Sep. 14, 2022
Nippon Steel Corporation
Nippon Steel Corporation (“Nippon Steel”) will launch sales of
“NSCarbolexTM Neutral,” a steel product that is certified as reducing
CO2 emissions in the steelmaking process, in the first half of fiscal 2023.
Nippon Steel has set forth the "Nippon Steel Carbon Neutral Vision 2050" and is working to
reduce CO2 emissions as its most important management issue. NSCarbolexTM Neutral is
a steel product that is certified as reducing CO2 emissions in the steelmaking process by
allocating CO2 emissions that Nippon Steel has reduced in-house through these measures. With
the rapid growth of decarbonization needs in society, we assume that for our customers, delays in
decarbonization can be a factor in losing competitiveness. By quickly establishing a stable supply
structure for NSCarbolexTM Neutral, Nippon Steel will contribute to decarbonization at its
customers.
As a certification method of reducing CO2 emissions, we are considering adopting a method (the
mass balance method) in which the total amount of CO2 emissions that Nippon Steel has actually
reduced by reforming and improving manufacturing processes, etc. is determined and allocated to any given
steel product. The steel industry has significant CO2 emissions in upstream processes (blast
furnaces, etc.), which are essential for the manufacture of various steel products, and it is expected to
take time to develop decarbonization technologies. However, the use of this method will enable us to
respond quickly to customer needs for steel products with reduced CO2 emissions. In addition,
unlike the procurement of CO2 emission allowances through emissions trading, this method is
based on the actual reduction of CO2 emissions through process reform and improvement by
steelmakers themselves and is therefore gaining attention and becoming more widespread as a method for
promoting CO2 emissions reduction. In addition to the CO2 emission reduction
certificate issued by Nippon Steel, NSCarbolexTM Neutral will be provided with a third-party
certificate to ensure impartiality. We plan to use JIC Quality Assurance Ltd. (JICQA) as a certifying
organization and have already confirmed validation of the mass balance method.
Through research and development, Nippon Steel is working to reduce CO2 emissions by
commercializing advanced and innovative manufacturing processes and will apply these results to the supply
of NSCarbolexTM Neutral. In the near term, we plan to take advantage of the CO2
emission reduction effects of the new electric furnace in the Setouchi Works Hirohata Area (scheduled to
start commercial operation within 2022), and we also plan to progressively take advantage of the effects
of other CO2 emissions reduction measures to expand the supply volume of NSCarbolexTM
Neutral.
【Date of sales launch】
First-Half FY2023
(We plan to start supplying the product when its CO2 emission reduction effect is confirmed and
certification from the third party is obtained.)
【Supply volume】
Supply volume in fiscal 2023 is expected to be about 300,000 tons per year, calculated by basic unit
conversion of steel product certified with virtually zero CO2 emissions.
(*Supply volume will vary depending on the scale of Nippon Steel’s CO2 emission
reductions)
We will begin discussing specific sales terms and conditions with customers individually.
【Product types for sale】
All steel products manufactured by Nippon Steel (Product types)
There are no restrictions on product types or production methods.
【Selling prices】
Undecided. However, we are considering to obtain certain premium.
Various factors such as social systems and the value and cost of reducing CO2 emissions are
uncertain at the moment and a premium to the prices of steel products is expected to fluctuate depending
on the changes in the environment.
【Method of allocating effects of CO2 emission reductions】
