Oct.11, 2024
Nippon Steel Corporation
Nippon Steel Stainless Steel Corporation
Nippon Steel Corporation ("NSC") and Nippon Steel Stainless Steel
Corporation ("NSSC") have decided to apply for the “Energy and Manufacturing Process
Transformation Support Business (Business I (Steel))” based on the Green Transformation (GX)
Promotion Act, for which acceptance of applications began on October 8, 2024.
In its “Nippon Steel Carbon Neutral Vision 2050” announced in March 2021, NSC aims to achieve
carbon neutrality in 2050 by using three breakthrough technologies: hydrogen injection into BFs; hydrogen
direct reduction of iron; and high-grade steel production in large-sized EAF.
In October 2022, NSC commenced commercial operation of the EAF in the Setouchi Works Hirohata Area, and
has been operating an integrated EAF steelmaking process to manufacture and supply high-grade electrical
steel sheets and other high-grade steel products. Since May 2023, we have been conducting full-scale
studies on the conversion to the EAF steelmaking process, with the aim at achieving our 2030
decarbonization target. We have decided to apply for the “Energy and Manufacturing Process
Transformation Support Business (Business I (Steel))” registration based on the GX Promotion Act, in
order to implement the conversion of the upstream steelmaking process at the NSC Group’s high-grade
steel manufacturing bases. Specific plans are to make a conversion from the BF process to the large-sized
EAF process in the Kyushu Works Yawata Area, to expand the EAF in the Setouchi Works Hirohata Area, and to
resume EAF operations at NSSC’s Yamaguchi Works (Shunan Area).
While the conversion from the BF process to the EAF process would have a significant effect of
CO2 reduction, huge capital expenditures and considerable increases in production costs,
including costs of raw materials and electricity, are expected. In order to create and expand the market
for green steel, where the effects of CO2 reduction are appropriately evaluated, regulatory and
institutional measures need to be embodied as soon as possible. As part of the study on the creation of
the GX market, which was proposed in the “Grand design for studies toward the GX 2040 Vision”
at the GX Implementation Council meeting in August this year, we will continue to strongly urge the early
embodiment of these regulatory and institutional measures. We will also work to promote greater public
understanding of green steel, including establishment of international standardization, and work to
achieve carbon neutrality.
