Kobe Steel and Mitsubishi UBC Cement Corporation (MUCC) have partnered to explore the feasibility of producing black pellets—a cutting-edge raw material and fuel with the potential to drastically cut CO₂ emissions.
According to reports, Black pellets are made by thermally treating conventional wood pellets (known as white pellets), transforming them into a high-energy fuel with performance similar to coal. This innovation could significantly advance decarbonisation in power generation and steel production.
The collaboration combines MUCC’s patented black pellet production technology with Kobe Steel’s deep expertise in steel manufacturing processes. By combining their expertise, the two companies aim to pioneer sustainable solutions that could transform their industries.
The initial phase of the study will focus on deploying MUCC’s technology at Kobe Steel’s Kakogawa Works facility, targeting a formal joint venture launch by 2026. Looking beyond Japan, Kobe Steel is also evaluating international expansion opportunities, including overseas production plants, to meet growing global demand for sustainable black pellets as part of their commitment to reducing carbon footprints and meeting global climate targets.
The success of these projects will enable black pellets to become a key component in the transition towards cleaner steelmaking and power generation, away from traditional fossil fuels without compromising energy efficiency.