Japanese steelmaker JFE has announced its plans to spend $7.2 billion (1 trillion yen) on reducing its carbon footprint by developing low-carbon technology.
The steel giant’s goal is to essentially reach its sustainability goals by 2030, as was shared by president Yoshihisa Kitano on Thursday.
Steel is an especially hard-to-abate sector that has been under much pressure to reduce CO2 emissions in the wake of the climate crisis.
JFE Steel has set an ambitious target of slashing its emissions by 30% by 2030 compared to 2013 levels.
For comparison, Japan’s national target is to cut carbon dioxide emissions by 46% by 2030, again from 2013 levels.
To achieve such vast reductions, however, Kitano pointed out that government support would be required to ensure that JFE can get a premium on the sale of low-carbon steel for the massive $7.2 billion investment to be justified.
Some of the low-carbon tech JFE Steel intends to invest in include electric arc furnaces (EAF) and carbon capture and storage (CCS) to prevent more CO2 from entering the atmosphere.
Furthermore, the company is set to join forces with overseas partners and conduct feasibility studies alongside Emirates Steel Arkan, the top steelmaker in the United Arab Emirates for the purpose of establishing a low-carbon steel supply chain.
As part of the collaboration, Emirates Steel will reduce iron ore by using natural gas and the resulting CO2 emissions will be captured and injected into oil fields for enhanced oil recovery (EOR).
Production is scheduled to commence in late 2025 and result in 2.5 million tons of steel per year.