Activities For Reducing CO2 and Conserving Energy During Production

Achieved the world’s top-class energy efficiency

Since the first oil crisis in 1973, Nippon Steel and Japan’s steel industry have intensively invested in technology for better energy conservation in production processing, and in technology to collect energy. Specifically, we promoted innovation in processing, by introducing continuous casting machines and continuous annealing furnaces, and improvement in processing such as by direct hot charging and automatic burning control. Regarding energy collection, by-product gas generated in processing of coke ovens, blast furnaces, converters, and other areas have been collected and reused highly efficiently; exhaust heat and exhaust pressure from Coke Dry Quenching (CDQ), regenerative burners, and Top Pressure Recovery Turbines (TRT) have also been collected; and use of waste plastics and other waste substances have been promoted. Starting in 2010, the Super Coke Oven for Productivity and Environmental Enhancement toward the 21st Century (SCOPE21) was developed, and high-efficiency by-product burning power generation facilities were introduced as a part of unrelenting efforts in energy conservation.
These steady efforts have led to Japan’s steel industry achieving significant energy conservation and the world’s top-class energy efficiency.
Moreover, we concentrate efforts at R&D, enabling us to implement more advanced measures. In fiscal 2017 R&D expenditures related to climate change measures amounted to JPY7.8 billion.

Energy efficiency in steelmaking by country (2015)

Source: International Comparisons of Energy Efficiency (Sectors of Electricity Generation, Iron and steel, Cement), RITE, 2010 (The Japanese translation and numerical values were provided by the Japan Iron and Steel Federation.)

Continue CO2 emission reduction by implementing the three ecos

Based on the 32.3 billion metric tons of CO2 emissions from worldwide fossil fuel combustion in 2015, Japan’s product emissions represent 3.5% of global CO2 emissions from combustion of fossil fuels. Japan also accounts for 2.5% of worldwide greenhouse gas emission, according to estimates by the International Energy Agency in 2014.

According to the latest data available, Japan’s CO2 emissions from fossil fuel combustion amounted to 1.13 billion metric tons in 2016 and the industrial segment accounted for roughly one-third of that. As a member of the Japan Iron and Steel Federation, Nippon Steel has been playing a part in CO2 emission reduction of the industrial segment through implementing “eco processes,” and introducing “eco products” and “eco solutions” in Japan and overseas.

Breakdown of CO2 emissions from fossil fuel combustion

Energy conservation and CO2 emissions reduction

The most effective measure against global warming is energy conservation, and, therefore, Nippon Steel is striving to improve energy effi ciency by using energy generated in steelmaking processes, including power generation through use of by-product gas or exhaust heat recovery, or by reusing waste plastics and discarded tires. As a result of these efforts, the Nippon Steel and affiliated electric furnace companiesOsaka Steel Co., Ltd., Godo Steel, Ltd., Nippon Steel & Sumikin Stainless Steel Corporation, Nakayama Steel Works Ltd., Nippon Coke & Engineering Co., Ltd, three Cooperative Thermal Power Companies (Kimitsu, Tobata and Oita), and two Sanso Centers (Nagoya and Oita) consumed 1,018 PJ energy and emitted 88 million tonsA provisional value based on the assumption that the CO2 level in a unit of purchased electricity in FY2017 is the same as in FY2016. of CO2 in fiscal 2017.

Nippon Steel’s energy consumption

1 PJ indicates peta-joules (1015 joules).
 A joule is a unit of energy, or amount of heat.
2 GJ indicates giga-joules (109 joules)

Nippon Steel’s energy-derived CO2 emissions

3 A provisional value based on the assumption that the CO2 level in a unit of purchased electricity in fiscal 2017 is the same as in fiscal 2016.

The Kimitsu Works’ Tokyo Area has participated in the Tokyo Metropolitan Government’s (TMG) Cap-and-Trade Program concerning obligation to reduce greenhouse gas emission, and its trade scheme, since fiscal 2010. Based on the TMG’s Greenhouse Gas Emission Amount Verification Guidelines of the Cap-and-Trade Program, it has been receiving third-party verification on the amounts of CO2 emissions and energy consumption.

