Japan: Kobe Steel, UBE Mitsubishi Cement explore joint venture to manufacture, sell black pellets

• Black pellets emerging as promising alternative to PCI
• Use in both steelmaking, power generation to be explored

Japan Metal Daily: Kobe Steel and UBE Mitsubishi Cement announced on 15 May that they have begun discussions on the establishment of a joint venture to manufacture and sell “black pellets” – that is, carbonised wood pellets made from biomass fuel.

In considering the joint venture, the two companies will explore the possibility of using UBE Mitsubishi’s black pellet manufacturing technology in the steelmaking process and in-house power generation facilities of Kobe Steel’s Kakogawa Works (Kakogawa City, Hyogo Prefecture).

Background – black pellets as alternative to PCI

Black pellets are a fuel made by carbonising wood pellets (white pellets) under certain conditions. CO2 emissions can be reduced by using unused wood, such as thinned wood, to replace coal.

In the steelmaking business, the use of black pellets will help reduce carbon dioxide (CO2) emissions from the blast furnace process and boost the production of green steel.

Notably, black pellets have emerged as a promising replacement for pulverised coal injection (PCI). PCI involves the injection of pulverised coal into a blast furnace to limit the use of expensive coke while increasing the reducing effect. Typically, PCI accounts for 15-30% of the coal used in blast furnace-route steelmaking.

Additionally, the use of metallurgical coke, which is used to reduce iron ore, faces challenges such as ensuring air permeability in the furnace, and the hurdles for practical application are quite high.

If some of the PCI is replaced with black pellets, the CO2 reduction effect is higher.

Way forward

The two companies aim to establish a joint venture in the future, but the timing of establishment and the scale of production have not yet been decided. As for the production of black pellets, the most likely proposal is to set up a base overseas.

Kobe Steel currently keeps its CO2 emissions in check by using reduced iron in blast furnaces. Based on its results, the company has introduced a green steel called “Kobenable Steel” in the market. If the use of black pellets is increased, Kobe will be able to expand the supply of green steel.

Kobe also envisions using black pellets as an alternative to coal in its own power generation facilities at steel mills. Besides establishing the technology to be used, the two companies will verify the economic feasibility of using black pellets and explore the development of related infrastructure.

UBE Mitsubishi Cement is one of the top companies in Japan in terms of black pellet manufacturing technology. It already manufactures 60,000 tonnes (t) a year in Japan.

Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.