Steel supplier Outokumpu invests €40m at Mukran Port

(Posted on 11/12/24)

Mukran Port on the island of Rügen, Germany, has gained a strategically important partner for the further development of the site in Outokumpu, the world's leading supplier of sustainable stainless steel. The Finnish company will build an innovative plant for the production of biocarbon at Mukran Port in the coming years. With an investment of around 40 million euros and the creation of up to 25 qualified, permanent jobs, Outokumpu is underlining the importance of the port for future-oriented technologies and sustainable production.

The use of bio-based raw materials is a sustainable way for Outokumpu to reduce direct emissions in the steel production process. In the new plant, biocarbon is produced from secondary wood raw materials using an innovative high-temperature process. The fine granulate obtained in this way, which looks like “black sand”, is then shipped via Mukran Port to Tornio in Finland for further processing into biocoke pellets. The biocarbon produced at Mukran in the future can be used to replace conventional coal or fossil energy sources in various stages of stainless steel production. With this technology, Outokumpu is setting a milestone towards more climate-friendly steel production, as around 50 percent of Outokumpu's direct emissions could be reduced through the use of biocoke.

Fridjof Ostenberg, Managing Director of Mukran Port, emphasizes the strategic importance of the move: “Outokumpu's decision in favour of Mukran is the result of an intensive process. It shows how attractive our port is for companies that rely on multimodal transport chains. The planned delivery of raw materials by rail and shipment of the end product by ship will strengthen the site's logistics diversity. With Outokumpu, we are not only gaining a world-leading company in its sector, but also increasing the attractiveness for other potential industrial customers and supporting the transformation of the location with regard to new energy sources.”

Stefan Erdmann, Chief Technology Officer at Outokumpu, also emphasizes the advantages of the location: “Mukran Port convinced us with its combination of existing industrial space, modern infrastructure and excellent hinterland connections. The short sea routes to Finland also enable efficient and more environmentally friendly logistics. We look forward to further developing this location together.”

The plant is not only technologically innovative, but also contributes to the regional energy transition. The by-products from the production process, in particular the waste heat generated, will be fed into the district heating network on the island of Rügen.

Sassnitz's mayor, Leon Kräusche, welcomes this sustainable use: “By feeding waste heat into the district heating network, we are not only making a contribution to ecological energy supply, but also expect stable energy prices for the citizens of Sassnitz.”

With this settlement, Mukran Port confirms its status as a key location for innovative and sustainable projects. Outokumpu is an example of how industry and the environment can be brought into harmony - a strong signal for the economic future of the region.