Engineering and design company AFRY has been commissioned by Arctic Sisu, a Finnish e-fuel company, to conduct a comprehensive feasibility study for a large-scale e-methane production facility in Kotka, Finland. The ambitious project represents a significant step toward sustainable fuel production in Europe, with plans to generate 900–950 GWh of renewable e-methane annually through a three-phase development approach.
The proposed facility will be strategically located adjacent to the existing Kotkamills Pulp & Paper mill, where it will capture and repurpose CO2 emissions from the pulp production process as raw material for e-methane manufacturing. This approach positions the project as Europe’s first facility to capture and reuse CO2 specifically from pulp production operations, demonstrating an innovative circular economy model.
The produced e-methane is intended to serve as a sustainable alternative to fossil fuels, particularly targeting the maritime sector where decarbonisation solutions are critically needed. This aligns with growing industry demands for cleaner fuel alternatives in shipping and transportation.
AFRY’s feasibility study is scheduled for completion by the end of 2025, providing Arctic Sisu with the detailed technical and economic analysis necessary for their investment decision, which is anticipated in 2026. The study will establish the conditions under which e-methane production at the Kotka site would be both feasible and economically optimal.
Should the project proceed following the investment decision, commercial production for the initial phase is targeted to commence in 2028, marking a significant milestone in Finland’s renewable energy landscape.
The feasibility study employs a top-down design approach, beginning with overall project objectives and plant goals before progressing to detailed engineering specifications and discipline-specific requirements. AFRY’s methodology incorporates the latest technical information from Original Equipment Manufacturers alongside the company’s proprietary data, ensuring evaluations are grounded in current market insights and technological capabilities.
Arctic Sisu CEO Jonne Pöyhtäri emphasised the value of AFRY’s expertise in similar plant developments and industrial projects. “The collaboration has started off well, and we’re eager to see how it progresses and what this phase delivers, along with the upcoming stages of both the project and sourcing,” Pöyhtäri stated.
Jukka Lehtonen, head of business unit for renewable and thermal energy at AFRY Finland, expressed enthusiasm about the partnership. “We are excited to partner with Arctic Sisu in this pioneering project to utilise CO₂ from pulp production as e-methane raw material and to support them in their journey to become a significant e-fuel producer,” Lehtonen said. He noted that AFRY looks forward to contributing insights across the entire power-to-x value chain to enable the transition to more sustainable maritime and transportation solutions.
The Kotka facility represents Arctic Sisu’s inaugural announced e-methane project and forms part of the company’s broader ambition to establish itself as one of Europe’s most significant e-fuel producers by 2030. The project demonstrates the potential for industrial symbiosis, where waste products from one industry become valuable inputs for another, creating more sustainable and economically viable production systems.
This collaboration between AFRY and Arctic Sisu reflects the growing momentum in the renewable energy sector, where innovative approaches to fuel production are becoming increasingly critical for meeting climate goals and supporting industrial decarbonisation efforts across Europe.
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