Japanese steelmaker takes action to decarbonize production

Nippon Steel Corp, a leading manufacturer in Japan, is shifting its focus to metal recycling as ambitious zero-emission targets intensify the race to develop cleaner steel.

Nippon Steel's executive vice president Katsuhiro Miyamoto said in an interview on Friday that decarbonization measures are one of the pillars of Nippon Steel's mid-term business plan, which begins in April. As part of its efforts, the company is working on research to create much larger electric arc furnaces, which are used to make steel from scrap, for mass production of metal, he said.

Steelworkers are forced to respond to zero-emission targets set by the governments of Europe, China and Japan, which aim to be carbon neutral by 2050.

A United Nations report released on Friday summarized the new national climate commitments and concluded that the efforts are “far from in line” with what is needed to slow global warming.

“Since the government has introduced the policy, we will include zero carbon measures in the business plan,” Miyamoto said in an interview.

"First, we need to direct our resources to research and development."

The third largest producer in the world has been producing steel from mined iron and coal in polluting blast furnaces for over a century.

Although electric furnaces emit only a small proportion of carbon dioxide compared to blast furnaces, the production of high quality steel is still a problem because scrap contains impurities.

Steel is the largest source of pollution in the country's manufacturing sector, and the Japan Iron and Steel Federation has said the industry aims to be carbon neutral by 2050.

Federation chairman Eiji Hashimoto, who is also president of Nippon Steel, warned that domestic producers would face a "survival crisis" if they lose in the global competition to develop cleaner steel.

In addition to producing higher quality recycled steel, Miyamoto said streamlining operations at aging plants in Japan and expanding beyond a shrinking domestic market will be top priorities in Nippon Steel's medium-term business plan, adding that the company will provide more details. according to plan by the end of this month.

Strong Chinese demand and economic stimulus around the world are tightening global steel markets, Miyamoto said, and this is likely to continue this year.