Japan's Kobelco to use torrefied biomass in steelmaking

Market: Biomass, Metals
10/06/25

Japan's Kobe Steel (Kobelco) plans to use torrefied wood pellets in steelmaking and has entered into an agreement with Mitsubishi UBE Cement (MUCC) to source the biomass fuel.

This move underscores the rise in usage of torrefied or carbonised biomass for the steel and metal industries as the non-power sector is increasingly looking at options to cut its carbon footprint. The demand for torrefied or carbonised biomass by steel and metal companies is expected to grow in Japan as well as globally, and could increase competition with the power sector for biomass supplies.

Kobe and MUCC agreed in May to conduct a feasibility study on torrefied wood pellets and aim to set up a joint venture for this project in 2026, the companies told Argus.

MUCC has developed torrefaction technology to produce torrefied wood pellets, which are also called black pellets. Torrefied wood pellets have a higher calorific value than normal biomass fuels including typical wood pellets. They have better water resistance and grindability compared with typical wood pellets. They also share key characteristics with coal and can be handled like coal.

MUCC has a production capacity of 60,000 t/yr in its Ube factory. MUCC's black pellets have been co-fired with coal in its thermal power plant since 2019. Normal wood pellets imported from Canada are used as feedstock to produce the torrefied wood pellets.

Kobelco plans to use MUCC's torrefied wood pellets in steelmaking at its blast furnace in the Kakogawa steelworks, but the company did not elaborate further. The black pellets could be used instead of ground coal at the plant to provide heat, but may not be utilised as a major carbon source to replace coking coal as a reducing agent. The torrefied wood pellets could also be burned for power generation at the steel mill.

The joint venture between Kobelco and MUCC may build factories to produce torrefied wood pellets in southeast Asian and other countries in the future. The pellets could be sourced back to Japan, and also sold commercially to other companies.

By Takeshi Maeda

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