JFE Steel invests $2.26 billion in the construction of an electric arc furnace in Japan

JFE Steel, Japan’s second largest steelmaker, is investing ¥329.4 billion ($2.26 billion) to build a large modern electric arc furnace (EAF) at its Kurashiki facility at West Japan Works. This is stated in the company’s statement.

As noted, the company announces this step after the Japanese government approved a 104.5 billion yen grant to JFE Steel to support the implementation of the electric arc furnace.

The EAF will incorporate JFE Steel’s patented technologies and other innovative solutions, including those for high quality and high efficiency smelting, which are being developed as part of a separate initiative to promote the use of hydrogen as the primary reducing agent. This initiative is one of several Green Innovation (GI) Fund projects organized by the Japan Energy and Industrial Technology Development Organization (NEDO).

The advanced electric arc furnace will have an annual production capacity of approximately 2 million tons. It is expected to start production in April-June 2028. The project will also include the construction of other facilities, including a modernized berth.

The construction of the EAF is part of the company’s efforts to reduce carbon emissions. In May 2021, JFE Group’s 2050 environmental vision was formulated. Going forward, JFE Steel is committed to developing super-innovative technologies that contribute to global sustainability.

As GMK Center reported earlier, JFE Steel’s EAF project received government support at the end of last year. This proposal was selected as part of a program to support the transformation of energy and production processes for industries that are difficult to decarbonize.