Kobe Steel says it may build new electric arc furnace in decarbonisation push

Kobe Steel

20/05/2024 08:20

TOKYO, May 20 (Reuters) - Kobe Steel  5406.T , Japan's
No.3 steelmaker, said on Monday it will consider building a
large electric arc furnace to replace one of its two blast
furnaces in Kakogawa, western Japan, in an effort to accelerate
its decarbonisation drive.
    "We will consider an introduction of a large innovative
electric arc furnace which can make high-end steel products,
although it will be done after 2030," President Yoshihiko
Katsukawa told reporters and analysts.
    "We don't know what our final steelmaking structure will be,
but we should make considerations to move to a scheme with one
blast furnace and one electric furnace," he said.
    Steel production accounts for about 7% to 9% of global
carbon dioxide (CO2) emissions, so efforts to reduce them is one
of the key targets in the fight against climate change.
    Under the new 3-year management plan unveiled by Kobe Steel
on Monday, the company aims to make decisions on the 300 billion
yen ($1.9 billion) investment in the next three years to reduce
its CO2 emissions in steel-making and power generation
operations.
    But the actual spending will be made after March 2027,
Katsukawa said.
    Kobe Steel, which also operates a power generation business,
plans to realise a 20% ammonia co-firing with coal in the No.1
and No.2 units at its Kobe coal-fired power station toward 2030.
    
    ($1 = 155.7000 yen)

 (Reporting by Yuka Obayashi; Editing by Krishna Chandra Eluri)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))