Elkem ASA has finalized an agreement to sell its biocarbon pilot and demonstration business in Saguenay, Quebec, to CHAR Technologies Ltd.. The transaction, closed on April 20, 2026, includes the transfer of the physical production facility and Elkem’s proprietary biocarbon pelletizing intellectual property. Concurrent with the sale, the two organizations have entered into a five-year binding offtake agreement, securing a long-term supply of biocarbon for Elkem’s industrial operations. This strategic move allows Elkem to transition its research and development efforts into commercial-scale production through a partnership with an established clean technology operator.

The primary challenge addressed by this transaction is the scaling of validated biocarbon technology from a research pilot to consistent, commercial-grade industrial supply. Elkem developed its biocarbon pellet process specifically to reduce the carbon footprint of ferrosilicon production in electric arc furnaces, which traditionally rely on fossil coal. However, managing the specialized technical and operational requirements of a commercial production facility presented a hurdle for a materials-focused company like Elkem. By divesting these assets, Elkem addresses the need for a reliable, large-scale source of sustainable carbon while focusing on its core silicon-based materials business.

CHAR Technologies provides the solution through its specialized expertise in high-temperature pyrolysisPyrolysis is a thermochemical process that converts waste biomass into bio-char, bio-oil, and pyro-gas. It offers significant advantages in waste valorization, turning low-value materials into economically valuable resources. Its versatility allows for tailored products based on operational conditions, presenting itself as a cost-effective and efficient More and biocarbon manufacturing. CHAR Tech plans to upgrade the acquired Saguenay facility to a commercial capacity of 15,000 tonnes per year. Once the site is upgraded, it will process raw biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More from CHAR Tech’s project pipeline into high-density biocarbon pellets tailored for heavy industrial decarbonization. To support the acquisition and subsequent facility upgrades, CHAR Tech has secured a $3.5-million term loan from Bioveld Canada.

The immediate outcomes of this partnership include the securing of 62,500 tonnes of biocarbon for Elkem over the next five years, delivered at an annual rate of 12,500 tonnes. This agreement provides CHAR Tech with long-term revenue visibility and a firm foundation for expanding its industrial biocarbon vertical. For Elkem, the partnership ensures a stable supply of carbon-neutral materials for its Canadian and European smelters, directly supporting its ESG goals and industrial decarbonization strategy. Furthermore, the deal positions Saguenay as a regional hub for biocarbon production, contributing to Quebec’s ongoing energy transition.