Nippon Steel's current energy-conservation initiatives

Nippon Steel has been working on energy conservation from diverse starting points: improving efficient use of energy generated in the steelmaking process (i.e., power generation from recovered by-product gas and waste heat); making operational improvements in each process; renovation of older coke ovens and other equipment; introduction of high-efficiency power generation facilities and oxygen plants; and conversion to regenerative burners in the reheating furnaces.

Thanks to the achievement from these continual efforts, as well as a decline in product output mainly due to the impact of the COVID-19 pandemic, the Nippon Steel Group consumed 896 petajoules (PJ) of energy in fiscal 2020, posting a significant reduction from fiscal 2019. The Group’s energyderived emissions also dropped significantly to 76 million tons (preliminary).

Despite steady positive impacts generated from efforts for energy conservation, the CO₂ emissions intensity has deteriorated mainly due to a decline in production efficiency caused by a decline in production in fiscal 2020 and the impact of heavy rain and operational troubles in fiscal 2018 and 2019, in addition to the impact of introducing energy-consuming large dust collectors and other equipment.

Breakdown of greenhouse gas (tons)

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CO₂ emissions in the value chain

CO₂ emissions originated from energy source and generated in Nippon Steel’s manufacturing process (Scope 1 and Scope 2) as well as CO₂ emissions in the value chain (Scope 3), which are calculated by using the Green Value Chain Platform of the Ministry of the Environment and other methods are as follows.

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Scope 3 All indirect emissions (not included in scope 2) that occur in the value chain of the reporting company

Contributing to the realization of a carbon neutral society through eco-products

In addition to promoting drastic technological innovation in the steel manufacturing process, we are contributing to the realization of a carbon neutral society by providing high-function steel products (Eco-Products) that help customers save energy and reduce CO₂ emissions when using final products. Specifically, we will provide high-performance electrical steel sheets for drive motors as well as ultra-high-tensile steel plates for lighter body weight of electric vehicles, to achieve significant CO₂ reduction effects when our products are used as manufactured products.

Contribution to the global value chain (Eco Solutions)

The Japanese steel industry, including Nippon Steel, contributes to reducing CO₂ emissions on a global scale by transferring Japan's excellent energy- saving technology overseas. Specifically, we are promoting bilateral energy conservation and environmental international cooperation with India and countries in Southeast Asia, through three ways: public-private partnership meetings; technologies customized list; and assessment of steelworks on their status of energy saving. Since fiscal 2020 this activity has been undertaken in collaboration with the Japan International Cooperation Agency (JICA).

Noteworthy is the technology transfer for the Coke Dry Quenching (CDQ) equipment; use of this equipment has a significant effect on reducing CO₂ emissions. The transfer was made by Nippon Steel Engineering Co. of the Nippon Steel Group, contributing to CO₂ emission reduction of approximately 22.96 million tons globally by fiscal 2019.

Nippon Steel’s climate-change management structure

Nippon Steel recognizes climate change as one of important managerial issues. Concerning climate change, its trend, Nippon Steel’s policy, risks and opportunities, the Environmental Management Committee and the Green Transformation Development Committee meet four times or more per year in total to discussand check progress. Related important issues are reported and discussed at the Management Committee and the Board of Directors, and thus are supervised in this regard by the Board of Directors.

Adaptation to climate change

In addition to taking mitigation actions against climate change, Nippon Steel is making initiatives to prepare and adapt to potential impacts of such change. We have many products that are used for a long time as construction material for embankments and other public infrastructure. They contribute to providing solutions for “National Resilience,” such as protecting towns from flooding or high tides caused by heavy rains or typhoons. Adaptationto climate changes also leads to business opportunities for Nippon Steel. In various steelworks in Japan and overseas, water storage tanks have been installed and an administration office is built on a piloti structure, which allows to create an open space with no walls on the lowest floor and makes the building less vulnerable to tsunami. This is a part of efforts of Nippon Steel to be well prepared for emergencies such as flooding and high waves.

CO₂ emission reduction by raising efficiency in logistics

Nippon Steel maintains a high modal shift rate of 96% and works on reducing CO₂ emission by raising efficiency in logistics, such as by using large vessels. As part of the efforts, we are introducing new measures, including introduction of “Utashima” —a hybrid-type cargo vessel, equipped with lithium-ion batteries (awarded the Small Cargo Vessel Award of the Ship of the Year 2019 ). In addition, in cooperation with the Ministry of Land, Infrastructure, Transport and Tourism and various organizations, we are actively undertaking efforts to introduce ships utilizing new alternative fuels, such as hydrogen and ammonia, in order to reduce greenhouse gas generated by sea transport.

CO₂ emission reduction by manufacturing Blast furnace cement

By using blast furnace slag for cement production, we are able to reduce the amount of lime and fuel required, and reduce CO₂ emissions per ton of cement by 320 kg (more than 40% reduction compared to ordinary cement).

CO₂ emissions from cement production

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Japan Iron and Steel Federation’s action plans for a low carbon society

From fiscal 2013 on, Nippon Steel has been participating in the Action Plans for theRealization of a Low-Carbon Society for further CO₂ reduction by means of the three ecos. ThePhase I of the Action Plans for a Low-Carbon Society targets a 5 million ton reduction in CO₂ emissions by fiscal 2020. The Japan Iron and Steel Federation is focusing on a 3 million tonreduction in CO₂ emissions at the steelmakers’ own initiatives for maximum adoption of advancedtechnologies based on its production assumption. The additional 2 million ton reduction is to be achievedby an increase in the collected volume of waste plastics compared to fiscal 2005, as the amount ofreduction in emissions.
In addition, Nippon Steel makes publicly known its views and opinions ondiverse public policies concerning global climate change through the Japan Iron and Steel Federation.

http://www.jisf.or.jp/business/ondanka/iken/teigen/

Japan Iron and Steel Federation’s Action Plans for a Low-Carbon Society
(“Three ecos and innovative technology development”)

1: The target reductions in CO₂ emission volume are set for fiscal 2005 as the base year and based on a certain crude steel production assumption.
2: The primary focus is on a 3 million ton reduction in CO₂ emissions by steelmakers’ own initiatives for efficient use of energy and other ways. Concerning collection of waste plastics and other ways, only an increase in the collected volume compared to fiscal 2005 is counted as the amount of reduction in emissions.