Japan’s Kobe Steel (Kobelco) plans to incorporate torrefied wood pellets, also known as black pellets, into its steelmaking process, partnering with Mitsubishi UBE Cement Corporation (MUCC) to source the biomass fuel. The two companies agreed in May to conduct a joint feasibility study and aim to establish a joint venture by 2026. Torrefied pellets are produced by thermally treating conventional wood pellets, resulting in a fuel with a calorific value comparable to coal, better water resistance, and easier handling.
Kobelco intends to use these pellets at its Kakogawa steelworks, potentially replacing ground coal for heat generation, though not as a major carbon source to substitute coking coal. The pellets could also be used for power generation at the plant. MUCC, a leading producer of black pellets in Japan, currently operates a plant with a 60,000-ton annual capacity and has been co-firing black pellets with coal since 2019.
The joint venture may expand production overseas, supplying pellets back to Japan and other customers. This initiative reflects growing efforts in the steel industry to reduce carbon emissions by adopting biomass fuels as a low-CO2 alternative to fossil fuels, supporting Kobe Steel’s decarbonization goals.
