Kuusakoski plans carbon-free scrap plant near Outokumpu mill

Finnish scrap processor Kuusakoski will invest €25 million ($27m) into a Veitsiluoto-based steel recycling plant that will operate 100% carbon free, it says. Commissioning is scheduled for 2025, Kallanish notes.

The investment is in response to growing demand for recycled metals in Finland and Sweden, and will increase the firm’s annual recycling capacity by 150,000 tonnes, or 25%. The new plant will have a port connection, effectively linking sea freight to rail and road transport. Of the investment cost, €2.8m will be financed by Business Finland from RRF (Recovery and Resilience Facility) funding.

The plant is expected to result in over 150,000 t/year of avoided CO2 emissions throughout the entire supply chain.

“In Veitsiluoto we are close to our largest end customers, and can offer superior, smart delivery models and competitive delivery times,” says Kuusakoski chief executive Mikko Kuusilehto. “We are seeing the steel industry beginning to move towards carbon-free production. Our new plant will bring with it carbon-free processing, which will enable our customers to further reduce their climate impact throughout the value chain.”

“Outokumpu is committed to ambitious climate goals and we already use mainly recycled steel in our production. Kuusakoski’s new steel recycling plant is being built in a logistically ideal location from the perspective of our Tornio steel mill. In addition to carbon-free operations and their proximity, the quality of materials and the traceability of the entire supply chain are key to us as a responsible operator,” says Juha Erkkilä, vice president, group sustainability at Outokumpu, one of Kuusakoski’s main customers.

The new plant will produce significantly higher levels of purity in its recycled raw materials and it will have improved separation capabilities, the scrap merchant says. This is possible because of new technology used in the pre-treatment and analysis of the material. There is no similar setup being used anywhere else, it adds.

Kuusakoski has set a target of carbon-free operations by 2035.

Adam Smith Poland