Over the past two months, Japan's two largest steel companies have pledged to invest more than 8 billion US dollars to build more electric arc furnaces. These developments mark the beginning of an effort by the Japanese steel industry to phase out coal-based blast furnaces in line with the 2030 decarbonization priorities set by the country's major integrated producers. Nippon Steel, Japan's largest steel company, promised to invest 868.7 billion yen last week to build, remodel, or restart three electric arc furnaces at different locations. By fiscal year 2029, these three steel mills should put into operation nearly 3 million tons of electric arc furnace production capacity, helping to reduce emissions by 3.7 million tons per year. The government is responsible for approximately 30 per cent of the expenditure on these projects. The largest plant is planned to be built in Yawata, and it will be the second commercial-scale electric arc furnace in Japan after starting the Setouchi Electric Arc Furnace in 2022. The Japanese steel giant promised to invest $8 billion to electrify production, 30% of which is covered by public subsidies.

Over the past two months, Japan's two largest steel companies have pledged to invest more than 8 billion US dollars to build more electric arc furnaces. These developments mark the beginning of an effort by the Japanese steel industry to phase out coal-based blast furnaces in line with the 2030 decarbonization priorities set by the country's major integrated producers. Nippon Steel, Japan's largest steel company, promised to invest 868.7 billion yen last week to build, remodel, or restart three electric arc furnaces at different locations. By fiscal year 2029, these three steel mills should put into operation nearly 3 million tons of electric arc furnace production capacity, helping to reduce emissions by 3.7 million tons per year. The government is responsible for approximately 30 per cent of the expenditure on these projects. The largest plant is planned to be built in Yawata, and it will be the second commercial-scale electric arc furnace in Japan after starting the Setouchi Electric Arc Furnace in 2022. The Japanese steel giant promised to invest $8 billion to electrify production, 30% of which is covered by public subsidies.