4.12.2024

Tesi joins industrial project company to assess the possibility of a major low-carbon aluminum production investment in Finland

Tesi (Finnish Industry Investment Ltd) is collaborating with leading international industrial, energy, and climate technology companies to explore the possibility of establishing a new low-carbon aluminum production facility in the Kokkola and Kronoby region of Finland. If realized, the plant would be the first new primary aluminum production facility in continental Europe in over 30 years, significantly improving the availability of low-carbon aluminum in the region.

To kick off the project, a new project company named Arctial has been established. Its mission is to conduct a feasibility study assessing the project’s social, technical, environmental, and commercial viability. The project company will finance the evaluation phase, with partners contributing industrial expertise and technological support. Initial funding is provided by Rio Tinto, Mitsubishi Corporation, Vargas and Tesi.

Tesi participates as a local anchor investor in the project company. In alignment with its new industrial policy role, Tesi can join large-scale industrial projects alongside private investors. Typically, these project companies raise equity funding in the initial phases to advance their initiatives.

Low-carbon aluminum for Europe and Europeans

Today, Europe is a significant net importer of aluminum, with demand rapidly increasing due to the energy transition, stringent decarbonization targets, and growing use of lightweight materials. Geopolitical factors and regulatory frameworks further underline the need for European production, making this greenfield aluminum project highly attractive.

“We have a strong hypothesis around low-carbon aluminum produced in Europe, for Europe. The first step is to conduct a detailed feasibility study, and we look forward to evaluating the project’s viability together with the city of Kokkola, the municipality of Kronoby, Finnish authorities, and our leading partners,” says Torbjörn Sternsjö, CEO of the project company Arctial.

The project organization estimates that a final investment decision on the production facility will be made during 2026–2027. This decision will follow a comprehensive evaluation process, with the feasibility study serving as the crucial first step.

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About Arctial

Project company Arctial will conduct a feasibility study of low-carbon aluminium production in Finland. Rio Tinto, Mitsubishi Corporation, Vargas, and Tesi are jointly financing the project company and the assessment phase while Fortum supports the feasibility study as a strategic energy partner. The partners will actively support with industrial expertise and technology. As part of the project, Rio Tinto will provide access to its state-of-the-art technology and Fortum will assist in long-term hedging strategies and electricity sourcing from its existing and new production assets. Arctial anticipates making a final investment decision regarding a production facility during 2026−2027. This decision will follow a comprehensive evaluation process, with the feasibility study serving as a crucial initial step. www.arctial.com