Tokyo, 25 August (Argus) — Japanese steelmaker Kobe Steel (Kobelco) plans to produce torrefied wood pellets, also called black pellets, in Malaysia with a local firm, the company said on 25 August.
Kobelco signed an agreement with Malaysian forestry company Samling Strategic Corporation on 18 August to jointly conduct a business feasibility study on the project in Sarawak, Malaysia. The companies are expected to complete the study by the end of 2025 at the earliest. They aim to start constructing the first factory for black pellets in 2026.
This move underscores the rise in the use of torrefied biomass for the steel and metal industries as the non-power sector increasingly looks at options to cut its carbon footprint. The demand by steel and metal companies for torrefied biomass is expected to grow in Japan as well as globally, and could increase competition with the power sector for biomass supplies.
Samling will provide the feedstock for black pellets from the forests that the company owns in Sarawak, Malaysia. The companies aim to reach 300,000 t/yr of capacity as early as possible. They aim to reach a capacity of 1-2 mn t/yr in the future.
Kobelco will use the black pellets in steelmaking at its blast furnace to replace ground coal. The move is a part of the company’s de-fossilisation strategy, the Japanese company said. The company may also sell the fuel to other companies in the steel and metal industry, in addition to private power generation, it added.
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.
By Takeshi Maeda
