RITE Symposium on IPCC AR6 WG3Steel Industry’s Vision and Challenge
towards Carbon Neutrality
May 19, 2022
Hiroyuki Tezuka

Fellow, JFE Steel Corporation

Energy Technology Committee, Chair,
The Japan Iron and Steel Federation© 2022 The Japan Iron & Steel Federation, All Rights Reserved.

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IPCC AR6 WG3SPM C.5 Industry

 Net-zero CO2 emissions from the industrial sector are challenging butpossible. ・・・Progressing towards net zero GHG emissions fromindustry will be enabled by the adoption of new production processes
using low and zero GHG electricity, hydrogen, fuels, and carbon
management.
 The use of steel, cement, plastics, and other materials is increasing
globally, and in most regions. There are many sustainable options fordemand management, materials efficiency, and circular material flowsthat can contribute to reduced emissions
 many low- to zero- GHG intensity production processes are at the pilot tonear-commercial and in some cases commercial stage but not yet
established industrial practice. Introducing new sustainable basic
materials production processes could increase production costs but,given the small fraction of consumer cost based on materials, areexpected to translate into minimal cost increases for final consumers.
 Hydrogen direct reduction for primary steelmaking is near-commercial insome regions.
 Action to reduce industry sector emissions may change the location of
GHG intensive industries and the organisation of value chains. Regionswith abundant low GHG energy and feedstocks have the potential to
become exporters of hydrogen-based chemicals and materials processedusing low-carbon electricity and hydrogen. Such reallocation will haveglobal distributional effects on employment and economic structure.

CO2 is inevitably produced in the reduction process
Remove oxygen from iron ore (reduction)
Carbon (C) removes the oxygen (O)(reduction) in the iron ore ascarbon is more reactive than iron (Fe)Iron ore is reduced to iron, and carbon is combined with oxygento form carbon dioxide.
CarbonCarbon dioxide

Iron

Iron ores© 2022 The Japan Iron & Steel Federation, All Rights Reserved.

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Challenges toward carbon neutrality in the steel industry
Means

Challenges

1. Iron ore reduced by carbon (current process)
Fe2O3 + C ＋O2 ➡ Fe + CO2 + Heating （Exothermic）…CO2 emission
Measures against generated CO2

CO2 emissions are separated and captured for(1) Utilization and geological storage (CCUS).

challenges…Storage and hydrogen(2) Biomass use (use of wood and other materials…Planting, securing required amount(3) Waste plastic use…Impurities, securing required amount(4) Natural gas use (Direct reduction, DRI)

…Productivity, heatingthat absorb CO2, resulting in net zero)2. Iron ore reduction by hydrogen
Fe2O3 + H2 + heating ➡ Fe + H2O

Large amount ofhydrogen（Endothermic）… preheating

3. Use of scrap (reduced iron)
We need to overcome lots of challenges to achieve carbon neutrality.
© 2022 The Japan Iron & Steel Federation, All Rights Reserved.

4Outlook for Global Steel Production and Accumulation
 Demand for crude steel will increase Obsolete scrap will also increase, but not enough to meet steel demand Constant supply of pig iron is essential for supply of high‐performance steel
products

2.68 billion t
1.62 billion t
1.22 billion t

68.2 billion t
1.55 billion t
1.40 billion t

29.4 billion t
0.56 billion t
2015© 2022 The Japan Iron & Steel Federation, All Rights Reserved.

5COURSE50︓hydrogen reduction ironmaking technology (NEDO, JISF)
On the condition that the existing infrastructure of the integrated steelworks will be utilized to the maximum
extent possible,• Reduction of carbon and increase of hydrogen during iron ore reduction (using coke oven gas with highhydrogen content)• Separation and recovery of CO2 from blast furnace exhaust gas (using unused waste heat from the steelmill)
These measures will enable the reduction of CO2 emissions from steel mills by 30%.

Fe2O3 (iron ore)
+ C (coke)

CO2+ H2O

CO2 capture by CCS（20% CO2 reduction）
CO2>99%CO2 〜
20%

Hydrogen gas
CO2recovery by CO2separation from（10% CO2 reduction）absorbent liquid absorbent liquid

Fe (iron)
BF

Storage
This result was obtained as a result of the "CO2 Ultimate Reduction System for Cool Earth 50 (COURSE50) Project" commissioned by the New
Energy and Industrial Technology Development Organization (NEDO) (Japan Iron and Steel Federation COURSE50).

