Japan’s steelmaker Kobe Steel is advancing its decarbonization efforts by partnering with Mitsubishi UBE Cement Corporation (MUCC) to utilize torrefied wood pellets in steelmaking, with an aim to reduce the steel industry's carbon footprint.

Kobe Steel and MUCC, which has developed torrefied wood pellets called black pellets with high calorific value and coal-like properties, agreed in May to a feasibility study, targeting a joint venture for this project in 2026. MUCC currently produces 60,000 tons per year of these pellets at its Ube factory, co-firing them with coal in its thermal power plant since 2019.

Kobe Steel plans to use these torrefied wood pellets at its Kakogawa steelworks' blast furnace, primarily for heat.

The joint venture may plan to build overseas production factories in Southeast Asian and other countries to supply both Japan and other commercial clients with torrefied wood pellets.