Nippon Steel Group’s efforts for energy conservation and CO₂ emissions reduction

In March 2021, we announced the Nippon Steel Carbon Neutral Vision 2050, in support of the Japanese government’s ambitious policy to realize a carbon-neutral society in 2050. Through carbon neutralization, we will offer two types of value: “Provision of high-performance steel products and solutions that contribute to reducing CO₂ emissions in society” and “provision of carbon neutral steel through decarbonizing steelmaking processes.” We aim to reduce CO₂ emissions at the time of production and processing by our customers, at the time of use of our products by end consumers; and in the supply chain of our customers.

In addition, Nippon Steel by itself as well as the Nippon Steel Group including consolidated crude steelmaking companies that have blast furnaces and electric furnaces with high CO₂ emissions have set a target for 30% reduction in CO₂ emissions in 2030 compared to 2013. Also, our major domestic consolidated subsidiaries aim to be carbon neutral in 2050. Our overall Group will work together to tackle climate change issues.

Nippon Steel Group’s energy consumption and energy-derived CO₂ emissions

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.

In fiscal 2020, energy consumption and energy-derived CO₂ emissions decreased significantly mainly due to the impact of the COVID-19 pandemic. In fiscal 2021, as we implemented energy-saving measures while the production volume is recovering, our energy consumption and energy-derived CO₂ emissions increased to 1,025 petajoules (PJ) and 87 million tons (preliminary) respectively.

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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Scope1 and 2

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 2021 this activity has been undertaken in collaboration with the Japan International Cooperation Agency (JICA).

The reduction effects of CO₂ emission by transfer of Japanese steelmakers’ energy-saving technologies have amounted to 72.64 million ton reduction in CO₂ emissions per year in total. 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 25.81 million tons globally by fiscal 2020.

Adaptation to climate change

In addition to taking mitigation actions against climate change, we take into account the diverse impact of climate change and appropriately prepare for risks, as adaptive initiatives, and at the same time seek to capture business opportunities.

Preparation for risks

There is a risk that operations and shipments may be interrupted due to the flooding of steelworks and other events, including some caused by abnormal weather as a consequence of climate change. To prevent such risks, we are implementing measures against typhoons and heavy rains, measures to prevent crane overturn, installation of levees, reinforcement of embankments and gradients, and measures to prevent wind and flood damage at each steelworks.

Moreover, our steelworks have enhanced facilities to prevent water pollution. These facilities were provided to increase waste water treatment capacity and involved installation of a large storage tank so that water tainted with iron ore powder would not directly be released into the sea even if our steelworks were subjected to localized heavy rain.

In addition, some administration offices are built on a piloti structure, which means there is open space with no walls on the ground level. This makes the buildings less vulnerable to tsunami. This is a part of our efforts to be well prepared for emergencies such as flooding and high waves.

Capturing business opportunities

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. Adaptation to climate changes also leads to business opportunities for Nippon Steel.

For example, we have developed and provided for actual use various types of products and product utilization technologies in the civil engineering field. They include hat-type sheet piles (contributing to national resilience in a wide range of ways, including measures against liquefaction of river levees, water leakage, and tsunami reaching coastal levee), linear-type steel piles (having a high-tensile strength at the joints, being suitable to cell-type quays, erosion-control dams and water shut-off work, and contributing to measures for sand embankments and against landslide at the time of heavy rain or a typhoon), and a method of preventing subsidence by use of sheet piles.

CO₂ emission reduction by raising efficiency in logistics

Nippon Steel maintains a high modal shift rate of 97% 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 raising efficiency in logistics

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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