Addressing Climate Change Issues

JFE Group Environmental Vision for 2050

In 2021, the JFE Group formulated the JFE Group Environmental Vision for 2050 with the aim of becoming carbon neutral by 2050, positioning climate change initiatives as one of the most important issues in its Seventh Medium-term Business Plan. In the steel business, we aim to cut CO₂ emissions by at least 18% by the end of fiscal 2024, compared with the fiscal 2013 level.The JFE Steel targets a reduction of more than 30% in CO₂ emissions by fiscal 2030, compared with the fiscal 2013 level. To explore all possibilities for realizing carbon neutrality by 2050, we will take on the challenge of developing ultra-innovative technologies such as carbon-recycling blast furnaces developed with our unique technology while also adopting a multitrack approach for pursuing other technologies.

We will widen our contribution to the reduction of CO₂ emissions in society as a whole by expanding and advancing renewable power generation and carbon-recycling technologies in the engineering business, by supplying high-performance steel products in the steel business, and through other initiatives. Furthermore, we will accelerate commercialization of our offshore wind power business by applying the strengths of the Group.

Briefing session on JFE Group Environmental Vision for 2050

[Movie] JFE Steel's Carbon Neutral Initiatives

Introduce key initiatives for carbon neutrality in 2050.

[8.13/601M]

Steel Business
Carbon neutrality by 2050

Engineering Business
Expand contributions to CO₂ emissions reduction in society

Efforts to Achieve Carbon Neutrality in Steel Business by 2050

JFE is advancing multifaceted efforts, including the development of ultra-innovative technologies, toward achieving carbon neutrality by 2050. In the steel business, we have defined the period up to 2030 as the transition phase, and the period thereafter as the innovation phase. During the transition phase, JFE is working on energy conservation and efficiency improvements in existing processes, as well as the utilization of electric arc furnace technology.

During the innovation phase, we will challenge ourselves with the research and development of ultra-innovative technologies such as carbon-recycling blast furnaces and hydrogen steelmaking (direct reduction), aiming to achieve carbon neutrality by 2050.

JFE Steel Corporation Carbon Neutrality Strategy Briefing

Advantages and disadvantages on the path to carbon-neutral steelmaking

Steel is an essential material that is key to an abundant planet in the future, and demand for steel will never go away. Achieving a carbon-neutral process for steelmaking is necessary for the future of the planet, but the technologies for this have not yet been established. Steelmaking processes currently include blast furnace steelmaking, electric furnace steelmaking, and direct reduction steelmaking methods. Each process has advantages and disadvantages with respect to the objective of attaining carbon neutrality. We believe it will be important to take a multitrack approach to innovation for overcoming these disadvantages.

	Blast furnace	Direct reduction	Electric arc furnace

Advantages	Stable mass production Can use existing equipment Can use low- and medium-grade ore Can manufacture high-grade steel	CO₂ emissions are low Carbon neutrality once 100% hydrogen reduction is possible	CO₂ emissions are low
Disadvantages	Requires replacement of coke and other materials with carbon-neutral reducing materials Use of CCUS^* is essential Yet-unestablished method needed to prevent temperature drop in furnace during hydrogen reduction Hydrogen cost is high	Only high-grade ores can be used New measures needed to prevent temperature drop in furnace during hydrogen reduction Hydrogen cost is high	Low productivity Manufacturing high-grade steel is difficult Scrap alone is insufficient iron source Requires a carbon-free electricity High cost of electricity (Japan)

*CCCUS: Carbon Capture, Utilization and Storage

Development of Ultra-innovative Technologies

	Ultra-innovative blast furnace (Carbon-recycling blast furnace)	Direct-reduction steelmaking	Large, high-efficiency EAF
Development project
Target	Reduce CO₂ emissions by 50% or more (compared to conventional blast furnaces)	Reduce CO₂ emissions by 50% or more (compared to conventional blast furnaces)	Establish high-quality and high-efficiency melting technologies
Description	Technology to inject a large amount of oxygen and e-methane Developing technology for seamless operations between the blast furnace and the methanation facility	Heat compensation for hydrogen reduction (injection of high-temperature hydrogen and e-methane) Optimizing conditions for injecting reduced gas according to the grade of the raw material	Improving steel quality by facilitating the denitrification with hydrogen gas and dephosphorization with suppress reoxidation High-efficiency melting through burner lance, preheating of reduced iron, and molten steel stirring
Period	Test scheduled for FY2025-2026	Test scheduled for FY2024-2026	Test scheduled for FY2024-2025

Collaborating with Society on Carbon Neutrality

While achieving carbon neutrality is a top management priority for JFE Steel, generating environmental value involves large investments and cost increases associated with transitioning, requiring efforts beyond the private company level.

In order to maintain and strengthen Japan's overall industrial competitiveness, long-term and continuous government support for R&D and facility implementation of discontinuous innovation is essential.

We will make various recommendations on climate change measures and energy policies in Japan, and promote activities through industry associations.