Outokumpu and Fortum partner to accelerate industrial decarbonization in stainless steel production
Outokumpu Oyj
Press release
March 23, 2023 at 9.00 EET
Outokumpu and Fortum partner to accelerate industrial decarbonization in stainless steel production
Outokumpu, the global leader in sustainable stainless steel, and Fortum, a leading Nordic clean energy company, have signed a Memorandum of Understanding (MoU) to explore the decarbonization of Outokumpu’s steel manufacturing operations with emerging nuclear technology – Small Modular Reactors (SMR). The agreement initiates a long-term process with the aim to access potential construction of a SMR in Finland. In the first phase, the goal is to identify potential business models and technical solutions for further development. Any potential investment decisions will be made at a later stage.
Outokumpu has committed to the Science-Based Targets initiative’s 1.5°C climate target. Maintaining and increasing the share of low-carbon energy is important to achieving the company’s ambitious sustainability goals. Both Outokumpu and Fortum play a key role in ensuring energy efficiency, emission reduction and competitiveness in Finland. One possible option for the location would be Tornio region in Finland, where Outokumpu’s largest mill is situated.
“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.
In line with its strategy, Fortum wants to drive decarbonisation and growth for Nordic industries by providing clean energy and CO2-free solutions to its customers.
“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
