Efforts to decarbonise the European steel sector have taken a major step forward with the development of biocoal from biowaste. This emerging solution directly aligns with the ambitions of the EU Green Deal and the circular economy. New technologies and initiatives in countries such as Belgium and Finland show that this sustainable fuel can not only deliver climate benefits, but is also economically viable.
Biocoal as an alternative to fossil coal
The steel industry is one of the largest industrial emitters of greenhouse gases in Europe. Traditional blast furnaces use coal as both an energy source and a reducing agent to convert iron ore into pig iron. By replacing part of this fossil fuel with biocoal, a carbon-rich material created through the pyrolysis of biowaste, steel producers can significantly reduce their emissions. And that without having to invest in completely new installations.
Biocoal based on waste flows, such as agricultural residues, sludge or wood waste, also offers a double environmental benefit: it prevents waste from being dumped or incinerated, and at the same time produces a climate-friendly fuel.
From waste to high-quality fuel
The use of biocoal from residual flows imposes technical requirements. Biowaste often contains undesirable elements such as sulphur, phosphorus or heavy metals, which can affect the quality of steel. The European H2STEEL project is therefore researching ways to purify biocoal and make it suitable for industrial processes. Researchers are testing pretreatment techniques, chemical modifications and methods to recover useful substances such as phosphorus for reuse in agriculture.
These innovations make biocoal increasingly attractive for applications in heavy industries such as steel and cement production.
European examples: pioneers in Belgium and Finland
In Finland, Taaleri Bioindustry recently put Europe's largest biocoal plant into operation. The facility produces up to 60.000 tonnes of biocoal per year, mainly from woody waste streams. The plant is specifically designed for applications in industrial chains, such as the steel and cement sectors, and demonstrates that large-scale production is feasible.
Biocoal is also being used in Belgium. Steel giant ArcelorMittal has opened a factory in Ghent that converts waste wood into biocoal for use in their blast furnaces. According to the company, this project will save more than 112.000 tons of CO₂ emissions per year. The application fits in with their broader strategy to become climate neutral by 2050.
Policy and practice are aligned
Biocoal is increasingly featured in European sustainability and energy policies. The European Commission sees biowaste as a valuable resource for the circular economy. Under the Renewable Energy Directives (RED II and III), solid biogenic fuels, such as biocoal, can be certified as sustainable, provided that the right conditions are met.
The combination of residual flow use, emission reduction and value creation makes biocoal an attractive solution for both policy makers and companies.
Intermediate step to hydrogen?
Although green hydrogen seems to be the future for emission-free steel production, the infrastructure for this is still under construction. Biocoal already offers a realistic solution that can be used in existing factories. This makes it an important link in the transition phase to a carbon-free industry.
Sources: Bioenergy news, Taaleri Bioindustry, ArcelorMittal









