Report of “JISF’s Carbon Neutrality Action Plan”

February 2024
The Japan Iron and Steel Federation© The Japan Iron & Steel Federation, All Rights Reserved.

1

IndexOverview of JISF’s Carbon Neutrality Action Plan ・・・・・P3
Eco Process

・・・・・P7

Eco Product・・・・・P23

Eco Solution

・・・・・P29

Innovative technology development・・・・・P40

Activities during the transition period

・・・・・P49

Other Activities

・・・・・P53

Reference・・・・・P56© The Japan Iron & Steel Federation, All Rights Reserved.

2

Overview of JISF’s Carbon Neutrality Action Plan

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

3

Basic Policy
 JISF positioned global warming as the most important challenges in the steel industry and, in February 2021, stated that “TheJapanese steel industry supports Japan’s ambitious policy of achieving carbon neutrality by 2050 and it will aggressively takeon the challenge to realize carbon neutrality with the aim of contributing to the Japanese government policy.” In order to achieve carbon neutrality ahead of other countries, the Commitment to a Low Carbon Society was amended to the“Carbon Neutrality Action Plan” and the Phase II target (2030 target) was revised.
 In setting the new 2030 target for the Eco Process, JISF decided to increase the ambition level by taking into account not only
the maximum introduction of BAT based on energy efficiency that is already among the highest in the world, but also newperspectives such as the expansion of scrap use.
 To achieve carbon neutrality throughout the world, it is critical to decarbonize the steel production process in the Asian regions,where steel production is expected to expand in the future. JISF will develop Eco Solution activities for technologies transfer
and dissemination to these regions, which includes creating systems for appropriate technologies introduction.
 Regarding GHG emission reduction at the product use stage by Eco Product, in particular, high-performance steel plays amajor role in the promotion of offshore wind power and electrification of automobiles, which are positioned as 14 fields in thegovernment’s Green Growth Strategy. In addition to the conventional quantitative evaluation of the five major types of highperformance steel, it made such contributions visible. This will enable the Japanese initiative to accelerate practical global
warming measures from a global perspective, without being restricted by national borders or industry sectors.
 In innovative technology development, JISF will take on the challenges of direct hydrogen reduction and high-performancesteel production technology using electric arc furnaces under the Green Innovation Fund as well as COURSE 50 and Ferrocoke.

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

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Overview
Eco Process20３0←2013

Eco ProductEco Solution

2050←

Innovative technology
development

Cut energy-related CO2 emissions (total volume) in FY2030 by 30% vs.
FY2013 by adopting BAT to promote energy conservation, utilizing waste
plastics, adopting innovative technologies that are currently underdevelopment and scheduled to be into use around 2030, and utilizing raw fuelwith less CO2 emissions.
Supplied domestically and internationally, high-performance steel will contribute to
CO2 reduction when used in the final product. The reduction potential in 2030 isestimated to be approximately 42 million tons-CO2 for the 5 steel products thatare quantitatively evaluated for their contribution toward emissions reduction
Contribution towards CO2 emission reduction worldwide by transferring theJapanese steel industry’s advanced energy-saving technologies and facilities tothe world’s steel industry. Estimated contribution on CO2 emission reduction is
80 million tons in 2030.
JISF will contribute towards Carbon Neutrality by boldly embarking on the developmentof technologies in the following 4 areas:- Hydrogen reduction technology using in-house hydrogen- Low-carbon technology utilizing CO2 contained in external hydrogen or blast furnace exhaust gas- Direct hydrogen reduction technology- Impurity removal technology for electric furnace using direct reduced iron

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

5

Certification of International standard ISO 50001• On February 20, 2014, JISF became the first industry association in the world to receive ISO 50001 certification(energy management system) owing to its actions to combat global warming within the Voluntary Action
Plan/Commitment to a Low Carbon Society activities for conserving energy. Commitment to a Low Carbon
Society was amended to the Carbon Neutrality Action Plan, but JISF is steadily promoting Carbon Neutrality
Action Plan while maintaining the certification in 2023.

Initial registration:
1st extension:
2nd extension:
Review(Transfer):
3nd extension:

February 20, 2014
February 2, 2017
January 23, 2020
May 20,2021
February 20, 2023

ISO 50001（Energy management system）
An international standard for visualizing an organization's energy performance and improving it to saveenergy/costs, adopting the PDCA (Plan-Do-Check-Act) cycle concept.
© The Japan Iron & Steel Federation, All Rights Reserved.

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

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FY2022 Results of JISF’s Commitment（Total of the participated companies）

Comparison to
FY2013Comparison to
FY2021150.23Mt-CO2▲44.20Mt（▲22.7％）▲12.77Mt（▲7.8％）

FY2030 target （30% reduction compared to FY2013）
achievement rate

75.8％

ー

ー

Energy consumption

1,815PJ▲482PJ（▲21.0％）▲143PJ（▲7.3％）

Crude steel production

83.50Mt▲24.96Mt（▲23.0％）▲8.15Mt（▲8.9％）FY2022 energy-related CO2 emissions (total volume)(Using electricity factor with relevant fiscal year credit）

Reference: Japanese steel industry total (including companies not participating the Carbon Neutrality Action Plan)
Energy-related CO2 emissions in FY2022 （total） 156.76Mt-CO2（down 42.10Mt from FY２０１３（▲21.2%）, down 10.30Mt from FY2021（▲6.2％） ）※1
Energy consumption
1,913PJ（down 457PJ from FY２０１３（▲19.3％）, down 136PJ from FY2021（▲6.6％））
Crude steel production
87.85Mt（down 23.68Mt from FY２０１３（▲21.2％）, down 7.79Mt from FY2021（▲8.1％））※1 Using electricity coefficient with said FY credit）※2 Energy consumption and CO2 emissions for the Japanese steel industry are estimates based on statistics for the use of petroleum and other energy sources.
© The Japan Iron & Steel Federation, All Rights
Reserved.

8

Annual Trend of Energy Consumption and CO2 Emissions
Unit Energy Consumption(FY1990 level=100)

Total Energy Consumption

Crude steel(million ton)

(FY)

(FY)

Mt-CO2

Unit CO2 Emissions(FY1990 level=100)

CO2 Emissions from Fuel Combustion(Incorporate improvement by emission credit)

Crude steel(million ton)

(Incorporate improvement by emission credit)

(FY)
(FY)
*PJ is a petajoule (1015 joules). One joule is 0.23889 calories. 1PJ is equivalent to about 2.58 million kiloliters of crude oil.

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

9

(Ref) Evaluation Indicator used from FY2021•••

As the Phase I period of the Carbon Neutral Action Plan ended in FY2020 and shifted to the Phase II period (FY2021-FY2030), thereference year for the Phase II target was reviewed from FY2005 to FY2013, and the management indicator was revised from BAUbased emissions (evaluation method using the baseline emissions calculated at the technology level as of 2005 as an indicator) to
CO2 emissions (total amount).
Evaluation using BAU emissions as management indicator was effective within a certain range of crude steel production. However,the FY2020 performance indicated that BAU emissions cannot function adequately as the indicator in case of discontinuous operating
conditions due to the COVID-19 pandemic or structural changes in production levels. Therefore, we have replaced CO2 emissions(total amount) as the management indicator.
In accumulation of energy saving measures such as the maximum introduction of BATs as an indicator to grasp the amount of energy
saving, efficiency improvement of coke ovens* 1 and power demand facilities*2 were reviewed in line with actual conditions.
*1 In the past, the number of next-generation coke ovens installed was used as an indicator for improving coke oven efficiency. However, given that renewal to conventional ovens
are prevalent, we decided to capture the efficiency of coke ovens as a whole by using changes in the heat consumption using dry distillation as an indicator.
*2 As it has become difficult to capture energy saving efforts due to factors such as increased energy consumption (worsening of power consumption rate) caused by strengthened
environmental measures and other factors, we decided to identify facilities with large power consumption, such as oxygen plants and blowers, for which power consumption rate
can be determined on a facility-by-facility basis, and to capture changes in the total power consumption rate of these facilities.

Phase I period (FY2013-FY2020)

Phase II period (FY2021-FY2030)

Reference year

FY2005FY2013

Management Indicator

CO2 emissions performance vs BAU

CO2 emissions (total amount)

Assessment of energy saving
measures(changes)

Efficiency improvement of coke ovens:
Number of next-generation coke ovens installed

Efficiency improvement of coke ovens:
Heat consumption per ton of coke oven

Efficiency improvement of power demand facilities:
Electricity consumption intensity of crude steel

Efficiency improvement of major power demand facilities:
Electricity consumption intensity of oxygen plants, blowers, etc.

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

10

Components of Changes in FY2022 CO2 Emissions
CO2 emissions in FY2022 were 150.23 million mt-CO2, a decrease of 44.20 million mt-CO2 from FY2013.
Factors contributing to this result include progress in energy and CO2 saving (e.g., improved efficiency of coke ovens and power generation
facilities, and increased energy-saving equipment such as CDQ systems), utilization of cold iron sources (scrap), improvement on factor ofpurchased electricity, and production fluctuations.
（Unit：10,000t-CO2）*2

Improvement on
factor of※1purchased
electricity*1

production
Actual emission
fluctuations
FY22
※2
*2
CO2 emissions from electricity purchased externally by the participating companies of the JISF Carbon Neutral Action Plan were evaluated using the CO2
emission coefficient published by the Electric Power Council for a Low Carbon Society. CO2 reductions were calculated from the difference in coefficients
between the reference year (2013) and FY2022.
© The Japan Iron & Steel Federation, All Rights
The production fluctuations, etc. include energy-saving factors such as operation efforts and the effect of fixed energy due to production fluctuations
Reserved.
(consumption rate fluctuations).
FY2013CO2emissions*1

FY 2013 vs. ▲44.20 million t-CO2 (75.8% progress rate)

Energy saving/
CO2 emission
reduction

Waste plastic

Others(e.g. cold ironsources )Target volume

11

FY 2022 Performance Evaluation（vs FY2013）
Expected

FY2022
Performance

Initiatives

FY2030
Performance（Mt-CO2）（Mt-CO2）▲93※1

1.Promote energy conservation

Approx. •▲２７０

Improving efficiency of coke ovens and power generating facilities;
reinforcement of energy-saving facilities; improving efficiency of powerconsuming facilities; making EAF process energy efficient+11

2.Expand chemical recycling of waste plastics

Remarks

Approx.

•The amount of waste plastic collected in FY2022
increased by 30,000 tons compared to FY2013.

Approx. •Promotion of utilization of cold iron sources and heating furnace fuelconversion (from heavy oil, etc. to city gas).

▲２１０

0

3.Adopt innovative technologies

All member companies continued their efforts to promote energy saving by
sequentially upgrading their coke ovens, which had increased CO2
emissions due to age deterioration and the impact of the Great East Japan
Earthquake.

Approx.

▲２６０

COURSE50, Ferro coke▲404※2

4.Other▲８５０

Using raw material and fuel with less CO2 emissions, etc.

5.Improve CO2 emission factor of purchased electricity▲285

6.Production volume change, etc▲3,649Approx. •▲８００
Approx.

▲３,４００Total▲4,420Approx.▲5,790（22.7％ reduction）（30％reduction）•

Calculated using the 2013 coefficient (0.567 kg-CO2/kWh) and the 2022
coefficient (0.436 kg-CO2/kWh).

