Outokumpu acquires a stake in Envigas

The Finnish steel company Outokumpu becomes a partner in the Skellefteå-based biochar producer Envigas.

With Outokumpu as co-owner with 20 percent of the shares, half of Envigas' production of a total of 5,000 tons of biochar per year in the factory in Bureå in Skellefteå municipality is secured.

In addition, the new partner will invest EUR 9.9 million in Envigas to enable a fivefold increase in production by the end of 2026.

"The transition to using new types of renewable raw materials is a concrete step forward to significantly reduce our direct emissions, which account for 25% of Outokumpu's total emissions. We have successfully completed production tests with biochar and bio-coke," says Timo Huhtala, General Manager responsible for Outokumpu's bio-coke initiative.

The chairman is Per-Olof Wedin, who also sits on the board of LKAB.

Biochar is based on residual products from forestry and is one of the products that is needed to make the steel industry completely fossil-free.

Lennart Håkansson