Nippon Steel’s CCS implementation
efforts and challenges
to achieve carbon neutrality

Nippon Steel Corporation
February 8, 2024

2Carbon Neutral Vision 2050
Released in March 2021

<Aim to reduce CO2 emissions by 30% by 2030 and achieve carbon neutrality by 2050>

Our 2030 target is ambitious compared to those of our global peers, and is feasiblyaligned with the Japanese government’s plan
Provision of high‐performance steel
products and solutions that contribute toreducing CO2 emissions in society
Reduce CO2 emissions at
the time of production andprocessing by customers

Reduce CO2 emissions at thetime of use of our products
by end customers

Decarbonization of steelmaking
process for providing carbon
neutral steel
Reduce CO2 emissions incustomers’ supply chains

By providing high‐performance steel products and solutions, and by decarbonizing steelmaking
process ahead of other countries, we are determined to provide carbon neutral steel to our customers(including approximately 6,000 companies in Japan) and support their international competitiveness.
From September 2023, we will launch sales of NSCarbolex® Neutral, a steel product that is certified asreducing CO2 emissions by a third‐party organization.

© 2024 NIPPON STEEL CORPORATION All Rights Reserved.

Steel making process using the blast furnace method3

The blast furnace method is currently the only steel production processthat mass-produces high-grade steel from iron ore.
Iron Ore(Oxide)（Fe+O）The production of 1 ton of steel produces
approximately 2 ton of CO2.
Basic Oxygen Furnace

Sintering Plant
Blast Furnace

Coal（Ｃ）

Coke Plant

Molten iron（Fe）
Reducing iron ore（Separate Oxygen)

ContinuousCastingHigh grade steel making(Consistent control of production conditions）© 2024 NIPPON STEEL CORPORATION All Rights Reserved.

4Carbon Neutral Process
Scrap
INPUTSteelmaking

3) Hydrogen direct
reduction of iron(shaft furnace etc.)
1) Hydrogen
injection into BF(Super-COURSE50)

Directly
reduced iron2) High-grade steel
production in large
size EAF

BOF

equally productive as BF

Rollingmill

CO2
OUTPUT

Directly
reduced iron

EAF route

PROCESSBF and BOF route

Ironmaking

Stable supply Stable supply 3 breakthrough technologies
Nippon Steel challengesof greenof green
Low-qualityiron orehydrogen atpower at
3 external conditions for which
reasonablereasonable
Gov’t support is required
Coking coal
costcost

CO2

Minimum amount of coking
coal is necessary to securestability in the operation, andthus CCUS is also necessary.

CCUS *Chemicals, biofixing,
underground storage* Carbon Capture, Utilization, and Storage© 2024 NIPPON STEEL CORPORATION All Rights Reserved.

Our roadmap of CO2 emissions reduction measures
CO2reduction
targetCarbonneutral-30%(vs FY2013)

Production of high-grade steelin large size EAFs
Practical implementation

Dev’t
Dev’t

PracticalimplementationActual demonstration test(Kimitsu)

COURSE50

BF and BOF route

Practical implementation

Dev’t

Actualdemonstration
test

SuperCOURSE50

Lower CO2 emission in existing processes (advance in existing technology,expanded use of scraps and waste plastics, etc.)

Lower carbon power (higher-efficiency power generation facilities, use of low carbon fuelin coal-powered generation, etc.)

BF hydrogen reduction

2008〜

100% hydrogen direct reduction

Ultra innovative technology
development

EAF route

Practicalimplementation

Dev’t

5

Building of an efficient production system

Dev’t

CCS (underground storage)/CCU (re-use)

Externalconditions(centralized production at an integrated steel mill, etc.) (some transfers from BFs to EAFs, etc.)© 2024 NIPPON STEEL CORPORATION All Rights Reserved.

Our CO2 decarbonization scenario by CCS

6‐ Aiming to implement 1‐3 million t‐CO2/year of CCS in 2030 through advanced CCS projects.
‐ Furthermore, in order to achieve carbon neutrality in 2050, we aim to expand CCS by 20
to 30 million t‐CO2/year.

Minimum amount of coking
coal is necessary to securestability in the operation,and thus CCUS is alsonecessary.

© 2024 NIPPON STEEL CORPORATION All Rights Reserved.

7CCS Implementation Approach
Target‐ 1 ～ 3 Mt‐CO2/year （by 2030）‐ 20～30Mt‐CO2/year （by 2050）

Implementation Concept‐ Actively participate in national projects under government policy‐ Storage at several sites abroad in addition to domestic sites

Approach‐ Through the "Advanced CCS Project" by METI/JOGMEC, the first
implementation in 2030 and expanded implementation thereafter© 2024 NIPPON STEEL CORPORATION All Rights Reserved.

8Participated in advanced CCS projects
Participated in three leading joint projects coordinated by JOGMEC, “Survey on theImplementation of Advanced CCS Projects” (released Aug. 2nd and 3rd ,2023)

 Nippon Steel and other companies have been commissioned with other companies to conduct a feasibility study on
the three advanced CCs project in 2023 coordinated by JOGMEC, Japan Organization for Metals and Energy Security
 Promote with each company the development of external conditions such as securing storage sites, developmentof storage infrastructure, and development of laws and regulations.
 Nippon Steel is proactively involved in studies related to CO2 separation and capture, liquefaction, and shipping
terminals, based on location restrictions of each steelworks.

