Energy partnership: Fortum & Arctial planning low-carbon aluminium in Europe

Europe needs low-carbon aluminium

Aluminium is an essential material in today’s world. It is found in transport, construction, power infrastructure and consumer technology. It is also essential for renewable energy systems, electric mobility and energy storage. With its many uses, aluminium plays an important part in the green transition.

However, primary aluminium production currently accounts for around 2% of global CO₂ emissions, making it one of the most energy-intensive industrial processes in the world. Reducing these emissions is critical if Europe is to meet its decarbonisation targets.

At the same time, demand for aluminium continues to rise, and Europe remains a net importer, heavily reliant on supplies from Russia, China, and the Middle East. With limited availability of recycled material, developing new low-carbon production capacity within the region is essential: not only to cut emissions but also to improve supply security, reduce geopolitical risks, and strengthen Europe’s industrial competitiveness.

Developing a new generation of aluminium production

In western Finland, Arctial Arctial - External link — with Fortum as its energy partner — is preparing the ground for Europe’s next step in aluminium production, the first greenfield smelter of its kind in continental Europe in more than 30 years.

Arctial, the project company leading the feasibility study, is driving the development of low-carbon aluminium production in Kokkola and Kronoby. Together with investors and partners, including ABB, Mitsubishi Corporation, Rio Tinto, Siemens, Tesi, Vargas and Fortum, the company is assessing the project’s technical, environmental, and commercial potential.

Finland provides an ideal setting for such a development, offering fossil-free power generation, a reliable grid, and a stable regulatory framework that supports industrial electrification and large-scale decarbonisation.

Designed for low emissions from the start

The planned facility would combine proven AP60 smelting technology, advanced digital controls and fossil-free electricity to produce around 550,000 tonnes of aluminium each year.

The ambition is to achieve a carbon footprint roughly 40% lower than the European average and up to 75% below the global average for primary aluminium. With an estimated annual power demand of 7 terawatt-hours, reliable access to clean energy and efficient use of it will be central to the project’s success.

If the feasibility study confirms its potential, a final investment decision is expected in 2026–2027, with production starting around 2029.

Energy partnership: Fortum’s role

Fortum invested in the Arctial project as it represents the kind of industrial transformation Europe needs, powered by electrification, innovation, and decarbonisation.

"We are excited to be a part of the Arctial partnership. Finland’s journey towards industrial decarbonisation is taking place right now. This feasibility study is therefore of great importance”, says Fortum Executive Vice President, Corporate Customers and Markets Simon-Erik Ollus.

Drawing on decades of experience in Nordic power markets and low-carbon generation, Fortum supports Arctial in creating solutions for fossil-free electricity sourcing, market participation and system flexibility. The company’s role focuses on several key areas:

• Fossil-free electricity sourcing: securing long-term access to reliable, low-carbon power.
• Risk management: developing long-term hedging strategies to stabilise costs and manage market volatility.
• Flexibility solutions: identifying ways to align industrial operations with the variability of renewable and nuclear generation.