The high-quality biocarbon production plant will annually produce 15,000 TPA of biocarbon using waste wood as raw material. 

Dec 31, 2024

Outokumpu, the global leader in sustainable stainless steel, has decided to invest EUR 40 million for building a high-quality biocarbon production plant in Germany with a production capacity of 15,000 TPA biocarbon using waste wood as raw material. 

The plant will be built in Sassnitz city of Mecklenburg-Vorpommern state in Northeastern Germany, utilizing existing infrastructure and buildings at the Mukran Port. The commissioning of the site is scheduled for the first half of 2026. 

It 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. Approximately 50 percent of Outokumpu’s direct emissions can be reduced by replacing fossil coke with biocoke. 

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.

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Outokumpu’s stainless steel has up to 75 percent lower carbon footprint than the global industry average. The company has established a roadmap to build up future supply for biocoke, which consists of a mixture of own production, external sourcing and partnerships. In addition to biocarbon, side stream gases will be used at the German plant to generate heat and electricity, offering a financially attractive business case and higher value use for the biomass.