PaperAge

Metsä Group's Carbon Dioxide Capture Plant Receives EUR 21 Million in Aid

Metsa Group Rauma mill site Capturing biogenic carbon dioxide, such as carbon dioxide originating from wood, supports climate change mitigation by replacing fossil carbon. Pictured above: Metsä's Rauma pulp mill.

Sept. 10, 2026 (Press Release) - Metsä Group's planned wood-based carbon dioxide capture plant in Rauma has been awarded EUR 21 million in aid through the reverse auction organised by Finland's Ministry of Economic Affairs and Employment. In addition to supporting climate change mitigation, carbon dioxide capture would create new business opportunities.

"Receiving this aid is one of the key prerequisites for making the investment," said Maria Mroué, VP, Communications and Brand, Metsä Group. "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."

In the Ministry's reverse auction, aid was granted to projects requiring the lowest amount of support per unit of carbon dioxide capture capacity to be built.

In Metsä Group's project, carbon dioxide would be captured from the flue gases of the recovery boiler at the Rauma pulp mill.

Investment Decision No Earlier Than Early 2027

The final investment decision can be considered at the beginning of 2027 at the earliest. In addition to the aid, the investment decision is subject to obtaining an environmental permit, completing the engineering of the capture plant, and securing sufficient market demand. The aid will only be paid if the investment is carried out.

Capturing biogenic carbon dioxide, such as carbon dioxide originating from wood, supports climate change mitigation by replacing fossil carbon. The project would also create new business opportunities by turning an existing side stream into a new commercial product.

The planned carbon capture capacity in Rauma would be 100,000 tonnes of carbon dioxide per year. Metsä Group's customers would use the captured carbon dioxide in the production of e-fuels. Using 100,000 tonnes of wood-based carbon dioxide annually in a fuel value chain would avoid fossil carbon dioxide emissions equivalent to the annual emissions of nearly 30,000 passenger cars.

Metsä Group has its roots in the Finnish forest: its parent company Metsäliitto Cooperative is owned by approximately 90,000 forest owners. The Group focuses on pulp, paperboards, tissue and greaseproof papers, wood products, and wood supply and forest services. In 2025, Metsä Group's sales totaled EUR5.8 billion and about 8,800 employees.

SOURCE: Metsä Group