Breakdown of greenhouse gas (tons)

  FY2016 FY2017
CO2 emissions from energy sources 90,6000,000 88,300,000
CO2 emissions from non-energy sources 3,491,446 3,182,936
CH4 117,210 110,547
N2O 135,014 136,013

Nippon Steel Group’s Scope 3 emissions (tons)

Category FY2013 FY2014 FY2015 FY2016 FY2017
Transportation and distribution (upstream) 269,980 232,654 241,113 252,532 249,031
Transportation and distribution (downstream) 562,882 527,531 474,041 482,927 507,073

CO2 emissions in production of cement

FY2014 FY2015 FY2016 FY2017
Cement production output (10,000 tons) 232 221 208
Cement production capacity (10,000 tons) 335 335 335
Clinker production output (10,000 tons) 142 134 130
Clinker production capacity (10,000 tons) 163 163 163
Clinker output/Cement output (10,000 tons) 0.61 0.61 0.63

FY2014 FY2015 FY2016 FY2017
CO2 emission amount (10,000 tons-CO2) 127 122 118
CO2 emission intensity (KG-CO2/t-cem) 547 552 567

Use of alternative fuel (%)

Nippon Steel’s ratio of use of alternative fuel is as follows:

FY2014 FY2015 FY2016 FY2017
Ratio of use of alternative fuel 90% 88% 81% 78%

Ratio of power generated by by-product gas and exhaust heat in in-house power generation

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 the Realization of a Low-Carbon Society for further CO2 reduction by means of the three ecos. The Phase 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 ton reduction in CO2 emissions at the steelmakers’ own initiatives for maximum adoption of advanced technologies based on its production assumption. The additional 2 million ton reduction is to be achieved by an increase in the collected volume of waste plastics compared to fiscal 2005, as the amount of reduction in emissions.
In addition, Nippon Steel makes publicly known its views and opinions on diverse public policies concerning global climate change through the Japan Iron and Steel Federation.

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

4 The target reductions in CO2 emission volume are based on a certain crude steel production assumption.

5 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.

Promote innovative technology development

In addition to promoting the three ecos, the industry has worked at developing theinnovativesteelmaking process (COURSE50) from a medium-tolong-term CO2 emissionreduction perspective. From2023 onward, undertheActionPlansforaLow-CarbonSociety, theglobal warmingcountermeasureswillbesteadilyimplementedonthebasis of the three ecos and COURSE50.

Use of bio fuel in independent power production results in CO2 reduction

Kashima Thermal Power Station

Kashima Thermal Power Station

Kashima Works’ 500,000 kW Thermal Power Station (an Independent Power Producer or IPP) began operation in 2007 and burns scrap wood chips, which are made from used wood pallets, as an alternative fuel to coal. In fiscal 2017, dregs from coffee making and wood chips, coming to approximately 12,789 tons in total, were used, resulting in a CO2 emission reduction of about 9,065 tons.

Woody biomass (Kamaishi)

Woody biomass (Kamaishi)

Kamaishi Works utilizes biomass resources such as leaves, and branches trimmed from lumber trees as biomass energy. This also contributes to forest improvement. In fiscal 2017, woody biomass of 29,569 tons was used, resulting in a CO2 reduction of about 22,700 tons.

Coping with the global climate change

In addition to taking measures to combat the challenges posed by global climate change, Nippon Steel is making initiatives to prepare and cope with potential impacts of such change.
We have many products that are used for a long time as material for public infrastructure. For example, one such product is for embankments, which helps protect communities from flooding or high tidal waves generated by torrential rain or typhoon. Another example is to build an administration building on a piloti structure in various steelworks in Japan and overseas. By creating an open space with no walls on the lowest floor and without installing water storage tanks, this piloti structure enables building to be less vulnerable to tsunami. This is a part of efforts of Nippon Steel to be well prepared for emergencies such as flooding and high tidal waves.

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