Aperam to invest nearly R$1.5 billion in charcoal and low-carbon steel with IFC backing
Steelmaker Aperam will invest almost R$1.5 billion to expand charcoal production and decarbonization projects, funded through a package from the World Bank's IFC. The money will modernize charcoal furnaces, buy eucalyptus plantations and scale bio-oil output. It is the IFC's first sustainability investment in Brazil's steel and metals sector.
Aperam commits nearly R$1.5 billion to charcoal and low-carbon steel
Steelmaker Aperam will invest almost R$1.5 billion to strengthen charcoal production and decarbonization projects, funded through a financing package from the International Finance Corporation (IFC), part of the World Bank Group, according to O Tempo. Charcoal serves as the reducing agent in Aperam's Brazilian steelmaking, and the company says it has completely replaced mineral coal with charcoal from FSC-certified forests at its production facilities, cutting its carbon footprint.
The financing will reinforce the sustainable forest management program run by Aperam BioEnergia, which administers 150,000 hectares of forest. That total includes more than 60,000 hectares of natural vegetation preservation areas and wildlife corridors.
Where the money goes
Aperam says the investment will fund several linked projects across its forestry and charcoal operations:
- Acquisition of complementary eucalyptus plantations and modernization of charcoal furnaces with cleaner, more efficient technologies.
- Expansion of nursery capacity to supply high-quality seedlings to other forestry companies, plus development of improved tree varieties that deliver more biomass while consuming fewer resources such as water.
- Large-scale commercial production of bio-oil, recovered from residues of the charcoal process. The company says the product can replace synthetic fuels, lowering greenhouse-gas emissions and improving the circularity of its operations.
IFC's first steel-sector sustainability deal in Brazil
The IFC describes the transaction as its first investment supporting sustainability in the country's steel and metals sector. According to the institution, the project will create jobs, reduce carbon emissions and improve sustainable forest management practices. Olaf Schmidt, IFC regional director of Industry, said the financing will promote innovative solutions in the steel industry and reinforces the IFC's commitment to sustainable development and environmental stewardship.
Aperam executives framed the deal as central to their low-carbon strategy. Chief Executive Timoteo di Maulo said the partnership reinforces the company's commitment to leading low-carbon steel production, citing measures that range from raising the share of recycled materials in products to using its sustainably managed forests to capture carbon. Frederico Ayres Lima, CEO of Aperam South America, said investment in sustainable forestry and circular-economy practices strengthens the company's position in environmentally responsible steelmaking while contributing to Brazil's broader decarbonization goals.
Why it matters for trade
For buyers of Brazilian long and stainless products, the charcoal route is what distinguishes Aperam's carbon profile from coal-based mills. By anchoring its reducing agent in certified eucalyptus rather than imported coking coal, the company ties its steel emissions to managed plantations it controls. The move to commercial bio-oil adds a potential new product stream from process residues, aimed at markets that currently rely on synthetic fuels.
