Metsä Group wins EUR 21m state aid for Rauma carbon capture project
Metsä Group has secured EUR 21m in Finnish public funding for a planned wood-based carbon dioxide capture plant at Metsä Fibre's Rauma pulp mill. The facility would capture around 100,000 tonnes of biogenic CO2 a year from the mill's recovery boiler for use as a raw material in e-fuels. A final investment decision is not expected before early 2027, subject to permitting, engineering and market demand.
Why this mattersState-backed carbon capture at a pulp mill could open a new revenue stream from biogenic CO2 and set a template for decarbonising the forest industry's flue gas emissions.
- Metsä Group awarded EUR 21m via a reverse auction run by Finland's Ministry of Economic Affairs and Employment
- Planned plant at Metsä Fibre's Rauma pulp mill would capture about 100,000 tonnes of wood-based CO2 per year
- Aid is paid only if the investment proceeds, with final investment decision not expected before early 2027
- Pilot testing was carried out at Rauma in 2025 with technology supplier Andritz; pre-engineering began in 2026
- Captured CO2 is intended for use as a raw material in e-fuel production, potentially avoiding emissions equivalent to nearly 30,000 passenger cars annually
- Project remains conditional on environmental permit, completed engineering and sufficient market demand