JFE to spend USD 7.2 bn to cut CO2 emissions

Japan’s JFE Steel plans to spend 1 trillion yen (USD 7.2bn) on low-carbon technology over the next eight years to achieve its 2030 goal to cut carbon dioxide (CO2) emissions.

Japan’s No.2 steelmaker plans to build a large-scale EAF as early as in 2027 to replace the No.2 blast furnace at its Kurashiki plant in western Japan.

JFE Steel will also conduct feasibility studies with Emirates Steel Arkan and Itochu Corp to create a supply chain of low-carbon ferrous raw material.

Under their plan, Emirates Steel will use natural gas for the direct reduction of iron ore. CO2 emitted in the process will be injected into oilfields to enhance oil recovery.

They aim to start production in late 2025 and produce 2.5 million tonnes per year.

JFE‘s investment also includes developing a new method of “carbon-recycling” to make blast furnaces less carbon-intensive by using hydrogen to convert CO2 in the exhaust gases into methane for injection back into a furnace as an agent to reduce the iron ore.

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