In a push to reduce its carbon footprint, Japan’s third-largest steelmaker, Kobe Steel, has announced that it will consider building a large electric arc furnace to replace one of its two blast furnaces at its Kakogawa facility in western Japan.
Kobe Steel President Yoshihiko Katsukawa stated that the company is exploring the introduction of an “innovative electric arc furnace” that can produce high-end steel products, though this would likely happen after 2030.
Katsukawa said the company is considering a shift to a steelmaking structure with one blast furnace and one electric furnace, though the final configuration is yet to be determined.
Steel production accounts for about 7% to 9% of global carbon dioxide (CO2) emissions, making the industry a key target for decarbonization efforts. Kobe Steel’s announcement is part of its new three-year management plan, which aims to make decisions on a 300 billion yen ($1.9 billion) investment over the next three years to reduce emissions from its steel and power generation operations.
While the actual spending will not be made until after March 2027, Kobe Steel is taking steps to move towards a more sustainable future. The company also plans to achieve a 20% ammonia co-firing with coal in its Kobe coal-fired power station units by 2030, as part of its decarbonization strategy.
The potential shift to an electric arc furnace represents a significant technological and operational change for Kobe Steel, as the company looks to transition away from traditional blast furnace steelmaking towards more environmentally friendly production methods.
This move aligns with the global steel industry’s efforts to reduce its carbon footprint and contribute to the fight against climate change. As the industry continues to evolve, Kobe Steel’s exploration of new technologies and approaches could serve as a model for other steel producers seeking to enhance their sustainability.