Outokumpu Invests EUR 40 Million in Biocarbon Plant to Boost Sustainable Steel Production

Outokumpu's €40M biocarbon plant in Sassnitz aims to cut emissions and advance green stainless steel production. Image Credit : Outokumpu

Outokumpu, the global leader in sustainable stainless steel production, has announced a significant investment of EUR 40 million in a new biocarbon production plant in Sassnitz, Germany. This investment supports Outokumpu's climate goals, transitioning to sustainable materials and advancing emissions reduction and green energy initiatives.

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Building the Biocarbon Production Plant

The new plant, located in Sassnitz, Mecklenburg-Vorpommern, will utilize existing infrastructure at Mukran Port for production. The facility will have an annual production capacity of 15,000 tons of biocarbon, sourced from waste wood. Starting operations in 2026, the plant will supply biocoke feedstock for Outokumpu’s ferrochrome production in Tornio, Finland.

This move is crucial for cutting around 50% of Outokumpu’s direct emissions by substituting fossil coke with biocoke. With the EU potentially phasing out free carbon allowances, investing in sustainable alternatives becomes vital for future emissions reductions.

Supporting Outokumpu’s Sustainability Targets

Stefan Erdmann, Chief Technology Officer at Outokump said, "We are proud that our stainless steel has the lowest carbon footprint in the industry, and we are progressing steadily towards our target to reduce our emission intensity across our direct, indirect and supply chain emissions by 42% by 2030 from a 2016 base year."

He added, "Currently, biocoke represents the best available technology to decrease our direct emissions and we are investigating also other innovations as well as the use of carbon capture technology to achieve further reductions."

Outokumpu’s biocoke supply strategy integrates internal production, external sourcing, and strategic partnerships to secure a steady supply. Outokumpu's Mukran Port and Tornio pilot plants will optimize production and side stream gas usage, cutting emissions and costs.