Outokumpu, a global leader in sustainable stainless steel, is investing USD 42 mln to build a biocarbon production plant in Sassnitz, Germany, to further reduce its climate impact. This investment is part of the company’s strategy to replace fossil raw materials with sustainable alternatives. The plant will have an annual capacity of 15,000 tons of biocarbon made from waste wood, with commissioning set for mid-2026.
The biocarbon produced will supply feedstock for biocoke at Outokumpu’s pelletizing plant in Tornio, Finland, scheduled for completion by mid-2025.
Biocoke is a key reductant in Outokumpu’s ferrochrome production, which is vital for making stainless steel. Replacing fossil coke with biocoke could reduce around 50pct of the company’s direct emissions. The investment also supports Outokumpu’s broader strategy to reduce future costs as European carbon allowances phase out.
The company’s roadmap for biocoke supply includes a mix of own production, external sourcing, and partnerships. At the new plant, side stream gases will also be used to generate heat and electricity, making the project financially attractive while contributing to sustainability.
