Nippon Steel Corp. has announced a substantial investment [1] of 868.7 billion yen to introduce electric furnaces at its domestic steel plants, marking a significant step toward decarbonization. The Japanese government, through the industry ministry, will provide up to 251.4 billion yen in financial aid to facilitate the transition from traditional blast furnaces to more environmentally friendly electric alternatives.
The shift comes as part of Nippon Steel’s broader commitment to reducing carbon dioxide emissions by 30% by 2030, compared to 2013 levels, and achieving net-zero emissions by 2050.
The company’s investment will be allocated across three key facilities, 630.2 billion yen for the installation of a new electric furnace in Kyushu Works’ Yawata Area, 140 billion yen for an additional electric furnace in Setouchi Works’ Hirohata Area and 98.5 billion yen for the renovation and restart of an existing electric furnace in the Yamaguchi Works.
The transition to electric furnaces aligns with global efforts to decarbonize steel production, as traditional blast furnaces rely on coal-based processes that generate high emissions. By adopting electric furnaces, Nippon Steel aims to enhance sustainability while maintaining its competitive edge in the industry.
Sources:
[1] Nippon Steel to Invest in Electric Furnaces with Govt Support https://www.nippon.com/en/news/yjj2025053000604/