Japanese steelmaker Kobe Steel has announced that it has made some changes to its investment plans for the three-year period between 2024 and 2026, due to an increase in uncertainty for the future, with the aim of maintaining its financial strength. These changes will also affect its decarbonization investments.
In the given period, the company will invest JPY 750 billion ($5.23 billion) in its operations, compared to an initial investment target of JPY 950 billion ($6.63 billion). Additionally, due to a shift in the global carbon neutrality trend, it will allocate approximately JPY 150 billion ($1.05 billion) to decarbonize its operations, compared to the initial plan of around JPY 300 billion ($2.09 billion).
In the meantime, Kobe Steel aims to reduce its carbon emissions by 30-40 percent by 2030 compared to 2013 levels, with the ultimate goal of becoming carbon neutral by 2050. To achieve these goals, the company plans to utilize large-scale innovative electric arc furnaces and the ammonia co-firing technology in its blast furnaces starting from 2030 onwards. It also aims to increase its use of scrap, to integrate biomass into its blast furnaces, and to implement energy-efficient processes. Furthermore, it plans to invest JPY 10-20 billion ($70-140 million) to increase its utilization of renewable energy.