Historic Partnership for Green Transition

In a significant move toward industrial decarbonization, stainless steel giant Outokumpu and LNG infrastructure developer Deutsche ReGas have announced a pioneering partnership. The two companies have signed a memorandum of understanding to jointly utilize and exchange process heat and green electricity at the Mukran Port in Germany. This initiative aims to reduce reliance on fossil fuels by integrating renewable side-streams into their respective operations.

Outokumpu’s Bio-Carbon Breakthrough

Outokumpu, a global leader in sustainable stainless steel production, is establishing a new EvoCarbon facility in Mukran Port. The factory will convert waste wood biomass into biocarbon, with a projected annual capacity of 15,000 metric tons. This biocarbon will be transported to Tornio, Finland, to feed Outokumpu’s upcoming biocoke pellet plant. The Mukran facility is scheduled to begin operations in summer 2026, marking a transformative step in industrial raw material sourcing.

Energy Terminal Transformation

Deutsche ReGas, known for operating the "Deutsche Ostsee" LNG terminal, plans to tap into the process heat generated from Outokumpu’s biocarbon production. This heat will be repurposed to meet a substantial portion of the energy terminal’s power demands. As Ingo Wagner, CEO of Deutsche ReGas, explained, “The process heat allows us to cover a major part of our energy requirements, demonstrating our commitment to decarbonization and cost efficiency.”

Reinforcing Regional Infrastructure

The collaboration enhances the industrial value chain and supports the strategic development of Mukran Port as an energy innovation hub. The port’s infrastructure offers an ideal setting for this synergistic industrial integration. Henry Forster, Managing Director of Fährhafen Sassnitz GmbH, highlighted that “the project underscores the strategic vision for Mukran and confirms its capability as a future-ready port.”

Circular Energy & Value Creation

Besides biocarbon production, the facility will also generate green electricity and heat as by-products. These energy flows will not only power the operations of Deutsche ReGas but may also support the surrounding Sassnitz community. This integrated reuse of energy strengthens Outokumpu’s position in Mecklenburg-Vorpommern and deepens the local value chain.

Cutting Direct Emissions

According to Stefan Erdmann, CTO of Outokumpu Group, replacing fossil coke with biocoke is the most effective method currently available to reduce direct CO₂ emissions in stainless steel manufacturing. He remarked, “This partnership elevates the economic efficiency of our biocarbon plant. We are delighted with our decision to settle in Mukran, where auxiliary streams find real utilization.”

Logistics & Port Advantage

The Mukran Port, situated on Rügen Island in the Baltic Sea, presents robust logistical advantages for Outokumpu’s export operations. With direct shipping lines to Tornio, Finland, the facility ensures seamless integration between German and Finnish manufacturing nodes. The port’s multimodal capacity was a decisive factor in Outokumpu’s site selection.

Future Outlook & Regional Synergies

As the bio-carbon plant nears completion, more industrial players are expected to benefit from shared energy flows and sustainability-focused infrastructure. The initiative reflects a broader trend across Europe: leveraging industrial co-location and circular energy systems to accelerate the green transition. It also positions the Mukran Port as a lighthouse model for climate-smart industry clusters.

Key Takeaways

• Outokumpu will produce 15,000 metric tons of biocarbon annually at its new EvoCarbon plant in Mukran by 2026.

• Deutsche ReGas will use process heat from Outokumpu's facility to power its LNG terminal, reducing reliance on fossil fuels.

• The partnership enhances Mukran Port’s role as a strategic green energy hub, offering circular economy solutions and shared energy infrastructure.