The production fluctuations includes energy-saving
factors such as operation efforts other than thosequantified in Section 1, as well as fixed energy due to
production fluctuations (consumption rate fluctuations).

© to
The
Japan 300Mt-CO2
Iron & Steel Federation,
Allby
Rights※1 In the PhaseⅠ compared to FY 2005, we achieved
reducein FY 2020
promoting the energy saving.
12※2 Breakdown of 404Mt-CO2 is 1) 56Mt-CO2 in BOF process from theReserved.
expansion of scrap use, 2) 342Mt-CO2 in EAF from expansion of

Discussions on FY2022 Performance• When analyzing factors contributing to emissions reduction in past years, contribution of those items whose energy-saving effects could be quantified
was identified each year, and the contribution of other measures whose effects could not be quantified such as small efforts to improve operations
were included in “production fluctuations, etc.”• On the other hand, crude steel production in FY2022 declined by 8.9% from the previous year and 23.0% compared to FY2013. In process industries
such as the steel industry, specific energy consumption and CO2 emission intensity tend to worsen when production is declining. This means that the“production fluctuations, etc.” for FY2022 included the positive effects of efforts to improve operations, decrease of CO2 emissions due to production
decline, and also increase of CO2 emissions due to the worsening of CO2 emission intensity.
• We tried to quantify, to a certain extent, the impact of the worsening of CO2 emission intensity due to production decline. Specifically speaking,quantification was performed based on performance trends of the previous years*1 regardless of the individual circumstances of the companies
participating in JISF’s Carbon Neutrality Action Plan. As a result, it was estimated that the impact of worsened emission intensity attributable toproduction decline in FY2022 was an increase in CO2 emissions of 7.1 Mt-CO2*2.
※1 Business-as-usual (BAU) emissions (calculated by deducting the changes in CO2 emissions achieved by implementation of Phase II reduction measures from the CO2 emissions
results for FY2013-2022) and BAU CO2 emission intensity were obtained to conduct regression analysis between the emission intensity and crude steel production.
※2 The worsening of CO2 emission intensity was assessed as the difference in emission intensity obtained by assigning the total crude steel production of the participating companies for
FY2022 and FY 2013 (83.50 Mt and 106.50 Mt respectively) to the regression equation obtained (1.89-1.80＝0.09 t-CO2/t-crude steel). Crude steel production for FY2022 (83.50 Mt)
was multiplied to this value to convert to the total amount.

(Reference) Regression Analysis of CO2 Emission Intensity and Crude Steel Production
CO2 emission intensity (t-CO2/t-crude steel)

CO2 emission intensity after deducting changes in emissions achievedby implementation of FY2013-2022 reduction measures
Regression analysis

Regression equation: y = 0.330/x + 1.494
Coefficient of multiple determination R2 = 0.884© The Japan Iron & Steel Federation, All Rights
Reserved.
Crude steel production output (100 Mt)

13

Reference: Factors Contributing to Worsening of Specific Energy Consumption during
Production Decline
1. Processing facility designed for full-time and rated output operation
Most integrated iron and steel manufacturing plants, especially blast furnace and coke oven plants, are based on the assumption of
full-time and rated output operation.
 Blast furnaces are designed for around-the-clock operation 365 days a year. They achieve maximum efficiency and productivity
when operated at a rate commensurate with the furnace size. The energy efficiency decreases when operated to produce asmaller amount than optimal for the furnace size.
 Coke ovens are sometimes operated at longer cycle times (longer-than-usual carbonization time) when reducing production.
Specific energy consumption worsens under such operating conditions because the heat necessary to maintain the
carbonization chamber temperature increases in proportion to time.
 Energy recovery equipment such as TRT and CDQ in blast furnace and coke oven plants are also designed to achieve
maximum efficiency during rated output operation. Production decline therefore leads to worsening of energy efficiency because
less efficient energy recovery translates to increase in coal consumption for in-house power generation or increase in powerpurchase to make up for the decrease in energy recovery.
 Environmental protection equipment (such as emission gas scrubbers and wastewater treatment pumps) and security
equipment are also designed for full-time and rated output operation. Some of such equipment can accommodate electrification
and are compatible with inverters, but many still do not have the ability to adjust operation according to varying production output,
meaning that production decline leads to reduced energy efficiency.
2. Equipment that need to be preheated or kept warm
Some equipment, such as the heating furnace used in the rolling process, need to use certain amount of energy regardless of the
production volume for preheating before starting up from a cold state or for keeping the equipment warm when slowing down
production speed. The lower the production volume, the more energy required for preheating and keeping the equipment warm, andaccordingly, the lower the energy efficiency per unit production.
© The Japan Iron & Steel Federation, All Rights
Reserved.

14

Specific initiative -Coke Oven Updates••

JISF member companies have started replacing aging bricks in coke ovens, which is one cause of the increase in CO 2
emissions. Improvements at 13 coke ovens were already completed after Phase I (FY 2013) of the Commitment to a Low
Carbon Society.
Although work has started, due to the limited availability of workers (coke oven construction specialists) and the high cost of
updates (tens of billions of yen for each oven), it is still under development.

JISF Member Company
Coke Oven
Update Plans(Company and newspaper
announcements as of Dec 2022)

Expected Updating Projects (3 ovens)Completed Updating Projects (13 ovens)
Year

Steel works

Cost

Year

Steel works

Cost

FY2015

JFE Steel, West Japan Works, Fukuyama

About ¥45 billion

Nippon Steel, Kyushu Works, Oita Area

About ¥50 billion

Nippon Steel, East Nippon Works, Kimitsu
Area

About ¥29 billion

FY2013

JFE Steel, West Japan Works, Kurashiki

About ¥15 billion

FY2015

JFE Steel, West Japan Works, Kurashiki

About ¥20 billion

FY2016

Nippon Steel, East Nippon Works, Kashima Area

About ¥18 billion

JFE Steel, East Japan Works, Chiba

FY2016-

Nippon Steel, East Nippon Works, Kimitsu Area

About ¥29 billion

FY2017

JFE Steel, West Japan Works, Kurashiki

About ¥18.4 billion

FY2018

Nippon Steel, East Nippon Works, Kashima Area

About ¥31 billion

Heat consumption per ton of coke
(The index is set at 100 for FY 2005.)
Three coke ovens in eastern JapanAll coke ovens in operation

JFE Steel, East Japan Works, Chiba

FY2019FY2021-

Nippon Steel, East Nippon Works, Kimitsu Area

About ¥33 billion

Nippon Steel, North Nippon Works, Muroran Area

About ¥13 billion

JFE Steel, West Japan, Fukuyama Works

About ¥13.5 billion

JFE Steel, West Japan Works, Fukuyama

About ¥13.5 billion

Nippon Steel, Nagoya Works

About ¥57 billion

Coke ovens other than those affected by theGreat East Japan Earthquake© The Japan Iron & Steel Federation, All Rights Reserved.

15

Specific initiative –Higher efficiency of power plants/ Sharing the Best Practice
Initiatives for sharing the Best Practices in the steel industry

Higher efficiency of power plants
Kobe
Steel Kakogawa Station
No. 1
神戸製鋼所加古川発電所
１号機
Gas
turbine combined cycle unit (2011)
ｶﾞｽﾀｰﾋﾞﾝｺﾝﾊﾞｲﾝﾄﾞｻｲｸﾙ（ＧＴＣＣ）（2011年）

BF-BOF company

Energy technology committee expansion committee

Kimitsu
Joint Thermal ６号機
Station No. 6
君津共同火力発電所
Advanced
combined cycle unit (2012)
ｱﾄﾞﾊﾞﾝｽﾄｺﾝﾊﾞｲﾝﾄﾞｻｲｸﾙ（ＡＣＣ）（2012年）Best practice

Kashima
Joint Thermal５号機
Station No. 5
鹿島共同火力発電所
Advanced
combined cycle unit (2013)
ｱﾄﾞﾊﾞﾝｽﾄｺﾝﾊﾞｲﾝﾄﾞｻｲｸﾙ（ＡＣＣ）（2013年）
Wakayama
Joint Thermal
Station No. 1
和歌山共同火力発電所
１号機
Advanced
combined cycle unit (2014)
ｱﾄﾞﾊﾞﾝｽﾄｺﾝﾊﾞｲﾝﾄﾞｻｲｸﾙ（ＡＣＣ）（2014年）Best practice

Oita
Joint Thermal Station
No. 3
大分共同火力発電所
３号機
Advanced
combined cycle unit (2015)
ｱﾄﾞﾊﾞﾝｽﾄｺﾝﾊﾞｲﾝﾄﾞｻｲｸﾙ（ＡＣＣ）（2015年）
Kobe
Steel Kakogawa Station
No. 2
神戸製鋼所加古川発電所
２号機
Gas
turbine combined cycle unit (2015)
ｶﾞｽﾀｰﾋﾞﾝｺﾝﾊﾞｲﾝﾄﾞｻｲｸﾙ（ＧＴＣＣ）（2015年）
JFE
Steel Chiba Station
West-No. 4
JFEｽﾁｰﾙ千葉発電所
西４号機
Gas
turbine combined cycle unit (2015)
ｶﾞｽﾀｰﾋﾞﾝｺﾝﾊﾞｲﾝﾄﾞｻｲｸﾙ（ＧＴＣＣ）（2015年）
NisshinSteel Kure Power
Station No. 6
日鉄日新製鋼呉発電所
6号機
Boiler,turbine and generator (planned for 2017)
ﾎﾞｲﾗｰﾀｰﾋﾞﾝ（BTG）（2017年）
JFE
Steel Ohgishima Thermal 1号機
Station No. 1
JFEスチール扇島火力発電所
Gas
turbine combined cycle (plannedfor 2019)
ｶﾞｽﾀｰﾋﾞﾝｺﾝﾊﾞｲﾝﾄﾞｻｲｸﾙ（GTCC）（2019年）
Fukuyama
Joint Thermal
Station No. 2
福山共同火力発電所
2号機
Gas
turbine combined cycle (planned for 2020)
ｶﾞｽﾀｰﾋﾞﾝｺﾝﾊﾞｲﾝﾄﾞｻｲｸﾙ（GTCC）（2020年）

EnergyCO2saving reduction••

EAF company

To boost efforts for energy and CO2 emission reduction within the industry, an enlarged
meeting of the Energy Technology Committee is held once a year. Several dozens of blastand electric furnace engineers gather to exchange technical information and share bestpractices including examples of operational improvement in various companies as well as
to participate in programs like special lectures by relevant institutions.
An in-person meeting was held in November 2023 for the first time in four years at
Kakogawa Works of Kobe Steel Ltd. A special lecture on Japanese and international
trends toward carbon neutrality of the steel and iron industry was given by the METI
Metals Industries Division and case examples of corporate initiatives were shared among
participating companies under the common theme such as energy-saving facility upgrade
and stabilization, AI, IoT, smart security, and digital transformation initiatives.

