Kobe Steel and Mitsubishi UBE Cement Corporation (MUCC) are launching a joint venture feasibility study for black pellets, a CO2-reducing raw material and fuel. Black pellets, thermally treated wood pellets (white pellets), offer coal-comparable calorific value and open new decarbonization pathways for power generation and steelmaking.

The collaboration uses MUCC's black pellet manufacturing technology and Kobe Steel's steelmaking expertise.

Initially, the study will focus on using MUCC's technology at Kobe Steel's Kakogawa Works, with a possible joint venture established by 2026. Kobe Steel also plans to explore overseas plant construction to supply black pellets to other customers.