It's set! New 2.9 million tons of electric furnace steelmaking project!

At the "Green Steel Study Group for Promoting GX" sponsored by the Ministry of Economy, Trade and Industry, Nippon Steel proposed measures to promote the formation and expansion of the GX steel market through public-private cooperation. On May 30, Nippon Steel announced its investment decision to transition from a blast furnace process to an electric furnace process. Although the switch from the blast furnace process to the electric furnace process can bring significant CO2 emission reduction effects, it will incur high equipment investment costs, as well as a significant increase in production costs due to raw materials and electricity. Nippon Steel is a private steel company that ensures a predictable return on investment. In addition to the government-supported projects approved this time, the formation of a robust "Green Transition (GX) Steel" market in which the "CO2 reduction value" is reasonably assessed and compensated is also one of the important factors contributing to Nippon Steel's green transition investment. The investment will build a new electric furnace in the Yawata area of Kyushu Iron Works and a new electric furnace in the Hirohata area of Setouchi Iron Works, and upgrade the electric furnace in the Yamaguchi Iron Works area, this investment will cost 868.7 billion yen (about 43 billion yuan) from Nippon Steel and 251.4 billion yen (about 12.4 billion yuan) from the Japanese government to the three electric furnaces with a total production capacity of about 2.9 million tons, which will be put into operation in 2028-2029。