Japan’s major steel producer Nippon Steel has applied for a government subsidy to build new electric arc furnaces (EAF).
The state subsidy applied for by the company provides financial support for industries that are difficult to reduce greenhouse gas emissions, for the transformation of production processes.
The government will allocate a maximum of about ¥500 bn (USD 3.3bn) to the entire funding scheme under the program.
The transition from a traditional converter furnace to an electric arc furnace can significantly reduce carbon emissions, but requires large capital expenditures. The steelmaker plans to use government support to transition from blast furnace smelting to large-scale production at EAF at the Kyushu Works Yawata Area plant. In addition, it is about the expansion of electric steel production at the Setouchi Works Hirohata Area.
The Japanese government is likely to approve Nippon Steel’s request to continue its decarbonisation strategy. Japan aims to achieve zero emissions by 2050. The steel industry in the country accounts for 35% of the total volume of emissions in the processing industry.
