To reduce its carbon footprint, stainless steel manufacturer Outokumpu has acquired a stake in major Swedish biochar producer Envigas AB. The company wants to use biomass-based raw materials for ferrochrome production as an alternative to fossil coal and thus reduce its CO2 emissions.
The switch from fossil raw materials to biomass-based alternatives is a key factor in reducing direct emissions at Outokumpu. Outokumpu has now signed an agreement to acquire a 20% stake in Envigas. By integrating its value chain, the supply chain for sustainable raw materials will be strengthened and CO₂ emissions from stainless steel and ferrochrome production will be reduced.
Greater production capacity
In Skellefteå, Sweden, Envigas wants to expand its production capacity by 25,000 t in the first expansion stage by the end of 2026, for which Outokumpu has pledged an investment of €9.9 million in the company. With the investment, Outokumpu secures a share in 50% of Envigas' production. Lars-Gunnar Almryd, CEO of Envigas, believes collaboration and clear purchase commitments are key to expanding biochar production. This would allow both sides to reduce risks and accelerate the reduction of emissions.
“Switching to new types of biomass-based raw materials is a concrete step forward to significantly reduce our direct emissions, which represent approximately 25% of Outokumpu's total emissions. We have successfully conducted production tests with biochar and biocoke and look forward to increasing their use in the future,” said Timo Huhtala, General Manager of Outokumpu’s biocoke initiative.
Supporting the circular economy
Outokumpu says its ferrochrome carbon footprint is 67% lower than the industry average. With the transition to the use of biomass-based reducing agents, a further reduction is being sought. Biochar is produced from the biomass of waste from the forestry industry. It can be used as such or further processed into biocoke and used as a replacement for fossil coke in ferrochrome smelting or for fossil coal in melting stainless steel.
“Decarbonizing our stainless steel requires efforts to reduce emissions across all areas. The use of biomass-based raw materials represents an exciting new chapter in our stainless steel production and supports the circular economy, as valuable, sustainably sourced side streams from the forestry and wood industry, which are currently burned for less efficient energy purposes, can be used to produce new types of raw materials for other industries," explains Huhtala.
Outokumpu is also working on a feasibility study for a possible future investment in its own biocoke production facility. By 2030, Outokumpo aims to reduce its CO₂ emissions by 42% compared to 2016, in line with the 1.5 degree climate target of the Science-Based Targets initiative. For example, the company wants to make a mine the first CO2-neutral mine and has entered into partnerships for green energy, for example with Fortum.
