Marlborough-based clean technology company Carbonscape has signed a contract with NZ Steel to supply "green coke".
New Zealand Steel will use it as an additive in its steel making operation at Glenbrook to reduce carbon emissions. A trial shipment is planned for next year.
CarbonScape has developed a microwave process for converting forestry waste into high-value carbon products, including metallurgical coke. Following successful trials, a scaled-up production plant is being built to deliver commission samples. The firm is now securing investment to enable commercial production.
Carbonscape chairman Nick Gerritsen, of Picton, said yesterday that the deal was potentially worth millions when it reached full commercial quantities.
NZ Steel president Simon Linge said the collaboration had been encouraged by BlueScope Steel in Australia, New Zealand Steel's parent company, which was studying options for the reduction of carbon dioxide using biomass.
NZ Steel and CarbonScape are also exploring other uses for its patented microwave technology in steel making, including high temperature plasma processing.
"NZ Steel is a company that was founded on innovation, and continuously looks for innovative ways to minimise any impact NZ Steel may have on the environment," he said.
This includes meeting about 60 per cent of its own energy needs via an onsite co-generation plant and support a pilot plant for Auckland based biofuel pioneer, LanzaTech, at its Glenbrook site.
- The Marlborough Express