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

16

Case study (Electric furnace manufacturer, Nippon Yakin Kogyo Co., Ltd.)As part of its initiative to “innovate manufacturing process and refresh Kawasaki Plant” Kawasaki Plant of Nippon Yakin Kogyo constructed a
new electric furnace in January 2022.
The energy saving technologies introduced in the new furnace are as follows.
1. Consolidation and upsizing of the furnace: Reduced the number of times raw materials are fed into the furnace to reduce heat loss by
consolidating two furnaces into one and upsizing the furnace to a larger size
2. Furnace rotator: Achieved even melting of materials by rotating the furnace body to eliminate cold spots

3. Electromagnetic mixer: Shortened operating cycle by facilitating the melting of alloy iron and large scraps and expediting the scrap melting
process by mixing the molten steel
4. Automation of various processes: Shortened operating cycle to reduce heat loss by automating raw material feeding, temperature
measurement, etc.
5. Use of high-performance insulation materials: High-performance insulation materials were applied behind the refractory on the bottom andwalls of the furnace to curb loss of heat through the refractory[Full view of the electric furnace][Overview of furnace rotator]
SpoutrunnerElectrode

Hot spot[Overview of electromagnetic mixer]
Electrode
Spout runner

溶鋼

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

Electromagnetic
coil
17

Energy Saving Projects Supported by Subsidies to Promote Investment in Energy Saving
Among the energy-saving projects adopted as eligible for energy-saving subsidies, the following 7 projects of blast
furnace companies appear to have newly demonstrated energy-saving benefits in the most recent three-year period(FY2020-2022). These companies continue to aggressively pursue energy saving.
Steelworks
FY2020

FY2021

FY2022

Projects

Nippon Steel Setouchi Works Hanshin Area (Toyo)

Project for energy saving at the Toyo Manufacturing Plant

JFE West Japan Works Kurashiki

Project for energy saving by installing high-efficiency steam turbine
generators at the Kurashiki Power Plant

JFE West Japan Works Fukuyama (Setouchi Joint
Thermal Power)

Project for energy saving by introducing high-efficiency power
generation equipment

Nippon Steel Kansai Works Wakayama Area
(Wakayama Kyodo Power)

Project for energy saving by introducing electrically driven blast furnace
blowers

JFE West Japan Works Fukuyama

Project for energy saving by improving byproduct gas utilizationequipment

JFE East Japan Works Chiba

Project for energy saving by recovering waste heat and introducing
high-efficiency equipment

JFE West Japan Works Kurashiki（Setouchi Kyodo Power）

Project for collaborative energy saving by introducing electrically driven
blast furnace blowers© The Japan Iron & Steel Federation, All Rights
Reserved.

18

Japan’s steel industry‘s energy efficiency•

The Research Institute of Innovative Technology for the Earth (RITE) issued an report in 2022 on international comparison ofenergy efficiency level in steel industry (BF-BOF and EAF*). The report showed that Japan maintains the world’s highest
energy efficiency in 2019, as in 2005, 2010 and 2015.

*This report is normally published every five years, but since the 2020 was based on discontinuous operations due to the COVID-19 pandemic, comparisons were made based on theactual results of 2019, which was the most recent year of regular operations.

Japan

Korea

Germany

China

UK

FranceIndia

RussiaUS

Estimate of Steel Industry (EAF) Energy Efficiency (2019, Japan=100)

Japan

Korea

China

US

Germany

Spain

EU

Italy

TurkeyRussia• The penetration rate ofenergy-saving technologies
is extremely high in Japan’s
steel industry.
• Steelmakers are working on
achieving the goals of the
Carbon Neutral Action plan
to Low Carbon Society andsharing best-practiceknowledge among
themselves.

(G/t-crude steel)[Japan=100]

Primary energy intensity(EAF)*Blast Furnace-Basic Oxygen Furnace

Why is Japan’s steel
industry the mostefficient?

(G/t-crude steel)[Japan=100]

Primary energy intensity(BF-BOF)

Estimate of Steel Industry (BF-BOF*) Energy Efficiency (2019, Japan=100)

How can further
reduction of CO2
emission be achievedin the steel industry?

Increasing the use ofenergy saving measuresand technologies not
only domestically, butalso globally will beeffective.

India

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

19

Specific initiative -Use of Waste Plastics and Other Recycled Materials
One goal of the Carbon Neutral Action Plan is to raise the use of waste plastics and other recycled materials to 1 million tons, on thepremise that the government establishes a necessary collection infrastructure. However, collections totaled 370,000 tons in FY2022 andthe volume of cargo collection remains sluggish.
Regarding the effective utilization of waste plastics, etc., we will closely monitor the trend to see whether it is operated as a system that
contributes to the promotion of chemical recycling conducted by the steel industry under the law on recycling of plastics.
(10,000t)

Useof Waste Plastics and Waste Tires
廃プラスチック、廃タイヤの利用実績

Source: The Japan Iron and Steel Federation

(FY)
（年度）

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

20

Current status of chemical recycling•

As for the procurement of plastic packaging and containers, priority is given to material recycling. Therefore, the quantity of the plastic containers and packaging which was
bid off for chemical recycling (using blast furnaces or coke ovens, shown in brown and red individually) is showing little growth.

•

The bidding system was revised in FY 2018, enabling companies that failed to successfully bid for and purchase plastic packaging and containers designated specificallyfor material recycling can now bid for plastic packaging and containers designated for general purposes (chemical recycling, etc.). In FY 2022, the composition ratio of
chemical recycling increased slightly from FY 2018, but remained at a level similar to that in previous years. Separately, from FY2023, the lump-sum collection of plastics as"sorted collection materials (recycled plastic containers + product plastic)" has been added under the designated corporate route, and the bids have been awarded.
Plastic containers and packaging : bid volume composition ratio/winning bid by the recycling process (weighted average)
Material recycling

Chemical Recycle

Material recycling bidding priceoil

Blast furnace
reducing agent

Coke oven Chemical feedstock

gasification

Chemical recycling bidding price(bar graph: 10,000t /Year)(line graph: Yen/T )Bided total
objects
collected
separately (t)Bided total
plastic packa
ging andcontainers (t)Bided total
plastic
products (t)Total objects collected
separately
Breakdown

Material
recycling
Breakdown

ChemicalRecycleSource: The Japan Containers and packaging recycling association

FY2000FY2019FY2020

Unit price without consumption tax

The unit price of the successful bid in FY2023 is the result of the bidding in FY2022.

FY2021

FY2023

FY2022© The Japan Iron
& Steel Federation, All Rights
Reserved.

21

For expansion of chemical recycling• Chemical recycling produces fewer residues than material recycling, and nearly all the materials are recycled. In addition, unit contract prices are low (whichmeans that the recycling-related social cost is low). Chemical recycling is an excellent recycling method.
• Currently, steelmakers can process about 300,000 tons of plastic packaging and containers by using their steel production processes.
• Regarding the effective utilization of waste plastics, etc., we will closely monitor the trend to see whether it is operated as a system that contributes to thepromotion of chemical recycling conducted by the steel industry under the law on recycling of plastics.
Materials Received, Products Sold and Reuse Ratio by
Method (FY2022)

Recycling rate

Unit contract price by method ofrecycling(weighted average)
手法別の落札単価（加重平均）

FY
年度
2000
00年度
2005
05年度
2010
10年度
2018
18年度
2019
19年度
2020
20年度
2021
21年度
2022
22年度
2023
23年度

Material
材料

109,300
109,300
74,49854,94556,406
58,21160,81660,32863,974

Unit:¥, %（単位:円,%)
Chemical
ｹﾐｶﾙ Material/Chemical
ｹﾐ/材
94,20086.2
73,00066.8
38,64651.9
43,33678.9
40,07871.1
46,74380.3
51,312
84.4
48,98481.2
53,991
84.4

出所：公益財団法人 日本容器包装リサイクル協会
Source: The Japan Containers and Packaging Recycling Association

From the standpoint of efficiently and effectively using waste materials (recycling waste materials that are highly effective at cutting CO2 emissions
and have a low social cost), the container and packaging recycling system should stop placing priority on recycling materials that produce only
© The Japan Iron & Steel Federation, All Rights
small reductions in CO2 emissions.
22
Reserved.

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

23

Japanese Industrial Products that Conserve Energy and Cut CO2 Emissions•

Japanese manufacturers have taken the lead in developing and commercializing many highly efficient industrial products. Examples include fuelefficient automobiles and highly efficient power generation equipment and transformers. These products have made a big contribution toconserving energy and cutting CO2 emissions in Japan and worldwide.

•

The Japanese steel industry has established a close relationship with these manufacturers by developing and supplying steel with various
characteristics. This high-performance steel is vital to achieving the outstanding functions of advanced products, and has earned a reputation for
reliability among manufacturers.
Airplane components
Strong and durable jet engine shafts further boost maximum
thrust = Longer range, better fuel efficiency

Motors for hybrid/electric cars
High-efficiency non-oriented electrical sheets for higher fuelefficiency, more power, smaller size and lower weightAutomotive and industrial machinery parts
Strong gear steel increases gears and reduces size andweight – higher fuel efficiency

Boiler tubes
Steel tubes that resist high temperatures and corrosion make power generation
more efficientSuspension springs

Generator parts
Steel for high-efficiency power plant turbines canwithstand high temperatures and high rotation
speedsHigher strength steel for valve andsuspension springs used in punishing
applications makes vehicles lighter andlowers fuel consumption© The Japan Iron & Steel Federation, All Rights Reserved.

24Quantitative Evaluations – Contributions of Major High-performance SteelTo establish a method to determine the quantitative contribution of high-performance steel, JISF set up a committee in FY2001 with the associationsof steel-consuming industries The Institute of Energy Economics, Japan (IEEJ) and the Japanese government. The committee has been monitoring
contributions every year since then.
Statistics are for the five major types of high-performance steel for which quantitative data are available (FY2022 production of 4.36 million tons,
5.0% of Japan’s total crude steel production). The use of finished products made of high-performance steel cut FY2022 CO2 emissions by 10.89
million tons for steel used in Japan and 23.90 million tons for exported steel, a total of 34.79 million tons of CO2.
CO2 Emission Reductions by the five major types of high-performance steel

Domestic

Export(FY2022)

トランス,Transformers
224
電車, 29Trains

Ships
船舶,

194

generation
CO2 reduction Powerboilers.
96
ボイラー,
10.89 Mt-CO2
162

船舶, 82Ships

CO2 Emission Reductions: 34.79
million tons CO2 in total(4.36 million tons of highperformance steel)
Ref:
CO2 Emission Reductions: 33.69 million tons CO2 by the end of
FY2021(6.66 million tons of high-performance steel)Power generation
boilers. 482

ボイラー,
529

Transformers
トランス,

724

CO2削減量2,390万t-CO2

Automobiles
自動車,

Automobiles

自動車,
480

1056

Source: The Institute of Energy Economics, Japan*The five categories are automotive sheets, oriented electrical sheets, heavy plates for shipbuilding, boiler tubes and stainless steel sheets. In FY2022, use of the five categories of steel products in Japan was 0.69 million tons
and exports were 3.67 million tons for a total of 4.36 million tons. The volume of steel used in Japan for ship plates is not included in the calculation from FY2022 onward (not included in the 0.69 million tons used in Japan) due
to the suspension of the release of related statistics.
*Assessments in Japan started in FY1990 and for exports assessments started in FY2003 for automobiles and shipbuilding, in FY1998 for boiler tubes, and in FY1996 for electrical sheets.

