Outokumpu cancels biocarbon plant project in Mukran

Finnish stainless steel producer Outokumpu has canceled plans to establish a biocarbon production facility in Mukran, located on the island of Rügen, Germany. The project, which involved an investment of approximately 40 million euros, was intended to produce biocarbon via pyrolysis to reduce the carbon footprint of stainless steel manufacturing.

The company cited economic unviability as the primary reason for the withdrawal. Specifically, Outokumpu determined that the local region could not absorb the excess waste heat generated during the production process in sufficient quantities. The sale of this waste heat was a critical component of the project's financial model, intended to fund the procurement of waste wood.

Under the original plan, the facility would have occupied the former concrete coating plant used for the Nord Stream 2 pipeline. The produced biocarbon was to be shipped to Tornio, Finland, to be processed into pellets to replace fossil coke in ferrochrome production. Outokumpu and the ferry port operator, Sassnitz GmbH, have mutually terminated their lease agreement.