4 days ago
Nippon Steel to invest in electric furnaces with government support
Nippon Steel said Friday that it will invest ¥868.7 billion in introducing electric furnaces at its domestic steel plants, with support from the industry ministry.
The ministry announced that it will provide up to ¥251.4 billion in aid for the company's changeover from blast furnaces.
Since the steel-making process produces a large amount of carbon emissions, steelmakers are now taking measures to decarbonize, including replacing blast furnaces, which use coal and other substances to make steel, with electric furnaces.
Nippon Steel aims to cut its carbon dioxide emissions by 30% in 2030 compared with levels in 2013, and realize net-zero emissions in 2050.
The company is set to spend ¥630.2 billion in installing one electric furnace at its Kyushu Works' Yawata Area in Kitakyushu, ¥140 billion for adding one electric furnace at the Hirohata Area of its Setouchi Works in Himeji, Hyogo Prefecture, and ¥98.5 billion in renovating and restarting one existing electric furnace at its Yamaguchi Works in the city of Shunan, Yamaguchi Prefecture.
After starting steel production by the second half of fiscal 2029, the three electric furnaces are expected to have a total annual output of 2.9 million tons.
