Metsä Group’s Rauma carbon capture project receives €21m aid

The funding supports plans to capture biogenic carbon dioxide from the recovery boiler at the Finnish pulp mill. A final investment decision could be made in early 2027.

The planned carbon dioxide capture plant would be located at Metsä Group’s Rauma pulp mill in south-western Finland (Image: Metsä Group)

Metsä Group’s carbon dioxide capture plant at its Rauma pulp mill in south-western Finland has been awarded €21m in aid through a reverse auction organised by Finland’s Ministry of Economic Affairs and Employment.

The project is intended to support climate change mitigation while creating new business opportunities by turning an existing side stream into a commercial product.

“Receiving this aid is one of the key prerequisites for making the investment. We are talking about building an entirely new industrial value chain, in a market that is only beginning to take shape. The positive decision means that we can continue planning the plant. We are very pleased with the ministry’s decision,” said Maria Mroué, vice-president of communications and brand at Metsä Group.

Under the ministry’s reverse auction, funding was awarded to projects requiring the lowest amount of support per unit of carbon dioxide capture capacity to be built.

At Rauma, carbon dioxide would be captured from the flue gases of the recovery boiler at the pulp mill.

Investment decision possible from early 2027

A final investment decision could be made in 2027, subject to obtaining an environmental permit, completing the engineering of the capture plant and securing sufficient market demand.

The aid would only be paid if the investment goes ahead.

The planned facility would have the capacity to capture 100,000 tonnes of carbon dioxide a year. The captured carbon dioxide would be used by Metsä Group’s customers in the production of e-fuels.

Capturing biogenic carbon dioxide, including carbon dioxide originating from wood, can help reduce reliance on fossil carbon in fuel production. Metsä Group estimates that using 100,000 tonnes of wood-based carbon dioxide annually in a fuel value chain could avoid fossil carbon dioxide emissions equivalent to the annual emissions of nearly 30,000 passenger cars.