Storage
Mt/Y /Y
Kt‐CO
22,000200

Taiheiyo Cement Corporation
Mitsubishi Heavy Industries, Ltd.
ITOCHU Oil Exploration Co., Ltd.

INPEX Corporation
Taisei Corporation

Characteristics
 Ship transportation of liquefied
CO2
 Storage in the aquifer in theTohoku region off the Sea ofJapan Transporting CO2 throughpipelines
1001,000
 Storing the CO2 in offshore
Kanto Natural Gas Development
coastal zones of the Tokyo
Co., Ltd.
metropolitan area
 Collect and liquefy CO2emissions from multiple
industries in the Ise Bay/Chubu
Mitsubishi Corp.
region2,000200
Nippon Steel Transport and storage toExxonMobil Asia Pacific Pte.Ltd.
offshore depleted oil and gas
field oversea

Assumed Assumed
emissions storage
areaarea

CCS around Tohoku area facing
sea of Japan
Capture from domestic
wide‐area emission sources

CCS around capital
city area

INPEX Corporation
Nippon SteelCCS aroundcapital city area

Overseas

CCS around areas
facing Pacific
OceanCompany
ITOCHU Corporation
Nippon Steel

Domestic

CCS aroundTohoku areafacing sea ofJapan

Assumedemission
sources

CCS around areas
facing Pacific OceanTransport toOceania and store© 2024 NIPPON STEEL CORPORATION All Rights Reserved.

C‐flow in the integrated steelmaking process9‐ CO2 emissions from integrated steel works come from coal.
‐ The main sources of CO2 emissions from steel works are① Coke plants, ②Blast furnace hot stoves, ③ Power plants and ④Sintering plants.

© 2024 NIPPON STEEL CORPORATION All Rights Reserved.

CO2 emission sources in the integrated Steel Works

10‐ There are more than 100 exhaust gas sources in the integrated steel works.
‐ It is difficult to install CO2 capture and liquefaction facilities at each emission sources
because existing facilities exist around the CO2 emission sources.
5.3km①BF Hot stove

CO2 emission sources④PowerPlant②Coke Plant

3.3km③Sintering Plant© 2024 NIPPON STEEL CORPORATION All Rights Reserved.

（※1）

Major Sources of CO2 Emissions at Model Steel Works

11※1︓Integrated steel works with a pig iron output of 8 Mton/Yassuming major steel works in Japan‐ Blast furnace hot stoves have the highest CO2 concentration and considered the mostefficient source of CO2 capture.
‐ To achieve carbon neutrality in the future, it will also be necessary to capture CO2 fromsmall‐scale, low‐concentration emission sources such as Rolling and other furnaces.
Emission source

Production

CO2 Emissions Exhaust Gas Amount

Exhaust Gas Components

Nubmer ofexhaust gas（kt-s/year）（kt-CO2/year）

3（kNm /h）

CO2

H2O

N2O2

Otherssouce①Coke Plant

3,800

1,900

460

24%

5%

69%

2%

SOx, NOx, dust

10②BF Hot Stove

8,000

3,200

720

26%

4%

69%

2%

SOx, NOx, dust

2③Power Plant

−

8,100

4,580

12%

4%74%

9%

SOx, NOx, dust

〜4④Sintering Plant

11,700

1,800

2,420

4%

1%

78%

16%

SOx, NOx, dust

3−900

6008%

18%

71%

3%

SOx, NOx, dust

〜90

15,9008,780⑤Heat furnace,Rolling, etc

Total

These figures are part of the results of a project commissioned by NEDO, New Energy and Industrial Technology
Development Organization, and conducted by Nippon Steel Corporation.

© 2024 NIPPON STEEL CORPORATION All Rights Reserved.

CO2 capture and liquefaction in steel works

12〜currently being designed〜‐ CO2 capture by chemical absorption and deep‐cooling separation, will be employed.
‐ Nippon Steel is studying to introduce these technologies to steel works through theJOGMEC Advanced CCS Projects.

© 2024 NIPPON STEEL CORPORATION All Rights Reserved.

13Ⅰ)Challenges in implementing CO2 capture and liquefaction
1．Securing the installation Space- How to secure sufficient space for CO2 capture and liquefaction in the presenceof existing production equipment, piping, and other interferences
2．Improve energy efficiency/Reduce CO2 emissions/Ensure economic rationality- CO2 capture and liquefaction process consume large amounts of energy（especially the heating of the absorbent solution for CO2 desorption）.
- Developments are needed to increase efficiency and economy of the process.
3．Development for low concentration and small CO2 emission sources.
- Achieving carbon neutrality requires the capture of CO2 not only from largeemission sources but also from small emission sources.

© 2024 NIPPON STEEL CORPORATION All Rights Reserved.

14Ⅱ) Issues regarding overseas CCS
1．Arrangement on CO2 offset credit attribution- In implementing overseas CCS, international arrangements are needed toensure that the attribution of CO2 offset credits is clearly defined.
2．Regulatory arrangements in CCS- Arrangement on the responsibility of operators for the security and monitoringof stored CO2- Setting of storage standards in terms of CO2 concentration and the amountof impurities in CO2 that are reasonable from a technical, environmental andeconomic point of view.

© 2024 NIPPON STEEL CORPORATION All Rights Reserved.