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Nippon Steel to Slash Carbon Emissions with New 630 Billion Yen Furnace

Kitakyushu, Jun 02, 2025 (News On Japan) - Nippon Steel, which operates major steelworks in Kitakyushu, announced on May 30th a new investment plan to introduce an electric arc furnace that uses electricity instead of coal to produce steel.

The company will invest approximately 630 billion yen in the Yawata area of Kyushu Works in Kitakyushu to construct the first-phase electric arc furnace, with an annual production capacity of around 2 million tons. Currently, the site operates a traditional blast furnace that relies on coal, but switching to an electric furnace is expected to significantly cut carbon dioxide emissions, though it may also result in higher production costs.

Kitakyushu Mayor Kenji Takeuchi welcomed the move, stating, "This development will establish Kitakyushu not only within Japan but globally as a new center for manufacturing and innovation. It’s a major and encouraging step forward."

Nippon Steel plans to introduce electric furnaces at three domestic sites, including Kitakyushu, and aims to begin operations by the second half of fiscal 2029.

Source: FBS

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