Addressing Climate Change Issues

JFE Group Environmental Management Strategy

In 2021, the JFE Group established the JFE Group Environmental Vision for 2050, which outlines our commitment to achieving carbon neutrality by 2050. Under our Eighth Medium-term Business Plan, we continue to position climate change initiatives as a top business priority and are accelerating our efforts toward this goal.

Specifically, in the steel business, we aim to reduce greenhouse gas (GHG) emissions by 24% as of fiscal 2027 and by more than 30% as of fiscal 2030 compared to fiscal 2013 levels. To achieve carbon neutrality by 2050, we are striving to develop ultra-innovative technologies, such as a proprietary carbon-recycling blast furnace, and pursuing other promising technological pathways in parallel.

In addition, we are expanding our contributions to GHG emissions reduction across society through various initiatives, such as expanding and developing offshore wind power and other renewable-energy projects in our engineering business, advancing carbon-recycling technologies, and providing high-performance steel products in our steel business.

We are also promoting initiatives for the transition to a circular economy and for the conservation of biodiversity.

Steel Business
Carbon neutrality by 2050
Engineering Business
Expand contribution to GHG emissions reduction across 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.

Roadmap to carbon neutrality

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.