Kobe Steel, Japan’s third-largest steelmaker, announced plans to explore constructing a large electric arc furnace to replace one of its two blast furnaces in Kakogawa, western Japan.
This move aims to accelerate its decarbonization efforts.
President Yoshihiko Katsukawa stated, “We will consider introducing a large innovative electric arc furnace capable of producing high-end steel products, although this will occur after 2030,” during a briefing with reporters and analysts.
“We haven’t determined our final steelmaking structure yet, but we should consider transitioning to a setup with one blast furnace and one electric furnace,” he said.
Steel production contributes about 7% to 9% of global carbon dioxide (CO2) emissions, so reducing these emissions is crucial in the fight against climate change.
According to the new 3-year management plan unveiled by Kobe Steel on Monday, the company aims to decide on a 300 billion yen ($1.9 billion considering a Conversion rate: $1 = 155.7000 yen) investment within the next three years to reduce CO2 emissions in both steelmaking and power generation operations
However, Katsukawa clarified that the actual spending won’t occur until after March 2027.
Kobe Steel, in addition to its steel operations, has a power generation business and aims to achieve a 20% ammonia co-firing with coal in the No.1 and No.2 units at its Kobe coal-fired power station by 2030.