Outokumpu has announced a EUR 40 million investment to establish a biocarbon production plant in Sassnitz, Germany. Scheduled for commissioning in the first half of 2026, the plant will supply biocoke to Outokumpu’s pelletizing plant in Tornio, Finland. 

Dec 6, 2024

Outokumpu, a global leader in sustainable stainless steel, announced a EUR 40 million investment to establish a biocarbon production plant in Sassnitz, 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.

Utilizing existing infrastructure at Mukran Port, the facility will have an annual production capacity of 15,000 tons, using waste wood as raw material. Scheduled for commissioning in the first half of 2026, the plant will supply biocoke to Outokumpu’s pelletizing plant in Tornio, Finland, which is on schedule and expected to be completed mid-2025.

Biocoke, a low-emission reductant for ferrochrome production, could help Outokumpu cut direct emissions by up to 50%. This aligns with the company’s goal to reduce emissions intensity by 42% by 2030, compared to 2016 levels.

Also Read: India Plans to Supply LNG to Sri Lanka, Connecting Power Grids

Talking about the new plant, CTO Stefan Erdmann, said, ‘‘Biocoke represents the best available technology to reduce emissions. The project also includes plans for heat and electricity generation from side-stream gases, reinforcing Outokumpu’s commitment to innovative, sustainable practices.’’