February 15, 2021
Japan Iron and Steel Federation (JISF)
Basic Policy of the Japan steel industry on 2050 Carbon Neutrality aimed by theJapanese government
1. The Japanese steel industry supports Japan’s ambitious policy of achieving carbon
neutrality by 2050 and it will aggressively take on the challenge to realize zero-carbon
steel with the aim of contributing to the Japanese government policy. Our challenge
includes (1) contribution through our technologies and products and (2) initiatives toreduce CO2 emissions in steel production process (i.e., zero-carbon steel).
2. Realization of zero-carbon steel is an extremely difficult challenge and that is
unlikely to be realized in a straight line. Therefore, the Japanese steel industry will
explore multiple pathways to the challenge by employing every possible means
including, our actively ongoing efforts for the drastic reduction of CO2 emissions fromblast furnace through COURSE 50 and ferro coke technologies plus CCUS (carbon
capture, utilization, and storage), development of super innovative technologies such ashydrogen-based iron making, expanded use of scrap, recovery of low- to
medium-temperature waste heat, and use of biomass.
3. Challenges to develop super innovative technologies- To realize decarbonization in iron making process and zero-carbon steel, it isnecessary to endeavor to develop advanced technologies, such as CCUS, under a blast
furnace (reduction with carbon) method with an improved reduction ratio with hydrogen.
In addition, we need to spend additional huge costs to neutralize unavoidable remaining
CO2 emissions or implement the hydrogen-based iron making which does not generate
CO2. There is no other solution.
- Hydrogen-based iron making is an iron making process that is totally different fromthe existing blast furnace process which we have reached over several thousand years inhistory. The detail of hydrogen-based iron making is still unknown, and it is a major
hurdle for us. Some countries have just begun to develop such new technologies, thus
this is an extremely ambitious and challenging project.
- Furthermore, replacing the existing process with the new one at the stage of
implementation will require a huge amount of capital investment, resulting in large
capital and operating costs. But these additional costs are only for decarbonization andcontribute neither to improving the performance of steel nor to increasing productivityof the steel.
4. The following external conditions are required for the realization of zero-carbonsteel:- Low-cost and stable supply of large quantities of carbon-free hydrogen andcarbon-free electricity- Research and development of economically rational CCUS and its implementation insociety
5. We request the government to adopt the following policies to support the realizationof zero-carbon steel:- Strong and continuous national support by the Japanese government for medium- tolong-term technological development of extremely difficult hurdle, and establishment ofa national strategy for decarbonization, including the development of social
infrastructure for the stable supply of large quantities of carbon-free hydrogen andcarbon-free electricity at low cost and social implementation of CCUS in an
economically rational manner- Design and development of a promotion system and institutional design to encourage
the spirit of challenges in companies in the operation of the Green Innovation Fund- Financial support for the practical application and implementation of the results oftechnological development- Fostering public understanding that the realization of zero-carbon steel requires a large
amount of costs, including research and development, capital investment, andoperational costs as well as establishing a society as a whole to bear these costs- Ensuring equal footing where Japan's industries are not disadvantaged in international
competition—including an urgent resolution of electricity prices, which remain high byinternational standards- Introducing additional carbon pricing measures, such as carbon taxes and emissions
trading schemes, which take away resources for technological development and capital
investment, will hinder technological innovation and result in preventing the realizationof zero-carbon steel.