Two of the largest integrated steel producers in Japan, Nippon Steel and JFE Steel, have applied for government funding allocated through the new Green Transformation Promotion Act (GX) to advance research and development in decarbonising operations.
JFE Steel is seeking funds to build a new large electric arc furnace (EAF) to replace blast furnace No. 2 at West Japan Works (Kurashiki). The company expects the EAF to be commissioned between 2027-2028.
Blast Furnace No. 2 at the plant underwent a re-lining in 2003. JFE usually performs such maintenance after about 25 years of operation, so the next one is due in 2028. However, JFE Steel hopes that the new electric arc furnace will be operational by then, so the unit can be shut down. West Japan Works currently operates three blast furnaces with a steel output of about 8Mt/yr.
Yoshihisa Kitano, president of JFE Steel’s parent company JFE Holdings, said in June that JFE is developing a high-efficiency smelting technology and building a pilot electric arc furnace to be commissioned by 2025.
Nippon Steel has applied for a government subsidy to build new electric arc furnaces. The steelmaker plans to use the state support to switch from blast furnace smelting to large-scale EAF production at its Kyushu Works Yawata Area plant. In addition, the company plans to expand EAF production at Setouchi Works Hirohata Area.
The Japanese government is providing budget support to companies in four target sectors (ferrous metals, chemicals, pulp and paper, and cement) starting this year, with the total investment amounting to roughly 484 billion yen ($3.18 billion) over five years.