Arctial Plans to Advance Europe's First Low-Carbon Aluminum Project in Finland in 30 Years [SMM Aluminum Industry Conference]

Published: Apr 30, 2025 19:10

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On April 17, at the AICE 2025 SMM (20th) Aluminum Industry Conference and Aluminum Industry Expo—Main Forum, co-hosted by SMM Information & Technology Co., Ltd., SMM Metal Trading Center, and Shandong Aisi Information Technology Co., Ltd., and co-organized by Zhongyifeng Jinyi (Suzhou) Technology Co., Ltd. and Lezhi County Qianrun Investment Service Co., Ltd., Arctial CEO Torbjörn Sternsjö introduced a European low-carbon aluminum greenfield project unseen in 30 years. First, he introduced Arctial. He stated that the project company Arctial will conduct a feasibility study on low-carbon aluminum production in 2025. The company's starting point: attractive market conditions to establish a European greenfield aluminum business; working method: a partnership-driven approach enabling expertise and the best available technology; study scope: Arctial will conduct technical and financial feasibility studies in 2025, assessing economic, social, and environmental impacts. Industrial partnerships: establishing partnerships with leading industrial, energy, and climate technology companies: Rio Tinto, Mitsubishi Corporation, Fortum, ABB, Siemens, Tesi, and Vargas. He introduced that the final investment decision will be made from 2026 to 2027. The new smelter will be located in Kokkola, Finland: he elaborated on Kokkola's large industrial area, transportation and infrastructure, and Finland's industrial culture and metallurgical traditions. The smelter will have an annual capacity of 550,000 mt of low-carbon primary aluminum, using Rio Tinto's AP60 reduction technology, and is expected to start production in 2029. Additionally, he elaborated on Arctial's significant position in the aluminum value chain. Why Kokkola, Finland? Kokkola becomes Europe's primary aluminum manufacturing base. Infrastructure and energy: a large industrial area with well-developed infrastructure, connected to the power grid, and close to Kokkola Port. Talent and industry knowledge: numerous senior engineers and R&D talents, leading industry expertise, industrial culture, and metallurgical traditions. Sustainability and industry circularity: sustainability leaders and industrial circular development in Finland and Kokkola. He elaborated on the Kokkola plant overview—evaluated based on the feasibility study, and the renderings of the low-carbon aluminum production platform assessed in the feasibility study. ► Downstream production plan for the smelter: continuous casting equipment should be located near the smelter; future downstream operations directly processing molten metal; collaborating with recycling companies to establish a closed-loop system with customers; Arctial is willing to work hand in hand with downstream partners. European primary aluminum ► Aluminum is a key metal for Europe's green transition. Low-carbon aluminum: key to Europe's energy transition and competitiveness. Aluminum's lightweight and recyclable properties make it an ideal material for decarbonizing various industries, such as transportation, energy, consumer electronics, packaging, and construction. ► Significant production deficit—Europe highly dependent on primary aluminum imports. According to European aluminum production 2023 (EU + EFTA + UK) data: in 2023, Europe's primary aluminum production was less than 4 million mt. Meanwhile, Europe's demand for primary aluminum was more than double its production—this gap is filled by imports. This highlights the urgent need to establish new green primary aluminum production sites in Europe. The aluminum industry accounts for 2% of global CO2 emissions. If realized, Arctial's manufacturing facility's carbon footprint is expected to be 40% lower than the current European average and four times lower than the global average, thanks to the use of the latest technology and zero-CO2 electricity. Additionally, he introduced the next steps for Arctial, including collaboration opportunities in the global aluminum business community and the project timeline. 》Click to view the special report on the AICE 2025 SMM (20th) Aluminum Industry Conference and Aluminum Industry Expo.

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