Outokumpu, a leading global producer of sustainable stainless steel, has unveiled plans for a €40 million investment in a new bio-carbon plant in Sassnitz, Germany. This initiative is part of the company’s broader strategy to reduce its carbon emissions and integrate sustainable technologies into its steel production processes.

The new plant will have an annual capacity of 15,000 tons of biochar, which will be produced from wood waste. The facility is expected to begin operations in the first half of 2026. The biochar produced will be used as a raw material for biocoke, which will play a key role in ferrochrome production at Outokumpu’s Tornio plant in Finland, set to begin operations in 2025.

Reducing Emissions with Biocoke

Outokumpu aims to significantly reduce its direct emissions through the use of biocoke, which could cut emissions by up to 50%. This reduction is especially important as the European Emissions Trading System (ETS) gradually tightens its allowances for free emissions, making such initiatives critical for the company’s long-term sustainability.

Stefan Erdmann, Chief Technology Officer at Outokumpu, stated, “We are proud that our stainless steel has the lowest carbon footprint in the industry – up to 75% lower than the global average. Investments in bio-carbon and other innovative technologies are crucial steps towards achieving our target of reducing emissions by 42% by 2030.”

By-Product Gas Utilization for Energy Generation

In addition to producing biocoke, the new Sassnitz plant will also capture by-product gases to generate heat and electricity, adding an extra layer of sustainability to the project and enhancing its financial viability. The company continues to explore additional carbon-reducing technologies, including carbon capture, utilization, and storage (CCUS), and is actively seeking partners to expand these environmental initiatives.

Growth in Stainless Steel Production

In other industry news, global stainless steel production for the first half of 2024 saw a 6.3% increase compared to the same period in 2023, reaching 30.37 million tons. In Europe, stainless steel production rose by 0.3% year-on-year to 3.14 million tons, while the United States saw a more significant growth of 9%, producing 1.03 million tons during the same period.

With its bio-carbon plant and ongoing investments in innovative technologies, Outokumpu is positioning itself as a leader in sustainable steel production, paving the way for a greener future in the industry.