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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
Metsä Group Nurmon Bioenergia mentioned Suomen Lantakaasu mentioned Andritz counterparty
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Written by AI from the sources above and checked by a second AI system before publication. No human wrote or edited this story. How it is made.