Arctial, Finland, welcomed three new industry leaders to its project partnership, including ABB, Fortum, and Siemens Financial Services. The companies will assist Arctial in conducting a feasibility study to assess the possibility of establishing low-carbon aluminum production in Finland.
“We are thrilled to welcome our new partners,” said Torbjörn Sternsjö, CEO of Arctial. “Beyond their investments, they bring invaluable strategic insights, knowledge, and networks. Arctial’s partnership-driven approach will enable us to effectively assess this opportunity, thanks to highly relevant industrial expertise.”
Arcitial is the company leading the project. During the feasibility study, which is the first step of the initiative, the company will consider the social, technical, environmental, and commercial aspects of building a greenfield smelter in Kokkola and Kronoby, Finland. If realized, this facility would be the first greenfield primary aluminum development in continental Europe in over 30 years, significantly boosting the supply of domestic low-carbon aluminum.
Establishing a European greenfield aluminum operation is highly attractive, as Europe is a significant net importer of aluminum. The demand for aluminum is rapidly increasing due to the energy transition, ambitious decarbonization targets from end-customers, and a focus on lightweight materials. Geopolitical factors and regulatory support further enhance the need for European production.
With the addition of these three new companies, the Arctial project now includes Rio Tinto, Mitsubishi Corporation, ABB, Fortum, Siemens Financial Services, Tesi, and Vargas. As previously communicated, Rio Tinto will provide access to its proven state-of-the-art AP60 technology and Fortum will support the project as a strategic energy partner.
ABB is a global technology leader in electrification and automation. The company will focus on assessing the scope of electrification and automation for the project, which will involve “the use of high power rectifiers, high voltage switchgear, transformers, and substations” (per Packaging Europe).
“Our investment and commitment of expertise to Arctial’s low-carbon aluminum project reflects our excitement at being part of this generational development; it is a real boon as electrical engineers to be part of such an initiative from the outset,” explained Joachim Braun, Division President, ABB Process Industries. “We have gained insight into the impacts this will have across the European supply chain for industries and consumers and know that our technological influence can help this development become reality sooner. It’s just the beginning of the journey, but we know it can lead to a leaner, cleaner future for all.”
Fortum Oyj is a Finnish state-owned energy company. As the energy partner, the company will support in long-term hedging strategies related to a potential facility and electricity sourcing from its existing and new generation assets. “The partnership with Arctial is important to us,” said Simon-Erik Ollus, executive vice president, Corporate Customers and Markets, Fortum. “We are taking determined steps in Finland to reduce industrial carbon emissions. This study plays a significant role in that effort.”
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.