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

25

Approaches to Quantitative Assessment from New Perspective (Offshore Wind)
•
•

•
•
•

Since high-performance steels will contribute to products essential to achieving carbon neutrality, JISF commissioned Akita University to promote
quantitative evaluations of such materials.
Quantitative evaluation of bottom-fixed offshore wind power (bottom-mounted monopile and jacket types) in FY2022 and floating offshore wind power was
conducted.
In offshore wind power, high-performance steel is used for the foundation, floating, and the nacelle. These steel products are required to have high rust
resistance and strength according to the operating environment. By supplying high-performance steel products that meet various requirements, we will
support the social implementation of offshore wind power toward carbon neutrality.
Unlike the five conventional products listed on the previous page, products for offshore wind power are those that will be implemented in society in the
future. The quantitative evaluation results on the next page show estimates of their potential contribution in the future.
In the future, assessments will be conducted for CCS-related infrastructure where high-performance steel is used for pipes for CO2 storage (injection).
Floating offshore wind power

Pipes for CO2 storage（Injection）(Courtesy of Nippon Steel Engineering Co., Ltd.)© The Japan Iron & Steel Federation, All Rights
Reserved.

(Courtesy of Japan CCS Co., Ltd.)

26

Quantitative Evaluations – Contributions of Major High-performance Steel (Floating offshore wind power)
In FY2023, the annual contribution of steel to CO2 reductions in a typical example of floating offshore wind power(installation of 30 semi-sub type units) was calculated to be a total of 29.4 kt-CO2/year (*).
(*) This is only a representative example of calculation, and the amount of reduction contribution will vary depending on the combination of
method and facility size.

Example of quantitative evaluation approach (floating type)
377 US$/kW

4,690 US$/kW

About 18 kt-CO2/year

30 units

Steelprocurement
cost

Capital cost
(initial investment,
total project cost)

CO2 reduction
per offshore
wind unit*1

No. ofoffshorewindunits*2

÷××

Share of CO2 reduction contribution by highperformance steel

Total CO2 reduction
from offshore wind

8.04%

0.368 Mt-CO2/year

29.4 kt-CO2/year＝

Reduction
contribution※1 CO2 emissions reduction per offshore wind unit is set by the difference between the FY2020 CO 2 emissions intensity of all power sources (0.48 kg-CO2/kWh), which
is used as a reference for comparison, and the CO2 emissions intensity of offshore wind (0.06 kg-CO2/kWh).
※2 One example of a case study pertaining to the installation of a floating offshore wind farm is the BVGAssociates (2023) Guide to a Floating Offshore Wind Farm
(Cited in the “Vision for Offshore Wind Power Industry (Phase 1)” issued by the Japanese Government). The case study assumes the installation of 30 units of semisubmersible floating wind turbines located 60 km from shore in 100 m water depth, taking economic efficiency and other conditions into consideration. Referring to
the conditions described in the case study and also in light of data obtained from installation projects from around the world and calculations found in various
literature, this analysis assumes a case for installing 30 units of 10 MW semi-submersible floating wind turbines, which means total generation capacity of 300 MW.
© The Japan Iron & Steel Federation, All Rights
Reserved.

27

Future Potential of Steel Products••

Steel products have greatly improved their mechanical and electromagnetic properties. However, the characteristic level weput into practical use is only 1/10-1/3 (in the case of strength) with respect to the theoretical limit value.
The Japanese steel industry will contribute to the reduction of CO2 in the entire life cycle, while supporting the foundation of
the future society, through not only further strengthening steel products but also developing next-generation steel products forhydrogen infrastructure to be expected in the future.

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

28

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

29

CO2 Emission Reduction from Increasing Use of Technologies
Japanese companies provided other countries major energy conservation technologies that the Japanese steel
industry developed and installed. As a result, CDQ, TRT and other major types of equipment alone are alreadylowering annual aggregate CO2 emissions in China, Korea, India, Brazil and other countries by 77.67 million tons.

Emission Reductions in Other Countries
from Japanese Energy-conserving Equipment (FY2022)
No. of units

Reduction

Coke dry quenching (CDQ)

143

3,044

Top-pressure recovery turbines (TRT)

65

1,170

Byproduct gas combustion (GTCC)

58

2,545

Basic oxygen furnace OG gas recovery

22

821

Basic oxygen furnace sensible heat recovery

890Sintering exhaust heat recovery

7

98

Total emission reduction

7,767Mt

Ref: Total emission reduction in FY2021 was 75.55Mt - CO2/year© The Japan Iron & Steel Federation, All Rights
Reserved.

30

CO2 Emission Reduction from Increasing Use of Technologies•

There is much potential in increasing the use of by-product gas and major energy conservation technologies globally,
especially in China which accounts for about 50% of the world's crude steel production, and India where steel production is
expected to continue to grow.
Results of potential evaluation for the recovery
and efficientuse of by-product gases
副生ガスの回収有効利用ﾎﾟﾃﾝｼｬﾙ(GJ/tcs) (2019)
0

1

Energy conservation potential through the spread ofmajor energy conservation technologies

2

US
米国

US
Germany

Germany
ドイツEU

EU(28)EU (28)

COG

Japan
日本
Korea
韓国

BFG

LDG

Japan
WHRS

Korea
China
India

China
中国
India
インド
Russia
ロシア
World
世界計

RussiaWorld

Exhaust Heat Recovery System
for Hot Air StovesAdd) This potential is not the maximum technicallypossible potential, but rather a potential that takes into
account feasibility. Here, the vintage of existing
facilities, energy-saving equipment installed in existing
facilities (with somewhat inferior energy-saving
performance), and even natural gas blowing
technology into the blast furnace are considered in a
simplified manner.

(Source) PCI is set based on JISF's "Steel Statistics Handbook 2021" and the German Iron and Steel Federation (2013).
The other four technologies are set based on 2015 penetration rates <based on Arens et al. (2017), Schulz et al. (2015), China
Steel Industry Yearbook (2016), etc.> and actual subsequent adoption.

(Source) This was estimated on the basis of the IEA
energy balance table (for 2021).

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

31

International Collaboration for the Support of Eco Solutions
2003

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

20

21

22

2023

Japan-China Steel Industry Environmental Protection
and Energy Conservation Technology Conference (2005~)
India and Japan Public and Private collaborative meeting on iron and steel industry

Bilateral
Activities(2011~)

ASEAN-Japan
Steel Initiative (2014~)
Japan-Korea Green
Steel joint
seminar (2023~)

Multilateral
Activities

APP Steel TF(2006~2010)
APP: Asia Pacific Partnership

GSEP Steel WG(2010~2015)
GSEP: Global Superior Energy Performance
Partnership

ENCO (～2009)

EPCO (2010～2013)

ECO (2014～)

Environment Committee

Environmental Policy Committee

Environment Committee

CO2 data collection (2007～)Development of ISO14404* (2009~)

worldsteel etc.

Versions for integrated steel plants and EAF issued in 2013, version for DRI-EAF in 2017 andversion for all types of process in 2020
*International standard for the calculation of CO2 emission from steel plants© The Japan Iron & Steel Federation, All Rights
Reserved.

32

Japan-Korea Green Steel Joint seminar• The Joint seminar held by JISF and KOSA in 2023 based on the proposal from Korea side.
OutlineSchedule
Location
Participants

September 21, 2023
Seoul, Korea
Member of JISF and KOSA, and Government officials (Approximately 100)

Exchange of views on a wide range topics related to carbon neutrality in the steel industry•

Meeting details

•
•
•

•

Evaluation by
participants

Global carbon policy trends (EU Carbon Border Adjustment
Mechanism (CBAM) and EU-US Global Arrangement on Steeland Aluminum, etc. )International standards for the green steel
Policy and technologies development toward Carbon Neutrality
Activities on transition finance and green steel brands uponmass balance approach
As decarbonization of the steel industry becomes a common
global challenge, competition in the steel industry is expected
to intensify in areas such as technology development for
decarbonization, creation of markets for green steel products,
and trade issues. However, it is important for Japan and Korea
to explore areas where both countries can cooperate, and to
steadily promote the decarbonization of the steel industry
through the public and private sectors.
© The Japan Iron & Steel Federation, All Rights
Reserved.

33

33

Japan-China Steel Industry Environmental Protection and Energy Conservation Technology Conference
Discussion on advanced approaches such as green steel and EPD (Environmental Product Declaration) toward
carbon neutrality as well as energy-saving and environmental technologies.
OutlineSchedule
Location
Participants

January 23-25, 2024
Makuhari, Japan
Government officials and steel makers form Japan and China

Introduction of initiatives and policy from both countries toward Carbon Neutrality
Meeting details

Site visit

Evaluation by
participants

•
•
•
•

Innovative technologies development toward Carbon Neutrality
Carbon Border Adjustment Mechanism (CBAM)
Green steel products and EPD platform
Progress of top-level energy saving and CO2 reduction technologies••

JFE Steel Corporation East Japan Works, Chiba
TOKYO GAS CO., LTD Senju Techno Station•

As China and Japan have integrated steel mills and share thesame challenges to achieve carbon neutrality, there is muchroom for cooperation between the two countries.
Japan's presentation on GI funds and transition finance wasinformative for China.
Expect that the knowledge gained from the meeting willcontributes to future activities toward Carbon Neutrality anddecarbonization in the steel industry in both countries.

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

34

34

India and Japan Public and Private collaborative meeting on iron and steel industry in FY 2023
This is the first face-to-face meeting in Japan in about 6 years since December 2017. Discussions on carbon neutrality measures in the steel industries ofboth countries.

OutlineSchedule
Location
Participants

November 29-30, 2023
Tokyo and Kansai area, Japan
Government officials and steel makers form Japan and India

Introduction of policy and initiatives toward Carbon Neutrality
Meeting details

Site visit•••

Policy related to Carbon Neutrality in Japan and India
Japan and India steel makers’ initiatives to achieve Carbon Neutrality
Activities during the transitional period including green steel brands uponmass balance approach in Japan•

Visited factories manufacturing dollies and steel pipes as well as a R&D facility at Kansai Works(Osaka and Amagasaki Areas) and Amagasaki Research and Development Center of Nippon
Steel Corporation
Participants from India asked many questions on diverse subjects varying from forging ofvehicles and maintenance of equipment, to materials, inspection methods, and treatment of raw
materials and sludge.
Exchange between the two countries is becoming increasingly significant toward the huge and35
urgent goal of achieving carbon neutrality especially because Japan and India both rely mainlyonproduction by blast furnace and share common challenges including the use of innovativetechnologies such as hydrogen and Carbon dioxide Capture, Utilization and Storage (CCUS).
Particular interest in the development of innovative technology by the Japanese steel industry and
the Tomakomai CCUS large-scale demonstration experiment.

••

Evaluation by
participants•© The Japan Iron & Steel Federation, All Rights
Reserved.

35

ASEAN-JAPAN Steel Initiative webinar 2024
Introduction the initiatives of the public and private sectors to achieve carbon neutrality from Japan and the ASEAN
region.

OutlineSchedule
February 6, 2024
Location:
OnlineParticipants from ASEAN countries: Ministries and agencies related to steel and energy conservation and steel industry
organizations and their member companies*
Participants from Japan: Ministry of Economy, Trade and Industry, Energy Conservation Center, Japan, and JISF and its
member companies, etc.

