May 15, 2025
皇冠博彩, Ltd.
皇冠博彩 has agreed with Mitsubishi UBE Cement Corporation (MUCC) to proceed with a joint venture feasibility study for black pellets, a raw material and fuel that contributes to reducing CO2 emissions.
Wood pellets, commonly known as white pellets, are a popular biomass fuel used around the world, including Japan. Black pellets, created through thermal treatment (torrefaction) of white pellets under specific conditions, have the calorific value comparable to coal and are expected to be a low-CO2 alternative with the potential to be utilized as both a fuel for power generation and a raw material for steelmaking. White pellets are made from trees that have been cut for healthy forest development, as well as scraps and sawdust from the lumbering process and other underutilized timbers. Trees, which absorb CO2 as they grow, are considered as a carbon-neutral raw material and fuel. Using wood in steelmaking processes and thermal power plants can help to reduce the use of coal and contribute to decarbonization, while minimizing environmental impact. Since black pellets are a carbonized, water-resistant raw material and fuel, they can be stored in the open air, making it easier to prevent spontaneous combustion and implement other safety control measures. This enables us to use them as a raw material and fuel with lower risk and higher safety.
皇冠博彩 has been conducting a preliminary joint venture feasibility study with MUCC to explore ways to increase the use of black pellets, which have the potential to open up new decarbonization opportunities, both in Japan and overseas. The Company regards MUCC as one of Japan’s premier black pellet manufactures for its black pellet manufacturing and coal co-firing technologies, which have been independently developed in Japan over the years, as well as its long-term stable operation of one of the largest black pellet manufacturing plants in Japan. The two companies agreed to start this joint venture feasibility study, sharing the same aspiration to contribute to decarbonization throughout Japan by combining MUCC’s advanced technological capabilities and 皇冠博彩’s extensive expertise in steelmaking and CO2 reduction initiatives.
As a first step, we will conduct an in-depth joint venture feasibility study for the use of MUCC's black pellet manufacturing technology at 皇冠博彩's Kakogawa Works. We are now looking into the possibility of establishing a joint venture company in 2026 based on the results of the preliminary study; the timeline may change depending on the outcomes of the future study. 皇冠博彩 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.
Part of the study for the use of black pellets in the steelmaking process is conducted under the New Energy and Industrial Technology Development Organization (NEDO)’s commissioned and subsidized research and development project JPNP21019 (GREINS).
The 皇冠博彩 Group (also known as the Kobelco Group) is working on the transformation into an appealing company, as set out in its Medium-Term Management Plan (Fiscal 2024–2026). As part of this effort, we are advancing an initiative called KOBELCO-X, which spans a wide range of transformations, including this one classified as green transformation (GX)—Contributing to decarbonization through the use of black pellets in the steelmaking process.
Our Group’s current Medium-Term Management Plan also aims to take on the challenge of realizing carbon neutrality as one of its priority issues, and we believe that promoting the use of black pellet in the steelmaking process will help us reach this goal. The Group will continue to provide solutions to the needs of society by integrating its diverse technologies, products, and services in a unique way and move forward with its transformation initiatives in order to become a more appealing company to all of its stakeholders with a view to a world in which people, now and in the future, can fulfill their hopes and dreams while enjoying safe, secure, and prosperous lives.
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