Tokyo, June 2025 — Nippon Steel has announced a ¥870 billion (USD $6.05 billion) investment to transition three of its Japanese plants to electric arc furnace (EAF) technology, a major step in its push to reduce carbon emissions and meet long-term climate targets.
The initiative, supported by ¥251 billion ($1.75 billion) in subsidies under Japan’s Green Transformation (GX) Promotion Act, is set to add 2.9 million metric tons of annual steel production by fiscal 2029. EAFs, which use electricity to melt scrap or reduced iron, emit significantly less CO₂ than conventional coal-based blast furnaces.
“This investment is a key step toward our Carbon Neutral Vision,” the company stated, reaffirming its goal to cut emissions by 30% by 2030 and achieve net-zero by 2050.
The plan includes a new EAF at Kyushu Works and upgrades at two other domestic sites. The move reflects a broader strategy to decarbonize operations while helping customers lower their own emissions through low-carbon steel products.
Steelmaking is responsible for 7%–9% of global fossil fuel-related emissions, underscoring the importance of this transition. Nippon Steel has already reported a 43% emissions reduction from a test furnace at its East Nippon Works site in late 2024.
The investment positions Nippon Steel as a regional leader in Asia’s green industrial shift, aligning with global ESG and climate finance priorities.
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