Japan’s Kobe steel mulls electric arc furnace in Kakogawa

Kobe Steel, Japan’s third-largest steelmaker, plans to build a large electric arc furnace in Kakogawa, Reuters reported on Monday. This initiative is a key part of Kobe Steel’s strategy to speed up its decarbonisation efforts.

The company’s president, Yoshihiko Katsukawa, stated that they are contemplating the introduction of an innovative electric arc furnace capable of producing high-end steel products, although this would not occur until after 2030.

He also mentioned that the final steelmaking structure is yet to be determined, but the company is considering a scheme with one blast furnace and one electric furnace.

Given that steel production accounts for about 7 per cent to 9 per cent of global CO2 emissions, efforts to reduce these emissions are crucial in the fight against climate change.

As part of a new three-year management plan, Kobe Steel aims to make decisions on a 300 billion yen ($1.9 billion) investment over the next three years to reduce its CO2 emissions in steel-making and power generation operations; however, the actual spending will occur after March 2027.

In addition to its steelmaking operations, Kobe Steel also runs a power generation business, as it plans to achieve 20 per cent ammonia co-firing with coal in the No. 1 and No. 2 units at its Kobe coal-fired power station by 2030.