Salzgitter and Binding Solutions Partnering for Cold Agglomerated Pellet Technology

28.07.2025 | Salzgitter AG


  • Salzgitter and Binding Solutions will conduct trials of Cold Agglomerated Pellets in Salzgitter’s Blast Furnace and Direct Reduction Plant
  • The technology significantly reduces energy demand and CO2 emissions

The Salzgitter Group (“Salzgitter”) and Binding Solutions Ltd (“BSL”) have entered into an MOU to undertake trials of BSL’s cold agglomerated pellets (“CAPs”) for blast furnace (“BF”) and direct reduction applications (“DR”). The process technology of BSL could, if the trials have positive results, complement Salzgitter’s on site ore processing within the SALCOS®-Salzgitter Low CO2 Steelmaking programme.

The tests will be conducted on multiple ore types at a number of Salzgitter’s production facilities, including DR testing at the 2500 kg/d μDRAL innovation project, the world's first DR plant flexibly operated with hydrogen and natural gas in an integrated steel mill. Blast furnace tests will be carried out at other Salzgitter Group facilities.

The goal of the trials is to demonstrate the value of BSL’s CAPs in blast furnaces and prove the benefits of BSL’s DR CAP technology through a world recognised test facility.

The CAPs will be produced from various ore types at BSL’s world leading Technology Centre on Teesside, UK before being shipped to Germany.

BSL’s patented and proprietary CAPs can be used to replace standard induration and sinter materials in blast furnaces and DR plants. In comparison to traditional induration and sinter processes, BSL’s CAPs cut energy usage and CO2 emissions by up to 80% and 70% respectively, while also delivering substantial economic and operational benefits.

Salzgitter’s Timo Naleschinski, Head of Purchasing Raw Materials, said:
“Through our SALCOS® program we are working with leading technical and research partners to achieve our mission of producing virtually climate-neutral steel. BSL’s innovative technology has the potential to ensure a secure and diverse supply of high quality, low carbon iron ore pellets for our steel production process helping us to achieve our ambitious climate goals.”

Jon Stewart, CEO of Binding Solutions Ltd, said:
“The trials with Salzgitter are a significant opportunity for us to rapidly advance the development of our DR CAPs with one of Europe’s largest steel producers, recognised globally for their technical capabilities. Partnering with Salzgitter will enable us to benefit from their significant expertise and access to their unique μDRAL plant, allowing us to rapidly increase the technology readiness level of our DR CAPs. We believe that our CAP technology has the potential to deliver a stable, long-term supply of high-quality low-emissions pellets for the European green steel industry.”

Contact Salzgitter AG:

Thorsten Moellmann
Head of Communication & Brand
Phone: +49 5341 21-2300
moellmann.t@salzgitter-ag.de

Olaf Reinecke
Press Spokesperson
Phone: +49 (0) 5341 21-5350
reinecke.o@salzgitter-ag.de

Contact Binding Solutions:

Andy Mills
Phone: +44 207 321 0000
bindingsolutions@aura-financial.com


About Binding Solutions

Binding Solutions is a fast-growing technology company that has developed a patented process for significantly reducing carbon emissions from steel production. Our cold agglomerated pellets (CAPs) enable reductions of up to 80% in energy usage and 70% in CO2 emissions by replacing sinter and induration process that account for approximately 15% of the sector’s emissions. Using our CAP technology can also cut capital requirements by 86% vs indurated pellets and reduce process complexity, delivering commercial benefits to iron ore miners, pellet producers and steel makers.

BSL’s technology can also be deployed to monetise waste fines from metals production by converting them into CAPs that can be added back to the furnace.

BSL’s advanced Technology Centre provides full life cycle testing for clients from lab scale to furnace trial. We are able to work with a wide variety of ores and to simulate conditions in all types of production furnaces.

In May 2025, BSL announced the signature of a Memorandum of Understanding to assess the potential for a state-of-the-art iron ore CAP plant at HES International’s HBTR terminal in Rotterdam, the largest dry bulk terminal in Europe.

Binding Solutions Limited

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