Nippon Steel to invest Y868.7B to reduce carbon emissions

In March 2021, Nippon Steel (NPSCY) announced to achieve carbon neutrality with the use of the three breakthrough technologies: “high-grade steel production in large-sized electric arc furnaces,” “production of direct reduced iron using hydrogen,” and “hydrogen injection into blast furnaces.” With regard to its investment in “the conversion from the blast furnace steelmaking process to the electric arc furnace steelmaking process,” on Friday Nippon Steel was selected for the “2025-2029 Energy and Manufacturing Process Transformation Support Business” based on the Green Transformation Promotion Act, and as such has made the decision to carry out the Investment. The company plans to invest Y868.7B to establish three electric furnaces in Japan and that it expects the Japanese government to provide up to Y251.4B in support. The investment will increase production capacity by about 2.9 million tons a year, with operations scheduled to commence by the fiscal year starting April 2029. Nippon Steel recently received conditional approval from President Trump to take control of U.S. Steel (X) under what he described as a partnership.