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JFE Steel to invest USD 2.2 billion in EAF in Japan

JFE Steel Corporation announced that it will build an advanced, highly efficient, large-scale electric arc furnace plant in Japan with an investment of USD 2.2 billion.

JFE Steel to invest USD 2.2 billion in EAF in Japan

JFE Steel Corporation, one of Japan's leading steel producers, announced that it will build an advanced electric arc furnace at its Kurashiki plant in West Japan Works to contribute to its carbon neutrality goals.

The company stated that it aims to start a new steelmaking process with this innovative technology by fast-tracking the construction of the EAF. The first phase of the national project is aimed at transforming the energy and production processes of sectors that are struggling to reduce their emissions.

A total investment of JPY 329.4 billion ( approximately USD 2.2 billion) will be invested in the project, which will see the construction of various infrastructure facilities, including an advanced electric arc furnace, outsourced refining facilities, cold iron welding distribution facilities and a refurbished dock. Government grants are expected to cover JPY 104.5 billion of this cost. The electric arc furnace is scheduled to have an annual capacity of about 2 million tons of steel and start production in April 2028.

The new electric arc furnace will be equipped with JFE Steel's proprietary technologies and other innovative technologies that promote the use of hydrogen to reduce carbon emissions in steel production. This initiative is being developed as part of the Green Innovation (GI) Fund project organized by Japan's New Energy and Industrial Technology Development Organization (NEDO) to develop high-efficiency smelting technologies and high-quality, efficient steel production.

By combining these advanced technologies with low-carbon direct reduced iron, JFE Steel aims to produce high-quality and high-functional steel materials, especially electromagnetic steel sheets and high-tensile steel sheets, which are not possible to produce with existing large-scale electric arc furnaces.

By 2050, JFE Steel aims to achieve carbon neutrality, and in the process has established various test facilities at its Chiba plant, including a carbon recycling blast furnace and a small-scale electric arc furnace. The concentration of these test facilities in one location allows JFE Steel to develop ultra-innovative technologies with high efficiency.

In May 2021, JFE Steel established the “JFE Group Environmental Vision”, which envisions taking bold steps to combat climate change in line with environmental goals by 2050. The company stated that it is committed to developing super innovative technologies to contribute to global sustainability.

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