Meetingdetails

Policy and Initiatives toward Carbon Neutrality• Initiatives toward Carbon Neutrality in Japan and ASEAN steel industry• Overview of the GX (Green Transformation) league• Projects related to rationalization of energy use in emerging countries in the emerging nations (energy conservation
capacity building projects)
Private initiatives toward Carbon Neutrality• Carbon Neutral Roadmap by Japanese Blast Furnace companies• Operational improvement for energy conservation by Japanese EAF company• Energy saving technologies (BAT) by Japanese engineering company• Efforts toward Carbon Neutrality by Thailand and Indonesia steel company

Evaluation by
ASEAN
participants

As carbon neutrality in the steel industry becomes increasingly important in ASEAN countries, we are grateful to the Japanese
government and companies for their continued cooperation in sharing their knowledge and experience with ASEAN countries
toward a low-carbon, decarbonized society, and for the useful information provided in this webinar.

(※１) ASEAN Centre for Energy(※２) South East Asia Iron and Steel Institute36

Steel Plant Diagnosis
Steel mills were visited, actual equipment and operating conditions were reviewed, and through discussions with engineers, effective
diagnostics and operational improvements were proposed.
OutlineTarget plant
Schedule
STEP 1

EAF steel plant in Malaysia (on site)
November 14-17, 2023
Coordination and questionnaire survey prior to the visit
A steel mill that was diagnosed in 2015 requested a re-diagnosis and a second diagnosis was conducted at the target mill. A
questionnaire survey was conducted on the plant’s equipment specifications, operation conditions, and ISO 14404*-compliant
energy data of the last three years to grasp a general idea of their recent situation prior to the visit.

On site diagnosis

Steps

STEP 2

STEP 3
1.

Results2.


Future Plan•

*ISO 14404: International standard for methods to calculate CO2 emission intensity from iron and steel
production, developed mainly by Japan. Versions optimized for blast furnace, electric furnace, DRI electric
furnace and a guidance for using the 14404 series have been published.

On-site review was conducted to confirm the conditions of the equipment and operation. Proposals to drive energy conservation
through operational improvement and equipment renovation were drawn from on-site data confirmation and discussions with theengineers.
On the final day, the diagnosis results were reported to the plant managers, and challenges in implementing the proposed
measures were discussed.

We analyzed the energy/CO2 emission intensity and energy consumption trends using ISO14404. It was confirmed that appropriate energy
saving technologies had been introduced and that improvements had been achieved accordingly, based on the diagnosis conducted in 2015.
Aiming to further promote energy conservation, new proposals were made for operational improvements such as introducing energy-saving
technologies from the technologies customized list according to the plant’s equipment characteristics.
In response to the high interest from the plant management, we explained the outline of ISO 14404 and the method of data analysis for eachprocess. Comparative analysis was conducted between the results of GHG inventory calculations by an external body and the diagnosis
results based on ISO 14404.
The plant managers showed a positive attitude toward reducing energy consumption not only by introducing energy saving technologies but
also by working to understand the actual status through GHG inventory calculations.

A follow-up survey will be conducted one to two years from now to evaluate the energy conservation and CO2 reduction effects of theimplemented measures.
© The Japan Iron & Steel Federation, All Rights
Reserved.

37

ISO/TC17/SC21(International Organization for Standardization -Environment related to climate change in the iron and steel industry)• Establishment of a new sub-committee of steel environment experts in April 2023 based on the Japanese proposal• Contribute to the rapidly growing interest in "harmonization of emissions calculation methods for the steel industry" through thedevelopment and revision of ISO standards

Overview

Secretariat
Japan
Chairperson Mr. Hiroyuki Kudo (The Institute of Energy Economics, Japan)
Participant countries P-member 21(Including Japan), O-member 3 [as of December, 2023]※P-member has voting right, O-member does not have voting rightISO 14404
Calculation method of carbon dioxide emission intensity from iron and steel
production

Standards
under
ISO/T17/SC21

ISO 20915
Life cycle inventory calculation methodology for steel products

Target in terms of
CO2 emissions

Site based CO2 emissions

Product based emissions*Life cycle inventory for steel productCoverage

Scope1, 2 and 3- Steel-production related CO2 emissions only

Cradle to gate
- Coverage of upstream emissions is wider than ISO14404

Calculation

SimpleBlack box model Energy balance & CO2 emission factor

Requiring expert skills
Sum of process by process emissions

Usage

•
•

Benchmark and track CO2 emission at steel plants
Set CO2 emission target at steel plant••

LCI (Life Cycle Inventory)
EPD (Environmental Product Declaration)

38

Example of Japan’s Energy-Saving Technology•

A press release in December 2021 reported that Nippon Steel Engineering received an order for its CDQ system from Korea’s Hyundai Steelafter the company highly evaluated the system for its top global level steam generation rates and abundant delivery record, high operating rate,and stable operation results.

•

The announcement of a steelmaker in Korea, Japan’s competitor, placing an order for Japan’s energy-saving technology, is expected tostimulate JISF’s eco solution activities.

•

According to Hyundai Steel’s press release, the company is currently planning large-scale investments and technology development toward
reducing greenhouse gas emissions, and as part of this plan will install CDQ systems by issuing Green Bonds.
Schematic drawing of a CDQ system (Nippon Steel Engineering)

Steam*CDQ (Coke Dry Quenching )© The Japan Iron & Steel Federation, All Rights
Reserved.

39

Innovative technology development© The Japan Iron & Steel Federation, All Rights
Reserved.

40

Innovative Technology Development
Japanese steel industry promotes the development of innovative technologies to achieve carbon neutrality, as alarge amount of CO2 is emitted when iron ore, the raw material for iron, is reduced to iron using coal and othermaterials. Currently, the following projects are being implemented as Green Innovation Fund projects.
Development of hydrogen reduction technology using blast
furnaces(1) Development of hydrogen reduction technology using on-sitehydrogenDevelopment of hydrogen reduction technology using blast
furnaces(2) Development of low-carbon technology using external hydrogen andCO2 contained in blast furnace exhaust gas
Development of direct hydrogen reduction technology using onlyhydrogen to reduce low-grade iron ore(1) Development of direct hydrogen reduction technology
Development of direct hydrogen reduction technology using onlyhydrogen to reduce low-grade iron ore(2) Development of technology to remove impurities in electric furnaces
using direct reduced iron

© 'Outline
The Japan& Steel Federation,
All Utilization
Rights Reserved.
Source: Prepared by JISF, based on "Hydrogen steelmaking Consortiumof the Iron
Implementationof the Hydrogen
Project in the Steelmaking Process'" on June 15, 2022.

41

Green Innovation Fund/ Hydrogen Utilization in Iron and Steelmaking Processes Project••

The following members of JISF: Nippon Steel, JFE Steel, and Kobe Steel along with the Japan Research and Development
Center for Metals (JRCM) applied for New Energy and Industrial Technology Development Organization (NEDO)’s “Green
Innovation Fund Project/Hydrogen Utilization in Iron and Steelmaking Processes” and were entrusted with the project on
December 24, 2021
＜Development Items of the Project＞【Item1】 Development of hydrogen reduction technology using a blast furnace
1－①Development of Hydrogen Reduction Technologies Utilizing Hydrogen From Within Steelworks
 By 2030, cut CO2 emissions from steelmaking by 30% or more through the adoption of technologies such as hydrogen reduction technology
utilizing in-house hydrogen and CO2 separation and collection technology in blast furnaces.

1－②Development of Low-carbon Technologies Using External Hydrogen and CO2 Contained in Blast Furnace Exhaust Gas
 By 2030, demonstrate technologies that can cut CO2 emissions from steelmaking by 50% or more in a medium-scale test blast furnace【Item2】 Development of direct hydrogen reduction technology to reduce low-grade iron ore using only hydrogen
2－①Development of direct hydrogen reduction technology
 By 2030, demonstrate that direct hydrogen reduction technologies that use low-grade iron ore can cut CO2 emissions by 50% or more versus
existing blast furnace method used in medium-scale reduction furnaces.
*２－① is a joint initiative by Nippon Steel, JFE Steel, and JRCM

2－②Development of Technology to Remove Impurities in Electric Furnaces Using Directly Reduced Iron By 2030, demonstrate technologies to be used in the comprehensive direct hydrogen reduction to electric arc furnace process that can control theconcentration of impurities (components that affect the product) in a large-scale test electric arc furnace to a level similar to that of a blast furnace
method in order to produce high-performance steel that can be used for the outer panel of automobiles.
Source: https://green-innovation.nedo.go.jp/en/project/utilization-hydrogen-steelmaking/scheme/© The Japan Iron & Steel Federation, All Rights Reserved.
42

Green Innovation Fund/ Hydrogen Utilization in Iron and Steelmaking Processes Project
Project１－①： Development of Hydrogen Reduction Technologies Utilizing Hydrogen From Within Steelworks （COURSE50）
The goal is to implement technology to reduce CO2 emissions by 30% or more from steelmaking processes with technology such as hydrogen reduction
technology in blast furnaces using hydrogen from within steelworks and technology to separate and capture CO 2 by 2030 (Assuming CO2 emissions reduction
by 10% or more using hydrogen reduction technology and that by 20% or more using separation and capture technology, in total 30% or more.).
1) Examination of operating conditions for a demonstration test with an actual blast furnace2) Demonstration test with an actual blast furnace (5000 m3 class)

Source: https://www.greins.jp

An ambient temperature hydrogen-containing gas injection facility will be introduced in No.2 Blast Furnace at Kimitsu Area, East Nippon Works,
Nippon Steel Corporation, and a demonstration test using the actual furnace is scheduled to be started in the second half of FY2025.
© The Japan Iron & Steel Federation, All Rights
Reserved.

43

Green Innovation Fund/ Hydrogen Utilization in Iron and Steelmaking Processes Project
Project １－②Development of Low-carbon Technologies Using External Hydrogen and CO2 Contained in Blast Furnace Exhaust Gas
Super COURSE50：Direct use of external hydrogen to maximize blast furnace hydrogen reduction for extreme CO2 reduction.
1) Part of the coking coal (coke) of the reducing agent was replaced with hydrogen, and part of the iron ore was replaced with direct reduction iron.
2) Technology to achieve CO2 emissions reduction by 50% or more will be demonstrated compared to the conventional blast furnace process.

出典: https://www.greins.jp•

The test blast furnace was remodeled* and a test was started in May 2022 at Kimitsu Area of East Nippon Works, Nippon Steel Corporation.

•

In a test blast furnace, a 33% reduction in CO2 emissions, the world's highest level, was confirmed through the use of heated hydrogen
injection.

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

※ The 12m3 test blast furnace for the COURSE 50 project was used.

44

Green Innovation Fund/ Hydrogen Utilization in Iron and Steelmaking Processes Project
Project １－②Development of Low-carbon Technologies Using External Hydrogen and CO2 Contained in Blast Furnace Exhaust Gas
Carbon Recycling Blast Furnace： Indirect use of external hydrogen, combined with methanation technology, aims to reduce CO2 emissions to theutmost limit.
1) Convert CO2 generated in a blast furnace into methane and use it as a reducing agent repeatedly.
2) Technology to achieve CO2 emissions reduction by 50% or more has been demonstrated compared to the conventional blast furnace process.

Source: https://www.greins.jp• A small-scale carbon-recycling test blast furnace (150 m3) will be constructed at Chiba Area of East Japan Works, JFE Steel Corporation.
• A test operation will be conducted to check the principles of the process from April 2025 to FY2026.
© The Japan Iron & Steel Federation, All Rights
Reserved.

