Japan's JFE to convert Kawasaki site into hydrogen base (updated)

JFE Holdings

07/09/2023 13:10

(Adds detail, quotes in paragraphs 4,6,7)
    By Yuka Obayashi
       KAWASAKI, Japan, Sept 7 (Reuters) - Japan's JFE Holdings
Inc  5411.T  said on Thursday it will shut a blast furnace at
its Keihin plant in Kawasaki, near Tokyo, on Sept. 16 and
convert the site into a supply base for hydrogen and a cluster
of next-generation industries.
    Japan's second-biggest steelmaker announced the plan to
close the blast furnace in 2020, as part of its restructuring to
reflect falling local demand in the ageing society and
intensifying competition with Chinese rivals.
    The planned shutdown will reduce the number of its domestic
blast furnaces to 7, trimming its annual capacity of crude steel
output by 4 million metric tons, or 13%, to 26 million tons.
    The steelmaker will keep some of the production facilities
such as plate mills, but will work with the Kawasaki city
government and other companies that have facilities in nearby
regions to make the industrial site into a leading area for
carbon-neutral energy in Japan, Makoto Iwayama, senior vice
president of JFE, told reporters.
    JFE aims to develop the new complexes in phases through
2050, including a supply chain for hydrogen and other
emission-free fuels, as well as a cluster of next-generation
industries, such as fully-automated driving systems, drones and
flying cars.
    "With the declining birthrate and other factors, the land
use of waterfront industrial complexes is likely to change in
many parts of Japan going forward," Iwayama said.
    "We would like to be a model district for the transformation
of these complexes."
    JFE did not provide the project cost, saying the details of
the development plan need to be worked out.
    Earlier this year, Kasawaki city government estimated that
the project cost in the area would be 2.06 trillion yen ($14
billion) in total by 2050, including both public and private
sectors.
($1 = 147.3000 yen)

 (Reporting by Yuka Obayashi; Editing by Sonia Cheema and Sharon
Singleton)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))