Outokumpu invests in a biocarbon plant in Germany to reduce its direct emissions

Stainless steel maker Outokumpu is building a biocarbon plant in Sassnitz, Germany. The raw material produced there will be processed into biocoke in Tornio, Finland. The reducing agent made from renewable raw materials helps to reduce CO2 emissions in ferrochrome production.

According to Outokumpu, the global leader in sustainable stainless steel, is constantly looking for ways to further reduce climate impact throughout its value chain. Efforts to replace fossil raw materials with economically viable alternatives is a key element in this journey. The company has decided to invest EUR 40 million for building up a high quality biocarbon production plant in Germany. Approximately EUR 10 million of the capital expenditure is included in the CAPEX frame related to Outokumpu’s second strategy phase and the company remains committed to maintaining the maximum CAPEX frame of EUR 600 million between 2023–2025.
The plant will be built in the city of Sassnitz in the state of Mecklenburg-Vorpommern in Northeastern Germany, utilizing existing infrastructure and buildings at the Mukran Port. The planned annual production capacity is 15,000 tonnes of biocarbon(1 using waste wood as raw material. The commissioning of the site is scheduled for the first half of 2026. The new plant will provide feedstock material for biocoke to Outokumpu’s pelletizing plant in Tornio, Finland, which is on schedule and expected to be completed mid-2025. Biocoke is used as a reductant in Outokumpu’s ferrochrome production.

Biokoke could reduce 50 percent of direct emissions

Approximately 50% of Outokumpu’s direct emissions could be reduced by replacing fossil coke with biocoke. Investments towards cutting these emissions are essential to prepare Outokumpu to reduce future costs as the free carbon allowances in the European Emissions Trading System are potentially phased out in the future. Outokumpu's goal is to reduce emission intensity across the direct, indirect and supply chain emissions by 42% by 2030 from a 2016 base year. „Currently, biocoke represents the best available technology to decrease our direct emissions and we are investigating also other innovations as well as the use of carbon capture technology to achieve further reductions,” says Stefan Erdmann, Chief Technology Officer at Outokumpu.
According to Outokumpu, the company has established a roadmap to build up future supply for biocoke and it consists of a mixture of own production, external sourcing, and partnerships. With pilot plants in Mukran Port, Germany and Tornio, Finland, Outokumpu can further develop the production process, side stream gas utilization and end-product. In addition to biocarbon, side stream gases will be used at the plant in the Mukran Port to generate heat and electricity which offers a financially attractive business case and higher value use for the biomass.
Source: Qutokumpu