Outokumpu announces investment in biocarbon plant in Germany

Outokumpu, a global stainless steel producer, has announced plans to invest €40 million in the construction of a biocarbon production plant in Sassnitz, Germany. The initiative aims to support the company’s efforts to reduce direct emissions and transition towards more sustainable industrial practices.

The facility, located in Mecklenburg-Vorpommern at the Mukran Port, is set to utilize waste wood as raw material for biocarbon production, with an annual capacity of 15,000 tonnes. The site is scheduled for commissioning in the first half of 2026 and will supply biocoke to Outokumpu’s pelletizing plant in Tornio, Finland. This biocoke will serve as a reductant in ferrochrome production, a key component of stainless steel manufacturing.

The investment forms part of Outokumpu’s broader sustainability strategy, which includes a €600 million capital expenditure plan between 2023 and 2025. The project leverages existing infrastructure at Mukran Port, chosen for its strategic location and strong logistical links to both Finland and Central Europe.

Reducing Emissions Through Biocoke Technology

Replacing fossil-based coke with biocoke could cut up to 50% of Outokumpu’s direct emissions, a significant step as the company aligns with potential regulatory changes, including the reduction of free carbon allowances under the European Emissions Trading System.

“Biocoke represents the best available technology to reduce direct emissions at this time,” stated Stefan Erdmann, Outokumpu’s Chief Technology Officer. “We are committed to reducing our emission intensity across direct, indirect, and supply chain emissions by 42% by 2030, compared to our 2016 baseline.”

The Mukran facility will also explore innovative uses for side stream gases, converting them into heat and electricity, thereby maximizing the efficiency and value of biomass utilization.

A Broader Vision for Biocoke Supply and Innovation

Outokumpu’s roadmap for biocoke supply includes internal production, partnerships, and external sourcing. With pilot plants in Germany and Finland, the company is actively refining production processes and investigating new technologies, including carbon capture.

“Biomass-based raw materials offer promising opportunities for emission reductions,” said Timo Huhtala, General Manager of Outokumpu EvoCarbon. “Our innovative approach ensures the technical readiness and financial feasibility of this investment while opening avenues for scaling up and future business opportunities.”

Source: Outokumpu, Photo: Fährhafen Sassnitz GmbH