Japan’s Kobe Steel to cut investments in decarbonization

Japanese steelmaker Kobe Steel has announced some changes to its investment plans for the three-year financial period between 2024 and 2026 due to rising global uncertainty. In this way, the company aims to maintain its financial stability and prioritize economic rationality in the short term, SteelOrbis reports.

Kobe Steel has reduced its investment plan for the period from approximately 950 billion yen ($6.23 billion) to 750 billion ($5.53 billion).

The company will allocate approximately 150 billion yen ($1.05 billion) to decarbonize its operations, compared to the original plan of approximately 300 billion yen ($2.09 billion) due to the slowdown in the global trend towards carbon neutrality,

The Japanese steelmaker intends to reduce its carbon emissions by 30-40% by 2030 compared to 2013 levels and achieve carbon neutrality by 2050.

To achieve these goals, the company plans to use large-scale innovative electric arc furnaces and ammonia co-combustion technology in blast furnaces starting in 2030. Kobe Steel also aims to increase the use of scrap, integrate biomass into blast furnaces and implement energy-efficient processes.

As GMK Center reported earlier, Třinecké Železárny Group, the largest steel producer in the Czech Republic, is postponing the completion date of the largest decarbonization investment in the plant’s history. The main reasons for the delay in the implementation of the EAF are the lack of public support, uncertainty about the future direction of Europe in the rules related to the Green Deal, the current negative situation on the steel market, and unclear import protection rules.