Japanese steel company Kobe Steel has announced the signing of a strategic agreement with Malaysian company Samling to jointly develop the production and sale of black pellets, a next-generation raw material designed to reduce carbon emissions from both steel and electricity production.
The move marks Kobe Steel's latest step in accelerating its role in the global green transition, positioning black pellets as a key decarbonization driver in heavy industry.
Details of the Kobe Steel-Sampling agreement
- Feasibility study: Kobe Steel and Samling will conduct a comprehensive feasibility study for new black pellet production facilities in Sarawak, Malaysia, to be completed by December 2025.
- Technologies and resources: The project will combine MUCC black pellet production technology with sustainable Samling wood resources in Sarawak.
- Production capacity: The initial target is at least 300,000 tons per year with the potential to expand to 1 million tons per year.
- Regional Center: Sarawak is expected to become a strategic black pellet supply center in Asia and beyond.
Timing and impact on the market
If the feasibility study is positive, construction of the first facilities could begin as early as 2026, creating a long-term supply chain for black pellets that currently does not exist on a global scale.
The initiative also follows Kobe Steel's previous collaboration with
