The Swedish steel industry aims to produce fossil-free steel for the global market in the future. Great efforts are being made to optimise the use of resources and make use of the inevitable side streams that arise. Lignin, a high carbon by-product of the pulp/paper industry, has underutilised potential as a carbon source and as a binder for side streams in the steel industry. This study aims to develop systems using lignin as a binder to maximise the recovery of steel residues and investigate its suitability as a reducing agent for iron oxides. The study will include a comprehensive investigation, combined with design and manufacture, of lignin-based agglomerates by briquetting. Different compositions will be studied to clarify lignin's ability as a binder and suitability as a carbon source for next generation steel production. The results will be considered for industrial applicability in the steel and pulp/paper industries.