Arctic Sisu Corporation plans e-methane plant in Kotka

The new plant is planned to be built next to the Kotkamills pulp and paper mill. It will be the first project in Europe to use carbon dioxide from pulp production as a raw material for e-methane. The plant will recover up to half of the mill's current CO₂ emissions.

The pulp mill and the new e-methane plant will form a synergistic whole, making use of industrial side streams and waste heat. This will improve resource efficiency and further reduce Kotkamills' overall emissions.

The project is led by Arctic Sisu, a Finnish company, and MM Kotkamills Oy is actively involved in the design and development. Funding for the project is expected to come mainly from financial institutions.

Sustainable fuel for maritime transport

The project aims to replace fossil fuels in maritime transport. E-methane, produced from renewable electricity and biogenic carbon dioxide, is a cleaner alternative to oil-based fuels.

"The advantage of e-methane is its versatility: it can be blended with natural gas or diesel, fed into existing gas networks, liquefied and used in a variety of applications. It is a truly sustainable and flexible energy solution," says Jonne Pöyhtäri, Managing Director of Arctic Sisu.

At full capacity, the plant will produce 900-950 GWh of e-methane annually, making it one of the largest clean fuel production plants in Europe.

First phase will start in 2028

The project already has a customer base. A final investment decision is expected in 2026 and the first phase is expected to start in 2028.

The project will be implemented in three phases of around €300 million. The investment would strengthen Finland's position in the global green transition and serve as an example of industrial synergies and climate smart energy solutions.

This is the first e-fuel project to be announced by Arctic Sisu, with others currently in the conceptualisation phase.