The Outokumpu mine in Kemi is set to become the world’s first CO2-neutral mine by 2025 – almost a third of the target will be achieved using renewable fuels from Neste. This decade is crucial for climate protection and Finland plays an important role as a pioneer in Europe. The manufacturer of the world’s lowest-emission stainless steel, Outokumpu, is accelerating the green transition in the steel industry with its measures.
As part of Outokumpu’s emissions reduction targets, the Kemi mine will become carbon neutral by 2025. In October, Outokumpu will take a significant step forward towards this goal by replacing fossil fuels with renewable solutions from Neste, the world’s leading producer of renewable diesel. Using renewable fuels will reduce the Kemi mine’s annual greenhouse gas emissions by a total of almost 11.3 million kilograms, which is equivalent to eliminating around 4,000 cars from Finnish traffic per year.
“Outokumpu is the only stainless steel manufacturer to have committed to ambitious climate targets in accordance with the 1.5 degree principle. We want to reduce direct and indirect emissions as well as our supply chain emissions by 42% per ton of stainless steel we produce by 2030 compared to the base year 2016. The carbon neutrality of the Kemi mine is a multi-million dollar investment and, when achieved, will result in a reduction of almost 40 tonnes in Outokumpu’s greenhouse gas emissions. The three main factors driving the Kemi mine’s carbon neutrality are the elimination of fossil fuels, the use of low-emission electricity and the replacement of natural gas and propane gas with other heating methods. Our first step is to transition to renewable fuels and find ways to reduce emissions across the value chain to bring our overall emissions as close to zero as possible. We are also exploring ways to offset the remaining emissions in our value chain that cannot otherwise be reduced using current technologies. Our goal is to make the mine in Kemi the first CO2-neutral mine in the world by 2025,” explains Heidi Peltonen, Vice President Sustainability at Outokumpu.
The Kemi mine is the only chrome mine in the European Union and is part of the sustainable supply chain of the Outokumpu steelworks in Tornio. Outokumpu’s mine in Kemi and the steelworks in Tornio are also major employers in Finland.
“Our own chrome mine is a competitive advantage. In connection with the development of the Kemi mine and the achievement of our sustainability goals, we recently completed a significant mining project. Between 2017 and 2023, we invested more than 280 million euros in deepening our underground mine from 500 to 1,000 meters. We want to ensure a continuous supply of chromium, an important raw material for stainless steel, for the next decades. The carbon footprint of the ferrochrome produced by our company is 67% lower than the industry average, which in turn means that our stainless steel has the lowest carbon footprint on the market,” explains Martti Sassi, President of the Ferrochrome Business Unit at Outokumpu.
Renewable fuels to support the green transition
Neste’s renewable heating oil and diesel, made from 100% waste and residual raw materials, are used to replace fossil fuels in the machines, trains and alternative energy sources at the Kemi mine and the Tornio steelworks, as well as for transport between mine and factory . The Kemi Mine and Tornio Steelworks’ own fleets, as well as the contractors’ fleets, will be fully converted to Neste MY Renewable Diesel™.
“At Neste, we are committed to helping our customers reduce their greenhouse gas emissions by at least 20 million tons annually by 2030 with our renewable energy and circular economy solutions. I am pleased that our long-term collaboration with Outokumpu will continue and that we can support the company in achieving its ambitious climate goals. The switch to renewable fuels at the Kemi mine and the Tornio steelworks is Neste’s most comprehensive collaboration with the mining and steel industry in Europe. With renewable fuels, Outokumpu can quickly reduce greenhouse gas emissions from its own operations and contractors by an average of 90%* compared to fossil fuels,” said Joni Pihlström, Vice President, Marketing & Services, B2B Sales at Neste.