45

Green Innovation Fund/ Hydrogen Utilization in Iron and Steelmaking Processes Project
Project ２－①Direct hydrogen reduction technology
Demonstrate that the technology for directly reducing low-grade iron ore using hydrogen reduces CO2 emissions more than 50% compared to theconventional blast furnace process in a medium-scale direct reduction furnace (one-twenty-fifth to one-fifth the scale of an actual furnace) by 2030.
1) Development of element technologies and verification tests in a small-scale test shaft furnace (1 t/hr)
2) Demonstration test in a medium-scale direct reduction furnace (one-twenty-fifth to one-fifth the scale of an actual furnace)

Resource: https://www.greins.jp••

A small-scale test shaft furnace (1 t/hr) will be constructed and tests will be started in FY2025 at the Hasaki Researchand Development Center of Nippon Steel Corporation.
A small-scale bench test furnace will be constructed and tests will be started in FY2024 at Chiba Area of East Japan© The Japan Iron & Steel Federation, All Rights
Works, JFE Steel Corporation.
46
Reserved.

Green Innovation Fund/ Hydrogen Utilization in Iron and Steelmaking Processes Project
Project ２－②Development of Technology to Remove Impurities in Electric Furnaces Using Directly Reduced Iron
Develop the technology to produce high-grade steels that can be used for automotive outer panels, etc., in the electric arc furnace process utilizing hydrogen direct
reduced iron from low-grade iron ore. Demonstrate the technology to control the concentration of impurities (components affecting the product) to the same level as theblast furnace process (150 ppm or less of phosphorus and 40 ppm or less of nitrogen) in the large-scale integrated electric arc furnace process (with a processing
capacity of approx. 300 tons).
1) Development of element technology and verification in a small-scale test electric arc furnace and secondary refining (with a processing capacity of 3–10 tons)
2) Demonstration test in a large-scale test electric arc furnace and secondary refining (with a processing capacity of approx. 300 tons)

Resource: https://www.greins.jp

A small-scale test electric arc furnace (10 t) will be constructed and a test will be started in FY2024 at the Hasaki R&D Center of Nippon Steel Corporation for high-speed melting of reduced iron andmore efficient refining.
A small-scale test electric arc furnace (10 t) will be constructed and a test will be started in FY2024 at Chiba Area of East Japan Works, JFE Steel Corporation for pre-heating reduced iron and adding
heat in a furnace.
© The
Japan
Iron &atSteelFederation,
RightsA small-scale commercial furnace (20 t) was remodeled and a test has been
startedin FY2022
Takasago
Works of All
Kobe
Steel, Ltd. for the development of technology to melt reduced47
iron.
Reserved.
* The years are all planned.

Development Schedule for this ProjectIn December 2023, the R&D and Social Implementation schedule was revised with the aim of accelerating the process by expanding
projects under implementation and increasing the scale of medium-scale demonstration experiment.
Development of element technology &small-scale demonstration

Medium-scaledemonstration

Large-scale & actual
furnace demonstration

Stage-gate[R&D item1] Development of hydrogen reduction technology using blast furnaces①Development of hydrogen reduction
technologies utilizing hydrogen fromwithin steelworks

Test with a test blast furnace
DesignAltering an actual furnace

Demonstration test with anactualfurnace

Implementation

Development of element technology②Development of low-carbon
technologies using external hydrogenand CO2 contained in blast furnace
exhaust gas

Design &construction

Test with a small-scale test blast furnace

Medium-scale test blast furnace
Construction of ademonstration furnace

DesignDemonstration test

Demonstration test with an actual furnace

Implementation[R&D item2] Development of direct hydrogen reduction technology to reduce low-grade iron ore using only hydrogen
Development of element technology
Test with a medium-scale direct reduction furnace①Development of direct hydrogen
reduction technology

Design & construction

Test with a small-scale test blast furnace

Implementation (Natural gas)

Construction of ademonstration furnace

DesignDemonstration test

Test with a small-scale
test blast furnace

Design & construction

Implementation (Hydrogen)

Collaboration

Development of element technology②Development of technology toremove impurities in electric furnaces
using directly reduction iron

Demonstration test

DesignLarge-scale test electric furnace

Construction of ademonstration furnace

Demonstration test

Implementation

Test with a medium-scale electric arc furnace③Development of large-scale melter
using directly reduction iron

Design & Modification

Demonstration test

Demonstration test with an actual
furnace

Implementation

Source: METI’s R&D and social implementation plan regarding the “Hydrogen Utilization in Iron and Steelmaking Processes” project, December 22, 2023

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

48

Activities during the transition period© The Japan Iron & Steel Federation, All Rights
Reserved.

49

Responding to Low Carbon Steel Demand
•
•
•
•

•

•

•

As one of the world's largest emitting sectors, the steel industry has an important mission to "develop and introduce decarbonization technologies in the
manufacturing process" as well as to "supply low carbon steel (= value of achieved emissions reductions) to customers as soon as possible".
The main measures to decarbonize the steelmaking process are "electric arc furnace" and "hydrogen-reduced ironmaking technology," but both require time todevelop and implement, and zero emissions cannot be achieved all at once in a short period of time.
In order to realize emission reductions as early and as large as possible, it is important to combine multiple measures to promote continuous and step-by-stepemission reductions. This is the transition to carbon neutrality.
To realize such a transition, the concept of actual CO2 emission reductions (ΔCO2) achieved by the emission reduction projects implemented by steelmakers
themselves must be widely understood and recognized by society. ΔCO2 coexists with CFP (Carbon Foot Print) which indicates the status of products.
Furthermore, the "ΔCO2 mass balance approach", which allocates the organization’s accumulated ΔCO2 to products for the specific customers, is the only way
to reduce customer’s Scope 3 emissions during the transition period. Low Carbon Steel using ΔCO2 mass balance approach needs to be highly regarded as adecarbonized product in a transition period.
CO emission reduction (images/examples)2
Price of low carbon steel will have to rise. Achieving carbon
2030
2040
2050
neutrality in the steel process requires a lot of time and huge costs to 2020
• Reduction using on-site hydrogen• Reduction with external hydrogen• Energy saving and efficiency
develop and implement innovative technologies and to build a supply
improvement of existing blast(COURSE50)(Super COURSE50)
furnaces• Partial hydrogen direct reduction• CCUS
chain of clean materials energy which require additional costs too.
• Ferro coke etc.
etc.
• Direct reduction by 100% hydrogen• High-grade steel by electric arc
The transition to decarbonization will not be possible unless low
furnace etc.
carbon steel is sold at a price that adequately reflects the costs
required to produce its "environmental value.“
Institutional backing is needed for green steel to be accepted bymarkets and consumers
CO2 emission intensity•

Transition period

Source: JISF based on METI documents© The Japan Iron & Steel Federation, All Rights
Reserved.

50

Low Carbon Steel with ΔCO2 mass balance approach
1. Calculate the GHG emissions intensity of the specific steel products (ISO 20915)
2. Identify GHG emission reduction projects and determine their GHG emission reduction amounts (ISO 14064)
3. Issue reduction certificates not to exceed the total GHG emission reduction amounts. Supply steel products with reduction
certificates (ISO 22095)[Difference between ΔCO2 and avoided
emissions]
ΔCO2： Measured CO2 emission reduction
project effect in the manufacturing process.
Other than CO2 emission reduction, there is noeffect and function is not improved.
Avoided emissions：The amount of
improvement from conventional products at
product use stage (assumed value). The effectof functional improvement can be quoted suchas improved fuel efficiency of automobiles.

Step 1
Step 2

Step 3Low carbon steel brand applying chain of custody approach
JFE Steel Corporation

ArcelorMittal
POSCO
thyssenkrupp

Kobe Steel, Ltd.

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

51

Establishment and publication of common industry rules
Publication of Guideline 26th October, 2023
https://www.jisf.or.jp/en/activity/climate/documents/Guidelines_231117.pdf

Requirement for “ΔCO2“ generated（Guidline p3-4)
1) Must be reduction projects within the organization
Reduction projects should, in principle, be implemented within an
organization, provided that the project is planned by the organization itself,
incurs additional costs, and is carried out responsibly under a consistentframework. In addition, activities of subsidiaries/affiliates, etc., where theorganization has sufficient control over the management of thosecompanies, may be included.

2) Projects must fulfill “additionality” requirements
A project with additionality refers to a project that would not be viablewithout the objective of GHG emissions reductions and additional
economic benefits, such as the sale of certificates for the value of emission
reductions.
• Projects with technical innovations• Projects must meet criteria such as J-Credit Scheme, which are set bygovernments or public authorities for the same purpose as additionality

3) Actual reductions must be reasonably calculable
GHG emissions reductions from a project can be calculated as the
improvement in GHG emissions over a certain time period after the projectis applied, based on the pre-application status of the project. It isnecessary that the functions and boundaries before and after theapplication of the project are equivalent, and that each is reasonably
calculated, as verified and certified by a third-party certification body.

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

52

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

53

Initiatives in commercial/residential sector
In FY2005, Japan’s steelmakers started energy conservation programs using environmental ledgers for residential
sector. Steelmakers started education programs that included all employees, including at group companies,
promotion of use of household environmental ledgers, and other actions. There are around 20,000 households
participating in this program in FY2022.
The Japanese Steel industry is taking actions to reduce energy consumption and CO2 emission from offices. Unit
energy consumption in offices in 2022 was down 31.3% compared to FY 2008-2012.
Kg-CO2/ capital

家庭からのCO 排出量

Household CO2 Emissions
2(CO（一人当たりCO
kg of CO2/人・年）/person-year)
2 emissions per individual:
排出量：kg-CO
2

Unit energy consumption in offices

2

Unit energy consumption per floor area [MJ/m 3]

▲31％

更新作業中

Japan Total(FY2021)

Steel Industry(FY2021)
Electricity,
etc.

Steel Industry(FY2022)

Avg. FY08-FY12FY22Gasoline

Data for 300 business sites of 69 companies in FY2022
Source: Estimates based on Greenhouse Gas Inventory Office materials
Notes:
1.Total for Japanese households includes households and household use of automobiles.
2. Total for steel industry households is an estimate by JISF based on the inventory in Japan© The Japan Iron & Steel Federation, All Rights
Reserved.

54

Initiatives in the cargo transport sector
CO2 emissions per unit of cargo transport decreased to 39.2kg of CO2/k ton-km in FY22 from 44.0kg of CO2/k ton-km in
FY06. In FY22, the steel industry modal shift (ships + rail) was 76.3% for primary transportation and 97.1% for cargotransported more than 500km. This is far higher than the average modal shift rate of 38.1% for all industries in Japan(Ministry of Land, Infrastructure and Transport FY05 data for more than 500km).
Steelmakers are taking other actions too, such as improving cargo transport efficiency by using a higher pct. of cargo space
on ships, utilizing shore-based electric power supplies for ships and using eco-tires on trucks and using eco-friendly driving
methods.
Fuel saving by using electricity from shore-based sources

CO2 Emissions per Unit of Cargo Transport(kg of CO2/k tons-km)

50

44.0

40

Cuts fuel oil use by 70% to 90%
39.2

while ships are docked

30
20
No. of
units

10
0
2006

2022

(FY)

Steel mills

194

Junction port

40

*Total CO2 emissions from the use of gasoline and diesel oil, heavy oil, etc. of the 43
companies cooperating in the survey, divided by the number of tons/km transported.

