New Green Horizons: Aperam and Ferbasa Join Forces to Strengthen Renewable Energy Production

Aperam, a renowned company in the stainless steel, special alloys, recycling, and bioenergy production sectors, has consolidated a joint venture with Ferbasa, one of the largest producers of ferroalloys in the world. The aim of the partnership is to increase the production of charcoal by expanding forest operations, continuing Aperam’s strategy of investing in sustainable business models.

Aperam Advances in Commitment to Energy Transition

The news of this forest expansion, announced in the second quarter of 2022, highlights Aperam’s commitment to the energy transition, targeting a 20% increase in its forest operations and the venture into new business models.

Aperam’s BioEnergia, located in the Jequitinhonha Valley in Minas Gerais, boasts an annual production capacity of 450,000 tons of charcoal. This capacity makes Aperam the world’s largest producer of charcoal sourced from renewable forests. With the relevant regulatory approvals, such as from the Administrative Council for Economic Defense in Brazil, the new company will work closely with Aperam’s existing operations, enabling the optimization of synergies and cost savings.

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Sustainable Opportunities: More Charcoal, Less CO2

The partnership also allows Aperam to intensify charcoal production, a renewable and sustainable energy source that already prevents the emission of 700,000 tons of CO2 per year. In addition, the expansion will provide BioEnergia the opportunity to develop new business models linked to renewable energy and global decarbonization.

The management of the additional space will follow Aperam’s responsible environmental standards, voluntarily certified by ISO 14001 and the Forest Stewardship Council® (FSC®) annually since 2008. The FSC® certification ensures that the products come from responsibly managed forests that provide environmental, social, and economic benefits.

Ultimately, Aperam takes pride in its forest operations as a way to contribute to the challenge of global climate change.

Discover more about Aperam’s sustainability strategy at the Capital Markets Day and in the Sustainability Report “Made for Life,” available at aperam.com.

About Aperam

Aperam is a global leader in stainless, electrical, and special steels, as well as recycling, serving customers in over 40 countries. As of January 1, 2022, the business is organized into four main segments: Stainless and Electrical Steel, Services and Solutions, Alloys and Specialties, and Recycling and Renewables.

The company is a leader in high-value special products and has a capacity for stainless and electrical flat steels of 2.5 million tons in Brazil and Europe. Furthermore, it has a highly integrated distribution, processing, and services network and the unique ability to produce low-carbon-footprint stainless and special steels from biomass, stainless steel scrap, and high-performance alloys scrap.

Thanks to BioEnergia and its unique capacity to produce charcoal from its own FSC® certified forest, along with its Recycling activities (expanded with the acquisition of ELG in 2021), a global leader in the collection, trading, processing, and recycling of stainless steel scrap and high-performance alloys, Aperam places sustainability at the core of its business. Aperam’s Brazilian operations reported a certified negative net balance of GHG (scope 1+2) in 2022. Last year, Aperam had sales of €8.156 billion and shipments of 2.31 million tons.