacturing facility across social, technical, environmental, and commercial dimensions. This study will include reviewing the sourcing of raw materials from suppliers with robust human rights and sustainability credentials, preferably from within Europe.

The current supply of both primary and recycled aluminium is insufficient to meet the rapidly growing demand. This demand is driven by the energy transition, ambitious decarbonisation targets of end-users, and a focus on light-weight materials. Consequently, there is a need for new low-carbon primary aluminium production from raw materials, as well as expanded recycling operations.

In the feasibility study, Arctial will evaluate the potential for establishing a low-carbon primary aluminium manufacturing facility as well as of developing recycling operations at a later stage.

If realised, the carbon footprint of Arctial’s manufacturing facility is expected to be 40 percent lower than the current European average and 4 times lower than the global average due to latest technology and CO2-free electricity. An Environmental Impact Assessment (EIA) will be carried out according to Finnish law as part of the feasibility study, to identify and help mitigate possible negative impacts. The project will use the best available technologies to reduce and remove as much as possible of the emissions, waste, and other pollutants.

We have early discussions with possible off-takers and future customers, for example within automotive, energy, packaging, building and construction and industrial customers. It’s clear that demand for aluminium is growing rapidly driven by the energy transition, ambitious decarbonisation targets of end-customers and focus on light-weight materials.

If a low-carbon aluminium manufacturing facility is established in Kokkola and Kronoby, it would position Finland as a key player in reducing carbon emissions within the European aluminium industry and in boosting European aluminium supply.

This initiative would introduce a completely new industry to Finland, creating thousands of direct and indirect jobs and generating substantial export value and tax income. It would also fuel Finland’s industrial strength, and the growth of key industries tied to aluminium, enriching the Finnish landscape in metallurgy, material technology, and process technology.

Under the leadership of CEO Torbjörn Sternsjö, Arctial is assembling a professional and experienced team to drive the feasibility study forward. Supported by a network of esteemed industry advisors and partners, Arctial is poised to conduct a comprehensive evaluation process across social, technical, environmental and commercial dimensions.

Arctial’s partners – ABB, Fortum, Mitsubishi Corporation, Rio Tinto, Siemens Financial Services, Tesi, and Vargas – are financing the project company and the comprehensive evaluation process, with the feasibility study serving as a crucial first step. The financing will be sufficient until a final investment decision is made.

Arctial refers to the potential site’s northern location as well as to aluminium. It should be pronounced as “Arc-ti-al.” ”Arc” as the beginning of “Arctic”, “ti” like a cup of “tea” or a golf “tee” and “al” as the beginning of “aluminium”.