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

55

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

56

ISO50001 Certification

Eco Process• ISO50001 is an international standard for energy management systems that was issued in June 2011.
• On February 20, 2014, JISF became the first industrial association in the world to receive ISO50001
certification, the result of global warming and energy conservation measures associated with the voluntaryaction plan and the Commitment to a Low Carbon Society.
• This certification is a proof that the voluntary actions of the steel industry are sufficiently transparent, reliable
and effective in relation to the requirements of international standards.
JISF Energy Management
SystemJISF establishes the highest
possible goals based on available
technologies

ISO50001 Certificate

Suitability of the plan is confirmed by providing
explanations during the target setting process to
the government advisory council and theKeidanren third-party evaluation committee.

The plan is revised as needed
based on assessments andinstructions from the government
advisory council (steel working
group) and Keidanren third-party
evaluation committee© The Japan Iron & Steel Federation, All Rights Reserved.

Member companies take actions
for conserving energy and cutting
CO2 emissions based on JISF
targets
JISF checks the progress by reporting to eachcompanies president at its Executive Board
Meeting

Performance is evaluated every
year by the government advisory
council (steel working group) and
Keidanren third-party evaluationcommittee

57

Target in 2030 and initiatives

Eco Process

On the premise that the macro assumptions in the government’s Strategic Energy Plan and the prerequisites for implementing thevarious measures are met, cut FY2030 energy-related CO2 emissions (total volume) by 30% versus FY2013 by adopting BAT topromote energy conservation, utilizing waste plastics, adopting innovative technologies currently under development andscheduled to be put into use around 2030, and utilizing raw fuel with less CO2 emissions.
Expected Reduction(kilotons-CO2）

Initiatives
1．Promote energy conservation（Improving efficiency of coke ovens and power generating
facilities; reinforcement of energy-saving facilities;
improving efficiency of power-consuming facilities; making
EAF process energy efficient)
2. Expand chemical recycling of waste plastics
３．Adopt innovative technologies（COURSE50, Ferro cokes）
４．Other（Using raw material and fuel with less CO2 emissions, etc.)
5. Production volume change

6. Improve CO2 emission factor of purchased electricity
Total

Calculation Basis

Approx. 2,700 Potential indicated by the government in the Strategic Energy Plan/Plan for Global
Warming Countermeasures*Energy conservation during the EAF process is based on each company’s reporting

Approx. 2,100 Potential indicated by the government in the Strategic Energy Plan/Plan for Global
Warming Countermeasures（Expand use of waste plastics to 1 million tons)
Approx. 2,600 Potential indicated by the government in the Strategic Energy Plan/Plan for Global
Warming Countermeasures
Approx. 8,500 Reduction achieved when all the exported scrap (7.5 million tons) is utilized in Japan.
Approx. 3,400 CO2 emission reduction achieved when national crude steel production reaches 90
million tons* as indicated in the Strategic Energy Plan/Plan for Global WarmingCountermeasures*This is not the total of each company’s production capacity reduction announced inits management plan
Approx. 8,000 CO2 emission reduction achieved when emission factor of purchased electricity
improves to (0.25kg-CO2/kWh)Approx. 57,900(30% reduction）*FY2030 target before the reexamination was a “9 million-ton reduction©
in TheCO2 emissions
versus
BAU”.Federation, All Rights Reserved.
Japan Iron
& Steel58

Prerequisites for Eco Process Target

Eco Process

Promote Energy Conservation
 The goal of the JISF’s Action Plan is to incorporate the total amount of CO2 emissions reductions calculated from the
maximum energy conservation potential without physical/economic constraints. It does not promise the amount of reductionor the number of countermeasure to be implemented for each specific measure.

Expand Chemical Recycling of Waste Plastics
 The quality and collection volume of waste plastics suitable for steel chemical recycling must be ensured and the bidding
system for plastic packaging and containers must be drastically improved under the new law on waste plastics

Introduce Innovative Technology
 Innovative technologies must be developed through industry-wide technological development under government support
such as the Green Innovation Fund, and economic rationality must be ensured in their introduction.
 Regarding COURSE50, international equal footing must be ensured. It should also be ensured that the social infrastructure,including selection and securing of storage space, is in place when conducting CCS as a national initiative.

Use of raw material and fuel suitable for CO2 reduction, etc.
 With regard to the use of cold iron sources such as scrap and reduced iron, technology for manufacturing high-grade steel products using coldiron sources as raw materials should be established by the industry's effort in R&D, with government support through the Green Innovation
Fund.
 Economic rationality must be ensured in the domestic collection of scrap that can withstand the production of high-grade steel and in theutilization of cold iron sources. Furthermore, when expanding the use of scraps to electric arc furnaces, the industrial electricity price must be at
the same level as neighboring steel trading countries, such as China and Korea.
© The Japan Iron & Steel Federation, All Rights Reserved.

59

External Factors and review of 2030 Target

Eco Process

External Factors• Increase in CO2 emissions in FY2030 resulted by increased production (domestic crude steel production
exceeding 90million tons) and/or failure to improve the CO2 emission factor of purchased electricity to 0.25kgCO2/kWh will not fall under target management.
Review of Target
Targets will at least be reviewed at the following timing until the target year.
When policy changes are made due to revisions to the Strategic Energy Plan and/or Plan for Global
Warming Countermeasures
When it is clear that the prerequisites for each measure indispensable to achieving the target will not be met
When there is considerable impact on production activities due to natural disasters and/or a significant
change in the social environment© The Japan Iron & Steel Federation, All Rights Reserved.

60

Comparison with the Government and overseas steel makers
TargetEco Process•

JISF has set an ambitious target which includes not only the steel industry’s energy conservation and CO 2 reduction potential (maximum adoptionof BAT) outlined in the 6th Strategic Energy Plan/Plan for Global Warming Countermeasures, but also the amount of reduction to be achieved
through the utilization of scraps.

•

If this target is achieved, the unit CO2 emission per ton of crude steel in FY2030 will improve
approximately 13% versus FY2013 (approx.15% improvement versus FY2020).
This is consistent with the assumed base unit improvement (about a 10% improvement versus
FY2020 as of FY 2030) necessary to achieve 2050 Carbon Neutrality as indicated in thegovernment’s Technology Roadmap Formulated for Transition Finance Toward Decarbonizationin the Iron and Steel Sector.

•

•

•
•

The Federation conducted a international comparison of energy efficiency based on a survey
commissioned to RITE. (2005, 2010, and 2015).
The international comparison based on the 2019 actual results also shows that Japan has theworld’s most energy-efficient steel industry.
The new Phase II target is sufficiently ambitious even when compared to the current energy
efficiency as well as the targets of major foreign steelmakers.

International Comparison of Energy Efficiency Level in
Steel Industry by RITE (BF-BOF*)/2019 actual results )Approx. 10%
improvement*Blast Furnace-Basic Oxygen Furnace

Source: Technology Roadmap Formulated for Transition Finance Toward
Decarbonization in the Iron and Steel Sector

Reduction target of major overseas steelmakers
・AcelorMittal (Global): -25% versus 2018
・POSCO: -10% versus 2017-2019 average
・Baowu: -30% in 2035 versus peak

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

61

Investments for Environmental Protection and Energy Conservation

Eco Process• The Japanese steel industry made investments of about ¥3 trillion between FY1971 and FY1989 forenvironmental protection and energy conservation. These investments totaled about ¥1.8 trillion between
FY1990 and FY2012.
• Investments for rationalization and labor-saving totaled about ¥2.1 trillion between FY2005 and FY2021.
(¥100million)（億円）
50,00040,000Data
available
until
FY201230,00020,00010,000Cut
energy use by 10%
省エネ１0%達成‘90～’２０１２年度で1.8兆円の設備投資¥1.8
trillion from FY1990 to FY2012

Cut energy use by 20%
省エネ20%達成‘71～’89年度で３兆円の設備投資¥3 trillion from FY1971 to FY1989

2019

2018

2017

2016

2015

2014

2013

2011

2012

2010

2009

2008

2007

2006

2005

2004

2003

2001

2002

1999

2000

1998

1997

1996

1995

1994

1993

1991

1992

1990

1989

1988

1987

1986

1985

1984

1983

1981

1982

1980

1979

1978

1977

1976

1975

1974

1973

1971

1972

0

（年度）

Fig. Accumulative
investment forenvironmental
facilities since
FY1971

Source: ~FY2011: METI Survey on Capital Investments of Major Industries, FY2002~: METI Survey on Corporate Finance (former Survey on Capital
Investments)(¥100million)

Fig.
Accumulative
investment for
rationalizationand laborsaving since
FY1999Data
99年～
available
実績公表
since
FY1999Source: Development Bank of Japan Inc*Consolidation of production facilities, renewal of energy

saving equipment, etc.
© The Japan Iron & Steel Federation, All Rights Reserved.

62

Energy Conservation Initiatives of the Steel Industry
’70s

’80s

Process
improvements

Continuous casting,continuous annealing, etc.

Hot charge rolling, automatedcombustion control, etc.

Blast furnace coal powder input, coalmoisture control, etc.
Artificial intelligence, supply chain network, etc.

Constant
improvements

Gas holder, high-efficiency gas turbine combined cycle generation, etc. CO recovery
2

TRT, (CDQ), etc.

Regenerative burners, etc.

Waste plastics and tires,
biomass

Recovery of mid/lowtemp. exhaust heat

Gasification, etc.

Recovered Net consumption4) Use of waste materials

Total energy consumption

SCOPE-21

Hydrogen amplification,2) Recovery and efficient use of
byproduct gases
3) Exhaust heat recovery

’10s

’00s

COURSE-50
Ferro-coke

1) Process innovations’90s

Eco Process

Process
innovations
Process
improvements

Byproduct gas
use
Exhaust heatrecovery

‘73

‘80

‘90

‘00

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

‘10

Waste materialuse

63

Crude Steel Production and Total/ Unit CO2 Emissions
Crude Steel Production and CO2 Emissions（Electricity emission factor after arrangement）

Eco Process

Crude Steel Production and CO2 Emissions factor（Electricity emission factor after arrangement）

Crude steel output (left scale)

Crude steel output (left scale)CO2 emissions

CO2 emissions

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

FY64

Quantitative Evaluation of Contribution of High Strength
Sheets for Automobiles

Eco ProductSource：Japan Business Federation, “Contributing to
Avoided Emissions through the Global Value Chain”© The Japan Iron & Steel Federation, All Rights Reserved.

65Quantitative Evaluation of Contribution of High Tensile Strength Plates for
Vessels

Eco ProductSource：Japan Business Federation, “Contributing to
Avoided Emissions through the Global Value Chain”© The Japan Iron & Steel Federation, All Rights Reserved.

66Quantitative Evaluation of Contribution of High Strength, Heatresistant Tubes for Boilers

Eco ProductSource：Japan Business Federation, “Contributing to
Avoided Emissions through the Global Value Chain”© The Japan Iron & Steel Federation, All Rights Reserved.

67

Quantitative Evaluation of Contribution of Grain-oriented
Sheets for Transformers

Eco ProductSource：Japan Business Federation, “Contributing to
Avoided Emissions through the Global Value Chain”© The Japan Iron & Steel Federation, All Rights Reserved.

