Green Fusion: Outokumpu's Biomass Leap

EnvigasImage Source: Outokumpu


Outokumpu takes a significant step towards sustainability by acquiring a 20% share in Envigas AB, a leading biocarbon producer. This move aligns with Outokumpu's commitment to reducing direct emissions, constituting 25% of total emissions. The partnership aims to replace fossil raw materials with biomass-based alternatives, marking a crucial stride in the company's goal to cut carbon emissions by 42% by 2030. Envigas, focusing on steel industry solutions, offers a pathway to a greener future.


Outokumpu, a frontrunner in sustainable stainless steel production, is forging a greener path with the acquisition of a 20% stake in Envigas AB, a prominent biocarbon producer based in Sweden. As part of Outokumpu's strategy to decarbonize its industry, the focus is shifting from fossil to biomass-based raw materials. This strategic move addresses approximately 25% of Outokumpu's total emissions, contributing significantly to its ambitious emission reduction targets.

Ferrochrome production, a vital aspect of Outokumpu's operations in Tornio, Finland, already boasts a 67% smaller carbon footprint than the industry average. With plans to transition to biomass-based reductants like biocoke, Outokumpu aims for further emission reduction. Timo Huhtala, General Manager overseeing Outokumpu’s biocoke initiative, emphasizes the pivotal role of new biomass-based raw materials in curbing direct emissions.

Envigas AB, with its production plant in Sweden, stands out as a major European producer of high-quality biocarbon, specifically tailored for the steel industry. The collaboration involves Outokumpu investing EUR 9.9 million into Envigas, securing a 50% right to its production. This strategic partnership aligns with both companies' growth agendas and contributes to accelerating the shift towards zero emissions in the steel industry.

Outokumpu's climate target, approved by the Science-Based Targets initiative, commits to a 42% reduction in carbon dioxide emissions by 2030. Utilizing biomass-based raw materials presents a promising avenue for Outokumpu, not only reducing emissions but also promoting circular economy practices by repurposing forest and wood industry side streams.

Timo Huhtala underscores the importance of this move, stating that biomass-based raw materials open a new chapter in stainless steel production. Simultaneously, Outokumpu is exploring the possibility of investing in its biocoke production facility, showcasing a comprehensive approach to sustainability.


Outokumpu's partnership with Envigas heralds a significant stride towards sustainability, emphasizing a shift from fossil to biomass-based raw materials. This strategic move, addressing a quarter of Outokumpu's emissions, aligns with the company's commitment to a 42% carbon reduction by 2030. Envigas' expertise in high-quality biocarbon positions both companies to accelerate the journey towards zero emissions in the steel industry. This collaboration not only reduces environmental risks but also propels Outokumpu's trajectory towards a greener, circular economy.

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