In a step to redesign his steel production process, Nippon Steel will invest 868.7 billion yen (approx. 6.02 billion US dollars) to build three new electrical arc stoves in Japan. The company also expects up to 251.4 billion US dollars (1.74 billion US dollars). These scrap furnaces are scheduled to start operating in the 2029 financial year and increase annual steel production by 2.9 million tons.
Why is green steel important?
Steel remains a cornerstone for global development, and at the same time E 7% of global carbon emissions contributes to. Although the steel sector releases high CO₂ volumes due to the production scale, steel is still one of the most recyclable and energy-efficient materials over its full life cycle.
Therefore, the decarbonization steel for achieving the global climate goals is of essential importance, since steel production is one of the largest industrial sources for CO₂ pollution. And such a shift is green steel.
Green steel means steel without fossil fuels. One way to reduce the CO2 footprint is to use green hydrogen in the steel production process.
Similarly, electrical arc stoves also help to reduce emissions. They replace older stoves, but do not always use renewable energies, so that their steel is not always completely green.
- Green steel technologies can reduce emissions by up to 97% (H₂-dri) and 88% (renewable scrap) compared to the conventional route for Hochofen-Basic oxygen stove (BF-BOF).
Nippon relies on electrical arc stoves
In contrast to conventional blast furnaces that rely on coal, electrical arc stoves (EAFS) use recycled steel scrap, which significantly reduces CO₂ emissions. While switching to Eafs Nippon Steel helps to get closer to its decarbonization goals, the company recognized the higher costs of electricity and raw materials associated with the transition.
Support from the GX Promotion Act
In March 2021, the steel giant announced its goal to achieve carbon neutrality by introducing three breakthrough technologies:
- High -quality steel production in large electrical arc stoves
- Hydrogen base of direct reduced iron (DRI) production
- Hydrogen injection in blast furnaces
As part of this obligation, Nippon Steel changes with his investment to the transition from the traditional blast furnace steel manufacturing process to the electric arc furnace method.
The company was currently “2025–2029 Energy and Manufacturing Process Transformation” (Business I. Business I. [Steel]) ”After the Green Transformation (GX) Promotion Act. After this recognition, Nippon Steel officially decided to implement the investment.
This postponement is an essential part of Nippon Steel's wider advance to meet its carbon-neutral seeing capacity in 2050, which will be reduced by 30% by 2030 (compared to 2013) and net zero emissions by 2050.
Nippon Steel -Uste -Stahl -Deal received Trump's support
The Wall Street Journal reported that Nippon Steels offer of 14.1 billion US dollars for the acquisition of US Steel recently received support from former President Donald Trump. Although he previously spoke out against the takeover abroad, Trump now calls it a “victory” for American workers and manufacturing.
With regard to the truth, Trump claimed that the deal could create up to 70,000 US workplaces and give 14 billion US dollars in the US economy, most of them within the next 14 months.
Us Steel repeated this optimism and described the deal as a transformation partnership. The company also praised Trump's leadership and explained that it would remain its headquarters in Pittsburgh, a symbolic victory for the city's old workforce.
As part of the agreement, Nippon Steel:
- Improvement of systems in Gary, Indiana and near Pittsburgh
- Build a new US steel mill (location unknown)
- Modernize the older institutions of US Steel with advanced technology
In order to clear up political concerns, Nippon has agreed to set up an board of directors led by the United States with mainly American members to appoint American managers in order to manage US operations and to enable the federal supervision through a national security agreement. However, detailed information on the owners' structure is still pending.
Milestones of the carbon reduction of Nippon Steel
Nippon Steel aims to reduce the total CO₂ emissions by 30% by 2030 (from 2013) and reach net zero by 2050. This goal includes all domestic and consolidated steel manufacturing processes, including blay and electrical ARC oven.
In the 2023 financial year, Nippon Steel's CO₂ emissions derived from Nippon Steel was around 79 million tons, which is 96% of its total greenhouse gas output. The energy consumption in the same period reached 936 Petajoule.
The company's SCOPE 1, 2 and 3 emissions are followed using the Japan Green value added chain platform. Compare the emissions of rifle scope 1 and 2 from the following table
- Total scope 3 emissions from purchased goods and services were 11,995 T-CO₂ in 2023.
In addition, it promotes resource efficiency:
- Electricity generation from by -product gas and waste heat
- Upgrades to coke stoves and oxygen systems
- Highly efficient regenerative burners in warming up stoves
It regularly checks the CO₂ targets for its global subsidiaries to adapt to the changing climate policy and standards.
Blast furnace slack cuts cement emissions
It also cuts emissions through the use of blast furnace slags in cement production. This method reduces the consumption of lime and fuel and reduces CO₂ emissions by around 320 kg per tonne cement – a decrease in more than 40% compared to conventional cement.
Seatang forests and blue carbon loans
In addition to steel production, Nippon pounds through the restored marine ecosystem recovery in blue carbon. In collaboration with fishing cooperatives in Hokkaido and Chiba, it created sea tang beds that can repair CO₂. In 2023, J-Blue Credit ™ certified 33.3 T-CO₂ in emission reductions in new pilot areas. This builds on the earlier certification of 49.5 T-CO₂ for absorption from 2018 to 2022.
In addition, a nationwide algae demonstration is underway at 21 locations. Nippon analyzes the iron concentration and the growth of seabids before and after the installation using its marinesimulator “Sea Laboratory”.
Nippon Steel increases clean production in Japan and expands worldwide. With the help of advanced ovens, efforts by the circular economy and global partnerships, the company undertakes for long -term sustainability.
With increasing steel demand and regulations, Nippon's approach shows how traditional industries can pursue net zero goals without losing scaling or competitiveness.