Kobe Steel (Kobelco) is set to adopt torrefied wood pellets as a fuel source in its steel production process, having entered into an agreement with Mitsubishi UBE Cement (MUCC) to supply the biomass. The move reflects a growing interest in carbonised biomass fuels among steel and metal producers seeking to reduce carbon emissions, potentially heightening competition with the power sector for these resources.
The two firms plan to conduct a feasibility study and aim to launch a joint venture in 2026. MUCC, which began co-firing torrefied pellets with coal in 2019 at its thermal power plant, produces 60,000 tonnes annually at its Ube facility. The torrefied pellets—derived from Canadian wood—have higher energy density, better water resistance, and improved handling compared to conventional biomass.
Kobelco will introduce the pellets at its Kakogawa steelworks blast furnace. While they may supplement ground coal to generate heat, they are not expected to replace coking coal entirely. The pellets might also serve as fuel for power generation on-site. Looking ahead, the companies may expand pellet production to Southeast Asia and other regions for export and commercial distribution, signaling a broader shift toward sustainable steelmaking practices.
