Elkem sells Saguenay biocarbon business to CHAR Tech, securing five-year supply deal to support scalable industrial decarbonization efforts globally.
Elkem ASA has reached an agreement to divest its Canadian biocarbon operations located in Saguenay, Quebec, to CHAR Technologies Ltd. (CHAR Tech). The transaction includes not only the physical assets—such as the pilot and demonstration production facility—but also Elkem’s proprietary biocarbon technology developed at the site. Alongside the sale, both parties have entered into a long-term commercial arrangement under which CHAR Tech will supply Elkem with a total of 62,500 tonnes of biocarbon over a five-year period, ensuring continuity of supply for Elkem’s industrial needs.
The Saguenay facility, originally established in 2022, was designed as a pilot and demonstration plant. Its primary purpose was to develop and refine a specialized process for producing biocarbon pellets tailored for use in ferrosilicon manufacturing within electric arc furnaces. Over time, the facility successfully advanced from experimental production to generating sufficient volumes for industrial-scale testing. Notably, the biocarbon produced there was recently tested in Elkem’s nearby electric arc furnace at its Métaux plant, where it demonstrated effective performance, validating the process under real operating conditions.
Looking ahead, the facility is well-positioned for further development. Plans are in place to upgrade it to a commercial-scale operation capable of producing up to 15,000 tonnes of pelletized biocarbon annually. Once these enhancements are completed, the plant will shift toward processing raw biochar supplied by CHAR Tech into high-quality biocarbon pellets. These pellets are intended for use in heavy industries seeking to reduce carbon emissions, particularly in ferrosilicon production, where replacing fossil carbon sources with renewable alternatives is a key decarbonization strategy.
Biocarbon remains central to Elkem ASA’s broader environmental strategy. By securing a dependable supply through this five-year agreement, Elkem ensures that its Canadian and European smelting operations will have consistent access to renewable carbon inputs. This arrangement leverages CHAR Tech’s growing production capabilities, technological expertise, and commercial infrastructure, enabling scalable delivery aligned with industrial demand.
According to Charles Tremblay, plant manager at Elkem’s Chicoutimi operations in Canada, the company’s strategic focus is on utilizing advanced technologies and research-driven innovation to accelerate industrial decarbonization. He emphasized that transferring ownership of the Saguenay biocarbon facility to CHAR Tech represents a significant milestone. It allows Elkem to expand the reach of its proven biocarbon process while maintaining a stable and reliable supply chain for its global operations. Furthermore, the partnership reinforces Elkem’s commitment to producing silicon-based materials with a minimized carbon footprint, aligning with its environmental, social, and governance (ESG) objectives. Ultimately, this move is expected to create long-term sustainable value for both customers and shareholders while contributing to broader climate goals.
