Fortum and Outokumpu Join Forces to Decarbonize Steel Manufacturing with SMR Technology

Fortum and Outokumpu Join Forces to Decarbonize Steel Manufacturing with SMR Technology

(IN BRIEF) Outokumpu, a global leader in sustainable stainless steel, and Fortum, a top Nordic clean energy company, have signed an agreement to explore the decarbonization of Outokumpu’s steel manufacturing operations using Small Modular Reactors (SMR), a new nuclear technology. The initial phase of the agreement will focus on identifying potential business models and technical solutions for further development, with the goal of constructing an SMR in Finland. The Tornio region in Finland, where Outokumpu’s largest mill is located, is a potential location for the project. The collaboration aligns with Outokumpu’s commitment to achieving the Science-Based Targets initiative’s 1.5°C climate target and Fortum’s strategy to drive decarbonization and growth for Nordic industries through clean energy and CO2-free solutions.

(PRESS RELEASE) HELSINKI, 23-Mar-2023 — /EuropaWire/ —  Outokumpu (HEL: OUT1V), the largest producer of stainless steel in Europe, and Fortum, a top Nordic clean energy company, have signed a Memorandum of Understanding (MoU) to collaborate on decarbonizing Outokumpu’s steel manufacturing operations using Small Modular Reactors (SMR), a developing nuclear technology. The agreement sets in motion a long-term process, with the aim to assess the possibility of constructing an SMR in Finland. The first phase will involve identifying potential business models and technical solutions for further development. Any future investment decisions will be made at a later stage.

Outokumpu has pledged to achieve the Science-Based Targets initiative’s 1.5°C climate target. To achieve its ambitious sustainability goals, maintaining and expanding the use of low-carbon energy is critical. Both Outokumpu and Fortum are critical players in ensuring energy efficiency, reducing emissions, and increasing competitiveness in Finland. The Tornio region in Finland, where Outokumpu’s largest mill is located, is a potential location for the project.

Fortum’s strategy aims to promote decarbonization and growth for Nordic industries by offering clean energy and CO2-free solutions to its clients, in line with their objective.

“We are at the forefront of decarbonizing the steel industry. Looking into emerging technologies in our energy supply, is a natural step in our ambition to reduce CO₂ emissions. In addition to wind, solar, and hydropower, energy intensive industries and the whole society needs stable and CO₂-free electricity generation. Today nuclear power is the only alternative for this. Therefore, we are excited to explore the possibilities offered by small modular reactors together with Fortum, as part of our sustainability journey,” says Heikki Malinen, President and CEO, Outokumpu. 

“Outokumpu is Finland’s largest electricity buyer. In order to the steel industry to remain competitive in Finland, we need to have a sufficient amount of low-carbon and cost-effective energy,” Malinen continues.

“Decarbonizing heavy industries is a prerequisite for reaching carbon-neutrality in Europe and this requires significant amounts of clean energy. The Nordic power market is extremely competitive when it comes to clean and affordable power, and Fortum is one of the very few European companies that can deliver it reliably, when needed and at scale to our customers already today. In the future, however, more will be needed. So, we are pleased to start collaboration with a steel industry forerunner like Outokumpu to explore the future potential of new nuclear power in the Nordics,” says Markus Rauramo, President and CEO, Fortum.

Further information:

Päivi Allenius, VP – Communications & Brand at Outokumpu, tel. +358 40 753 7374

Outokumpu media desk, tel. +358 40 351 9840, e-mail media@outokumpu.com
International media: Laurent Leveugle, +358 40 542 2001, Head of Newbuild Feasibility Study, Fortum

Fortum Newsdesk, +358 40 198 2843, newsdesk@fortum.com

Outokumpu
Outokumpu is the global leader in stainless steel. The foundation of our business is our ability to tailor stainless steel into any form and for almost any purpose. Stainless steel is sustainable, durable and designed to last forever. Our customers use it to create civilization’s basic structures and its most famous landmarks as well as products for households and various industries. Outokumpu employs more than 8,000 professionals in close to 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki. www.outokumpu.com

Fortum
Fortum is a Nordic energy company. Our purpose is to power a world where people, businesses and nature thrive together. We are one of the cleanest energy producers in Europe and our actions are guided by our ambitious environmental targets. We generate and deliver clean energy reliably and help industries to decarbonise their processes and grow. Our core operations in the Nordics comprise of efficient, CO2-free power generation as well as reliable supply of electricity and district heat to private and business customers. For our ~5 000 employees, we commit to being a safe, and inspiring workplace. Fortum’s share is listed on Nasdaq Helsinki. fortum.com

SOURCE: Outokumpu Oyj