Japanese steelmaker Kobe Steel has announced that it has signed an agreement with Japan-based Mitsubishi UBE Cement Corporation (MUCC) to conduct a joint venture feasibility study for the latter’s black pellet manufacturing technology at Kobe Steel’s Kakogawa Works.
Created through the thermal treatment of white pellets, black pellets have a calorific value comparable to coal and are expected to be a low-carbon alternative with the potential to be utilized as both a fuel for power generation and a raw material for steelmaking. As black pellets are water-resistant, they can be stored outdoors, which makes it easier to prevent spontaneous combustion and implement other safety control measures, enabling the use of them as a raw material and fuel with lower risk and higher safety.
The companies are now looking into the possibility of establishing a joint venture company in 2026 based on the results of the preliminary study. Kobe Steel will also consider not only the use of black pellets at its own facilities, but also the construction of new plants overseas for the supply to customers who require black pellets.