TOKYO – Japan’s largest steelmaker, Nippon Steel, will try to replace hydrogen furnaces with hydrogen technology while pursuing the goal of producing carbon-free steel, the President said. Eiji Hashimoto company to Nikkei. This is in line with Prime Minister Yoshihide Suga’s goal to cut greenhouse gas emissions to zero on a net basis by 2050 and with US President Joe Biden’s design of protecting the environment.
Hashimoto also stressed that government support will be crucial if Japan is to compete with the U.S. and China in 21st century steelmaking.
Q: The Japanese government has set a goal to cut greenhouse gas emissions to zero. Companies need to work carbon-free.
A: In line with the government ‘s aim, we are also aiming to reduce carbon dioxide emissions [CO2] put out in the iron-making process to net-zero by 2050. By March, we will be drawing up medium- and long-term management plans, looking forward to five and 10 years. As a pillar of the plans, we will introduce environmental measures to achieve net zero emissions.
Q: Major steelmakers use a lot of coal. Is it possible to achieve zero-zero CO2 emissions?
A: To significantly reduce emissions, we have no choice but to use hydrogen instead of coal. The existing method of making blast furnace iron uses carbon carbon to extract oxygen from iron ore. The gas generated in the process is almost entirely used as an energy source inside the iron mill. It is a very reasonable process, but the reaction between carbon and oxygen produces CO2.
The use of hydrogen to make iron is not yet practically used, and the method needs to be improved. Japan’s steelmaking industry was the first in the world to start researching the method. However, the industry has set a target of zero emissions before 2100 and has not upheld the idea that the economy and society as a whole are aiming for carbon neutrality. by 2050. In the future, it will be an option for our company to strengthen cooperation with JFE Steel and Kobe Steel.
Nippon steel mill in Chiba: The global steel industry is racing to commercialize hydrogen-tech steelworks. (Photo courtesy of the company)
Q: There are high hurdles ahead of that 2050 goal.
A: Development costs will be significant. If we use hydrogen, the temperature in a blast furnace will drop, making it difficult to melt the high temperature needed for an iron ore. We need to resolve issues like this. Hydrogen infrastructure development is another problem. The steel industry estimates that just under 7.5 million tonnes of hydrogen per year will be needed to replace hydrogen production in the country ‘s blast furnace production. At present, Japan uses only hundreds of tons of hydrogen per year. Infrastructure capable of delivering low-cost hydrogen at low cost cannot be developed without government assistance.
Q: Europe and China also plan to invest heavily in environmental protections, including the use of hydrogen. Can Japan compete?
A: It is impossible only with the efforts of private companies. In the US, Mr Biden has announced a $ 2 trillion investment in the environmental sector. In China, too, the government will provide strong support.
East Asia accounts for three-quarters of global steel production using explosive engines. Development competition for zero-emission emissions is heating up among Japan, China and South Korea. If we don’t “carbonless steel” [producing steel without emitting CO2], we do not get the understanding of society. If China moves ahead of us, we will not be able to take the lead. Therefore, government support is essential for the development of hydrogen ironwork and for capital investment.
Q: It also seems necessary to increase the use of electric furnaces that melt iron scrap by heat generated by electricity, without the use of coal.
A: Electric ovens are not used to reduce CO2 emissions. Many blast furnaces were built more than 50 years ago, and it is unreasonable to rebuild them with a large investment of money. If we can establish technology that allows us to use electric furnaces, which require smaller initial investments, and to produce a high-performance steel plate and such sheet using blower furnaces, we will have more options when which we will expand overseas activity. This also reduces CO2 emissions.
Q: China, which has survived the coronavirus revolution, is increasing its steel production again.
A: It has become clearer that trends in China, which make up about 60% of global iron production, are having a definite impact on raw materials and market conditions. However, the continued increase may not lead to over-generation and over-export as seen previously. This is due to the fact that China’s domestic demand is coming to an end sooner or later, and a shift to domestic production is taking place rapidly in India and Southeast Asia, which has been are the main destinations for Chinese exports.
We aim to increase our global crude steel production capacity from 70 million tonnes per annum to current 100 million tonnes by acquiring iron mills overseas. Chinese companies are candidates for construction. In China, after domestic demand comes to an end, the shattering, reorganization and integration of iron mills can go further. As foreign capital regulations are gradually being reduced, we should have more opportunities to partner with influential companies.