Nippon Steel to launch low-emission steel products next year

Kobe Steel

14/09/2022 09:44

By Yuka Obayashi
    TOKYO, Sept 14 (Reuters) - Japan's biggest steelmaker Nippon
Steel Corp  5401.T  said on Wednesday it will start selling
steel products next year that are certified as reducing carbon
dioxide (CO2) emissions from the steel manufacturing process.
    As steelmakers worldwide face pressure to cut emissions to
combat climate change, Nippon Steel has set itself a goal to
trim its CO2 emissions in 2030 by 30% versus 2013 levels.
    On a certification, Nippon Steel plans to adopt a so-called
mass balance method in which the total amount of CO2 emissions
that the company has actually reduced by improving manufacturing
processes is determined and allocated to any given steel
product.
    The company will take an advantage of the emission reduction
effects of the new electric arc furnace (EAF) in Hirohata at its
Setouchi Works in western Japan, scheduled to start commercial
operation later this year. The previous process used coal as an
energy source and reduced iron as a raw material whereas the EAF
uses electricity and metal scrap.    
    "It will take time to develop decarbonisation technologies,
but the use of this method will enable us to respond quickly to
customer needs for low-emission steel products," Hiroshi
Tsunochi, the head of sales planning department, told reporters.
    The company plans to supply 300,000 tonnes of the
carbon-reduced products a year after launching it by
end-September next year. Its overall shipment stood at 36
million tonnes in the last business year ended March 31.
    "We aim to increase the supply volume (of low-carbon steel)
to 10 million tonnes in 2030," Tsunochi said, but declined to
comment on details of premiums it plans to charge.
    Smaller rival Kobe Steel  5406.T  aims to sell one million
tonnes of low-carbon steel a year in 2030.  urn:newsml:reuters.com:*:nL3N2X91R0
    Globally, steelmakers are investing heavily in cutting
emissions as the sector accounts for about 7%-9% of global CO2
emissions.
    Japan's No.2 steelmaker JFE Steel plans to spend 1 trillion
yen ($7 billion) on low-carbon technology over the next eight
years.  urn:newsml:reuters.com:*:nL4N3082AP
    
($1 = 143.5400 yen)

 (Reporting by Yuka Obayashi; editing by David Evans)
 ((Globally, steelmakers are investing heavily in cutting down
emissions as the sector accounts for about 7-9% of global CO2
emissions.
    Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))