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ABOUT

Bio Sponge Iron is an innovative initiative focused on developing a sustainable and low-carbon route for sponge iron production by replacing fossil-based resources with renewable biological alternatives. The project brings together leading industrial partners, research organizations, and technology experts to accelerate the decarbonization of the steel sector while ensuring technical, economic, and environmental feasibility.

By integrating advanced process technologies, biomass valorisation strategies, and circular economy principles, Bio Sponge Iron aims to significantly reduce greenhouse gas emissions, improve resource efficiency, and contribute to the transition towards climate-neutral steel production. The project will generate scalable solutions that support the competitiveness and sustainability of the European steel industry, aligning with the objectives of the European Green Deal and the transition to a circular and resilient economy.

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Advancing Sustainable Smelting with Biochar

Recent scientific and industrial developments have highlighted several areas where further innovation is required to accelerate the adoption of biochar in metallurgical processes.

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Enhancing Biochar Performance

Improving the physical and chemical properties of biochar remains a critical challenge for its effective use in smelting furnaces. Research efforts are focused on increasing density, mechanical strength, and reactivity, while optimizing agglomeration techniques, injection systems, and blending strategies to enhance slag foaming and process efficiency. In addition, tailored biocarbon engineering approaches, including the control of volatile matter content and other key characteristics, are being investigated to maximize metallurgical performance.

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Integrating Renewable Energy

The combination of biochar with renewable energy sources offers further opportunities to reduce the carbon footprint of smelting operations. Innovative solutions such as solar-powered pyrolysis for biochar production and the increasing electrification of smelting processes can significantly contribute to COâ‚‚ emissions reduction, supporting the decarbonization of the steel value chain.

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Supporting Carbon Capture and Storage Strategies

Beyond replacing fossil carbon, biochar can contribute to climate change mitigation by acting as a carbon sink. Through its ability to capture and store carbon, biochar may play a complementary role within future Carbon Capture, Utilization and Storage (CCUS) strategies, further enhancing the environmental benefits of low-carbon steel production.

Bio Sponge Iron Project Roadmap

The Bio Sponge Iron project will lay the foundation for a sustainable sponge iron value chain in Europe by first assessing market demand and defining the quality requirements of sponge iron for electric arc furnace (EAF)-based steel production. At the same time, the project will evaluate biochar as a renewable reducing agent, examining its availability, quality, and geographical distribution across Europe.

Advanced simulations and dedicated mathematical models will support the design and optimization of a TRL6 pilot plant, paving the way for the construction and operation of a TRL7 demonstration prototype. Experimental campaigns will test a wide range of biochars derived from different feedstocks, featuring fixed carbon contents between 30% and 60%, alongside various iron oxide sources.​

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Following construction by AGRI, the demonstration plant will be installed at the Minas de Alquife site, where extensive long-term trials will be carried out using iron ore fines. In parallel, BSN will supply rolling mill scale to enable sponge iron production from steel industry by-products, either alone or blended with iron ore, further strengthening circularity within the steel value chain.

Designed to produce up to 7,500 tonnes of sponge iron per year, the plant will serve as the core demonstration facility of the project. Data gathered during operation will be used to validate numerical models, optimize process parameters, and identify the best balance between iron reduction efficiency and energy consumption.

To support market uptake, POLIMI will evaluate the performance of the produced sponge iron in electric arc furnaces, assessing its potential as a partial replacement for scrap steel. Beyond the project lifetime, Bio Sponge Iron and its partners, with support from SteelMont, will work towards commercial deployment through market analysis, business planning, and comprehensive environmental and economic assessments, ensuring a clear pathway toward industrial implementation and decarbonized steel production.

Project Concepts

1

A big step towards balance of scrap shortage, reduction of iron ores, recycling of oxide scales and zero emission using biochar coming from organic residues.

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2

Recover and reuse heat developed by gas formed during reduction of iron oxides

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3

Application of a horizontal smelting furnace

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5

Use detailed analysing techniques to enhance the significance of experimental results

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4

Transportable solution of the equipment

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The work is organized in nine work packages: one is concerned with the overall project management (WP1), six work packages (WP2 to WP7) are related to research and development activities:

  • selecting and characterizing biomasses sources for biochar production and following biochar characterization (WP2).

  • detailed design of a TRL6 prototype (WP3) will be supported by comprehensive simulations, utilizing mathematical, numerical, and thermodynamical models.

  • constructing and validating the TRL6 prototype (WP5).

  • design the most suitable system for heat recovery from furnace off gas to improve process efficiency (WP6)

  • feasibility study of application of the process of sponge iron production in two typical use cases: steel factory and iron ore mine (WP7).

  • outcomes and economic aspects related to industrial implementation (LCA, business plan…) (WP8),

Finally, as a project backbone, WP9 involves all communication, dissemination and exploitation activities.

Project Coordinated by RINA Consulting - Centro Sviluppo Materiali SpA

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Start date: 1st May 2026

End date: 31st October 2029

Topic: RFCS-2025-CSP

Total Eligible costs: 4.976.433,96 €

Max. EU grant contribution: 2.488.216,00€

This project has received funding from the European Union’s RFCS programme under Grant Agreement n°101254460

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