Japanese Steel Giant Shifts to Recycled Steel in Green Race

(Bloomberg) -- Nippon Steel Corp., Japan’s top producer, is shifting its focus to recycling the metal as ambitious net-zero emission targets intensify a race to develop cleaner steel.

Taking steps toward decarbonization is one of the pillars of Nippon Steel’s mid-term business plan starting April, Executive Vice President Katsuhiro Miyamoto said in an interview on Friday. As part of its efforts, the company is working on research to build much larger electric-arc furnaces, which are used to make steel from scrap, to mass produce the metal, he said.

Steelmakers are under pressure to respond to net-zero emission targets set by governments in Europe, China and Japan, which is aiming to become carbon neutral by 2050. A United Nations report released Friday totaled up new national climate commitments and concluded that the effort “falls far short” of what’s necessary to slow global warming.

“Since the government presented the policy, we will incorporate measures for zero carbon in the business plan,” Miyamoto in the interview. “First, we must allocate our resources to research and development.”

The world’s third-biggest producer has been making steel from mined iron and coal in more polluting blast furnaces for more than a century. While electric furnaces release only a fraction of carbon dioxide compared with blast furnaces, it’s still a challenge to make high-quality steel because scrap contains impurities.