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How black pellets could help make greener steel

23/06/2025 by Mark

Kobe Steel and Mitsubishi UBE Cement Corporation (MUCC) have announced a joint feasibility study into the use of black pellets to reduce carbon emissions in steelmaking and other industries.

Many warehouse equipment manufacturers that use steel to make items like trolleys, shelving, packing tables are interested in using greener steel that has less of an environmental impact. There are several ways to reduce steelmaking’s carbon emissions, including electric arc furnaces powered by renewable energy and using more recycled steel.

Black pellets are manufactured by applying thermal treatment to standard wood pellets. When black pellets are burnt, they have a similar energy output to coal traditionally used in steelmaking furnaces, but with fewer carbon emissions.

The feasibility study will first test the use of black pellets at Kobe Steel’s Kakogawa Works in Japan. The study will also look at how black pellets can be used in a range of other industries that want an alternative to fossil fuels and reduce carbon emissions without compromising energy efficiency. Mitsubishi UBE Cement Corporation could use black pellets in their cement production process.

The collaboration between the two companies is an example of a growing trend for leading companies from different industries to combine resources that are invested in researching strategies for reducing carbon footprints. If the study concludes that black pellets are a viable alternative to coal, it is expected that a formal joint venture will be established by 2026 between Kobe Steel and the Mitsubishi UBE Cement Corporation to expand the use of back pellets in a broad range of applications.

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