Kurashiki, Japan — In a bold move toward carbon-neutral manufacturing, JFE Steel Corporation has unveiled a ¥329.4 billion (USD $2.2 billion) project to construct an advanced electric arc furnace (EAF) at its West Japan Works facility in Kurashiki. The initiative, partially backed by a Japanese government grant of up to ¥104.5 billion (USD $690 million), marks a significant milestone in the global steel industry’s transition toward greener production.
Slated to begin operations in the first quarter of fiscal year 2028, the facility will be the world’s first to mass-produce high-grade steel—such as electromagnetic and high-tensile steel sheets—using a low-carbon EAF process. These specialized steels are currently only achievable through traditional, high-emission blast furnaces.
Innovation Meets Climate Strategy
This large-scale EAF will incorporate next-generation proprietary technologies developed under Japan’s Green Innovation Fund, an initiative led by the New Energy and Industrial Technology Development Organization (NEDO). The program is central to Japan’s national decarbonization roadmap for energy-intensive sectors.
The furnace will utilize hydrogen-based reduction and low-carbon direct-reduced iron (DRI) to significantly reduce emissions compared to conventional steelmaking. According to JFE Steel’s official press release, the company aims to become the “world’s first mass supplier” of high-function steel via EAF—materials essential for applications such as electric vehicles, renewable energy systems, and lightweight transport infrastructure.
A Broader Vision for Sustainable Steel
JFE’s Kurashiki project is part of a broader decarbonization strategy outlined in its JFE Group Environmental Vision for 2050, which sets long-term goals for climate leadership and industrial innovation. The company is concurrently operating demonstration facilities in Chiba—including a carbon-recycling blast furnace and a small-scale arc furnace—to accelerate the commercial viability of ultra-low-emission steel technologies.
By concentrating its R&D and pilot operations in a single region, JFE aims to streamline the development of what it describes as “super-innovative” steelmaking processes.
“JFE Steel will now promptly proceed with the construction of an electric arc furnace, hoping to launch a new steelmaking process based on this innovative new technology at the earliest possible date,” the company stated.
The government’s funding commitment reflects Japan’s strategic priority to decarbonize heavy industry through targeted investments in infrastructure and innovation. JFE’s participation in the Green Innovation Fund’s Hydrogen Utilization in Iron and Steelmaking Processes program positions it at the forefront of this industrial transformation.
References:
- JFE Steel Press Release (April 2025)
- esg.com
- Japan Ministry of Economy, Trade and Industry (METI) – Green Innovation Fund Overview
- NEDO – Green Innovation Program for Hydrogen and Steel
Jfe Logo Picture by logodix