© 2022 The Japan Iron & Steel Federation, All Rights Reserved.

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CO₂ Emissions Reduction Using Carbon‐recycling Blast Furnace
 CO₂ generated from blast furnace is converted to methane and used
repeatedly as reducing material.
 CO₂ emissions are reduced by replacing coke with carbon‐neutral
methane as the reducing material.
Blast furnace gas

CokeHeatingBurner*

CO2 CO H2Effective utilization in CCUS

Carbonrecycling

メタネーション
Methanation
H2O2CH4H2O

Carbon‐neutral reductant*Useof circulation gas※循環ガス使用による

Methanation reaction
CO2 + 4H2 → CH4 + 2H2O

CO₂ reduction target of 30% in blast furnace, aiming at carbon neutrality through CCUS utilization
Source︓JFE Group Environmental Vision 2050
© 2022 The Japan Iron & Steel Federation, All Rights Reserved.

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100% hydrogen use by the direct reduction
1. Hydrogen reduction is endothermic so hydrogen preheating to be required.
2. Available iron ore is limited (less powdering and less sticking ore)
3. The re-melting and slag separation are required in the EAF© 2022 The Japan Iron & Steel Federation, All Rights Reserved.

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IPCC AR6 WG3 E5. Investment and Finance Tracked financial flows fall short of the levels needed to achieve
mitigation goals across all sectors and regions.
 Average annual modelled investment requirements for 2020 to2030 in scenarios that limit warming to 2°C or 1.5°C are a factorof three to six greater than current levels, In modelled pathways, regional investments are projected tooccur when and where they are most cost-effective to limit
global warming. The model quantifications help to identify highpriority areas for cost-effective investments, but do not provide
any indication on who would finance the regional investments.
 There is sufficient global capital and liquidity to close global
investment gaps, given the size of the global financial system,
but there are barriers to redirect capital to climate action bothwithin and outside the global financial sector。

Too rush deployment may cause cost increase/inflation,then may hinder financing for investment.

The current hydrogen strategy
does not satisfy the amount and cost requirement.
Hydrogen cost and supply target in Green Growth Strategy
Through Achieving Carbon Neutrality in 2050
(USD/kg‐H2)
7.0

Green Growth Strategy Through Achieving Carbon Neutrality in 2050 , METI, 25th Jan 2020
A challenge towards zero-carbon steel, The Japan Iron and Steel Federation

6.0

Cost of hydrogen

5.0$ Reqrired

1.0$ TargetPower generation
ChemicalAutomobile
Steel

Domestic hydrogen
supply target

4.0
3.0
2.00
2020

JISF long–term vision for combating global warming

2025

2030

2035

Domestic hydrogen supply target
3 million tons of hydrogen/year(2030)
clean hydrogen
0.42 million tons of hydrogen/year(2030)

2040

2045

2050

20 yen8 yen
SteelHydrogen required to convert all
pig iron production in Japanto hydrogen reduction.
(75 million tons/year)

About 7 million tons-H2 / year (2050)

Current H2 cost target is still too expensive Hydrogen Steelmaking© 2022 The Japan Iron & Steel Federation, All Rights Reserved.

10Prerequisites to achieve carbon‐neutral steel
Costs of Achieving Carbon‐neutral Steel Massive research and development costs→Maximum use of government R&D support, such as Green Innovation Fund

 Massive investment in equipment→Total capital investment in steel works will exceed R&D costs

 Stable supply of inexpensive, high‐volume green hydrogen andelectricity, and development of related infrastructure (Ensure theglobal competitiveness of industrial power price) Even with cheap hydrogen, production costs will significantlyincrease**Assuming 20 yen per Nm3 of hydrogen

Significant cost increases are inevitable and there are limits to the efforts ofindividual companies. Government support and cooperation with society willbe essential, including for the creation of a mechanism through which society
would bear the increased costs.
Source︓JFE Group Environmental Vision 2050

Needs sufficient Financing & sustained/assured Market Demand© 2022 The Japan Iron & Steel Federation, All Rights Reserved.

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END

Thank you for your attention© 2022 The Japan Iron & Steel Federation, All Rights Reserved.

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JISF’s CO2 reduction scenario

Carbon‐recycling blast furnace

Multiple pathways: all options need to taken.
© 2022 The Japan Iron & Steel Federation, All Rights Reserved.

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