68Quantitative Evaluation of Contribution of Stainless Steel
Sheets for Railway Cars

Eco ProductSource：Japan Business Federation, “Contributing to
Avoided Emissions through the Global Value Chain”© The Japan Iron & Steel Federation, All Rights Reserved.

69

Quantitative Evaluations – Contributions of Major High-performance Steel in 2022

Eco Product

In FY2022, the annual contribution of steel to CO2 reductions in a typical example of offshore wind power(installation of 77 monopile type units) was calculated to be a total of 104 kt-CO2/year (*).
(*) This is only a representative example of calculation, and the amount of reduction contribution will vary depending on the combination of
method and facility size.
Example of quantitative evaluation approach (monopile type)*1*2

181 US$/kW

2,400 US$ /kW

About 18kt-CO2/year

77 units

Steelprocurement
cost

Capital cost
(initial investment,
total project cost)

CO2 reduction
per 13MW
offshore windunit*1

No. ofoffshorewindunits*2

÷××

Share of CO2 reduction contribution
per offshore wind unit*1

Total CO2 reduction
from offshore wind

7.54%

About 1.381 Mt-CO2/yr

CO2 emissions reduction per offshore wind unit is set by the difference between the FY2020
CO2 emissions intensity of all power sources (0.48 kg-CO2/kWh), which is used as a reference
for comparison, and the CO2 emissions intensity of offshore wind (0.03 kg-CO2/kWh).
The number of offshore wind units is calculated as 77 units from <1> divided by <2> given
below:<1> Amount of offshore wind power expected by the national government to be introduced by
FY2030: 1 million kW (source: Agency for Natural Resources and Energy)<2> Capacity per offshore wind unit: 13 MW (source: press information on an offshore project
off Akita Prefecture)＝

Reduction
contribution
104 kt-CO2/yr

Image of offshore wind power generation facility(implantation-type)(Courtesy of Nippon Steel Engineering Co., Ltd.)© The Japan Iron & Steel Federation, All Rights
Reserved.

(Courtesy of JFE Holdings, Inc.)

70

The global competitive edge of the Japanese steel industry, mainly
for high-performance steel

Eco Product•Steel from other countries is incomparable with Japan’s high-performance steel in terms of performance, quality, supply and other attributes.
High-performance steel is the core element of the international competitive edge of the Japanese steel industry.

•

China, the world’s largest steel producer, became a net exporter of steel in 2006. Japan is the only net exporter of steel to China now.
Steel Trade of China（total）(Units: 10,000 tons)（単位：万トン）

With Japan

Excess importJapan’s share of
China’s steel imports

2005
Japan
24%
Excess export from 2005

With Korea

ExcessimportOthers76%

Excess export from 2006

Total

Excess import

2022
Japan
others 24%
76％

source：China Tariff Statistics© The Japan Iron & Steel Federation, All Rights
Reserved.

71

CO2 Emission Reduction from Blast Furnace Slag Used in Cement

Eco Product

Mixed cement (mainly slag cement) is one way to lower CO2 emissions related to energy consumption. The use of this cement is
growing and a further increase in the production ratio of mixed cement could significantly lower CO2 emissions.
Estimate of contribution of slag cement to reductions in CO2 emissions (domestic plus export)

Replacing conventional cement (Portland
cement), which generates CO2 during thefiring of raw materials, with slag cement, 10,000t-CO2
which does not generate CO2 during
production, reduced annual CO2
emissions by 9.89 million tons/year(FY22).
Domestic: Annual reduction of 2.97 mn
tons of CO2
Exports: Annual reduction of 6.92 mn
tons of CO2

Assumptions for emission reduction contribution
Conversion to volume of cement: 450kg of slag/ Tonof cement CO2 emission reduction: 312kg of CO2/Tonof cement(FY)© The Japan Iron & Steel Federation, All Rights
Reserved.

72

Growth of Global Crude Steel Production••

Eco Solution

As of the end of 2015, the per capita steel stock in Japan was 10.7 tons compared with 4.0 tons worldwide.
Steel stock per capita is an indicator of the penetration of social infrastructure and industrial products, which are a measure ofprosperity. The steel stock is expected to grow steadily in emerging countries as these countries become more prosperous
and accomplish Sustainable Development Goals (SDGs).

Global crude steel production will increase for many more years
India’s steel industry plans to approximately triple crude steel output to 300 million tons by 2030.
Global Crude Steel Production(Million
tons)（百万トン）

2022(P)

2,500

18.8bn tons
World
世界計
日本
Japan
中国
China
インド
India

2,000

1,500

India: Goal isannual crude
steel production
capacity of 300
million tons by
2030-31

1,000

500

0
45

50

55

60

65

70

75

80

85

90

95

00

05

10

15

20

25

Calendar
year
暦年
30

Source: worldsteel© The Japan Iron & Steel Federation, All Rights
Reserved.

73

The Japanese Steel Industry’s Overseas Contributions to Energy Conservation

Eco Solution

1. China: Japan-China Steel Industry Environmental Protection and Energy Conservation Technology Conference (2005~)• This conference has been held periodically since July 2005, when an MoU was signed by the leaders of steel industry in both countries.
Providing a forum for exchanges of information about steel technologies, this conference plays a key role in international steel industry
cooperation.
• The 14th conference was held in January 2024, the first physical meeting in four years. A total of about 70 people, including government
officials and steelmakers from both Japan and China, participated. In addition to the importance of the previous exchanges focusing on energy
saving and environmental conservation technologies, the significance of exchanges for the reaching of carbon neutrality was mentioned.
2. India: Public and Private Collaborative Meeting between the Indian and Japanese Steel industries (2011~)• Launched in 2011, this meeting has been held 11 times, bringing together Public and Private sector energy conservation experts from the Indian andJapanese Steel industries.
• The Japanese steel industry has provided assistance concerning the introduction of its energy conservation technologies in India. Activities include steel
plant diagnosis using ISO14404, the establishment of a Technologies Customized List containing energy conservation technologies suitable for India,
and technology seminars held by Japanese manufacturers of energy conservation equipment. Most recently held in November 2023.

3. ASEAN: ASEAN-Japan Steel Initiative (2014~)• Since its start in February 2014, this initiative brings together steel industry energy conservation
professionals from Japan and 6 ASEAN countries (now 7 countries with Myanmar as a member).
Workshops for specific themes have been held for the ASEAN region and individual countries tosupport energy conservation measures in the ASEAN steel industry.
• 17 ASEAN steel mills has undergone steel plant diagnoses (2 conducted online) and was provided
advice for improving operations and using new technologies.
© The Japan Iron & Steel Federation, All Rights
Reserved.

74

Technologies Customized List

Eco Solution

The Technologies Customized List contains information about technologies involving energy conservation andprotecting the environment that are recommended for specific countries and regions. These lists have been
prepared for India and the ASEAN region. (revised Oct. 2023).
79 recommended technologies(44 techs for Bf-BOF and 35 techs for EAF)The Technologies
Customized List for India

Energy conservation benefits,
technology suppliers and otherinformation

Technology Explanation
SheetsThorough explanations of individual
technologies

JISF’s website：http://www.jisf.or.jp/en/activity/climate/Technologies/index.html© The Japan Iron & Steel Federation, All Rights Reserved.

75

Contribution to the introduction of energy-saving technologies in the Indiansteel industry

Eco Solution• At 9 steelworks where steel plant diagnoses were implemented between 2007 and 2018, Japanese experts
recommended the introduction of energy conservation technologies in 42 cases on the basis of theTechnologies Customized List.
• About 70% of the recommended technologies have been introduced or planned to be introduced (as ofJanuary 2021).
Technologies recommended for steelworks where energy
conservation diagnoses have been implemented and technologies
that have been introduced

Number of cases
Number oftechnologies
recommended

42

Number oftechnologies
introduced*

15 (36%)

Number oftechnologies
planned to be
introduced

14 (33%)*Many of them are large-scale, cost-effective technologies,
including coke dry quenching (CDQ) and top-pressure
recovery turbines (TRT).
India Technologies Customized List (for blast furnaces)© The Japan Iron & Steel Federation, All Rights Reserved.

76

Steel Plant Diagnosis

Eco Solution

Objective

1.Evaluate energy efficiency level of the steel plant using ISO14404*.
2.Recommend energy saving technologies from Technologies Customized List (TCL) based on theequipment diagnosis to encourage technology transfer from Japan*ISO14404 is an international standard for calculating CO2 emissions from a steel plant .

1
Day1~3

2

Day4

Operation observation of BF-BOF, EAF,
reheating furnace and other facilities
Energy data collection by using
ISO14404

Reporting session
Based on ISO14404, Japanese experts
3
1. analyze energy consumption trend
2. recommend suitable energy saving
technologies mainly from TCL
3. provide advice for operational improvement

The steel plant
diagnoses havebeen performed at
31* locations.


14 plants in India
17 plants in the ASEAN
region in 6 countries***Including the on-line Steel Plant
Diagnosis**Indonesia, Singapore, Thailand,
Philippines, Vietnam, Malaysia

77

Example of use of unused energy in nearby locations

Other activities

Supply of heat to sake companies bya steelmaker in the Kobe area

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

78

(IPP) Examples of Efforts for Mixed-Firing Power Generation
Using Forestry Residue

Other activities

Characteristics- Reducing greenhouse gas emissions by increasing the use of woody biomass- Increasing the use of renewable energy that can generate power stably (biomass) under the feed-in tariff
system- Contributing to promoting the local forest industry and revitalizing the rural economy
Kamaishi Steelworks
Power generation facilities: Pulverized coal thermal power generation (149MW)
Quantity used: About 7,000 tons per year (current level) → 48,000 tons per year (final target)
Type: Chips → Fine-grained chips
Commencing time: October 2010 → June 2015: The quantity used was increased.

In 2017, this steelworks received the New Energy Award (the prize of the Minister of Economy, Trade andIndustry) from the New Energy Foundation for its efforts to increase the use of biomass-coal co-firing
power generation, together with IHI Corporation.
Oita Steelworks
Power generation facilities: Pulverized coal power generation (330MW)
Quantity used: 12,000 tons per year
Type: Chips
Commencing time: December 2014 (The planned quantity has been used since February 2015.)© The Japan Iron & Steel Federation, All Rights Reserved.

79

Efforts to Achieve Zero-Carbon Steel Production

Long term vision- Nov, 2018: Release of “long-term vision for climate change mitigation- A challenge towards Zero-carbon STEEL-”- In June 2020, Nippon Steel, JFE Steel, and Kobe Steel, which are members of the JISF, and the Japan Research and Development Center for
Metals (JRCM) were entrusted with a technology development project for realizing zero-carbon steel. The New Energy and Industrial Technology
Development Organization (NEDO) had publicly invited applications for the project.
- This project aims to extract several prospective innovative technologies that focus mainly on decarbonization in steel production and to prepare atechnology development roadmap for the steel industry of Japan. The JISF has determined to lead the world in undertaking technology
development for the purpose of realizing zero-carbon steel by bringing forward initial plans under the above-mentioned long-term vision.

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

80

Steel Production Processes and Development and Use of Energy Conservation
Technologies© The Japan Iron & Steel Federation, All Rights Reserved.

Production Process81