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Nippon Steel to invest in green transformation at three plants: USD 6 billion to be spent

Nippon Steel, one of Japan's largest steelmakers, announced plans to invest about JPY 870 billion (about USD 6.05 billion) to install electric arc furnaces (EAFs) at three domestic mills to reduce carbon emissions.

Nippon Steel to invest in green transformation at three plants: USD 6 billion to be spent

The Japanese government plans to provide JPY 251 billion (around USD 1.75 billion) in subsidies to support this transformation process, the company announced in a statement. With the government support, Nippon Steel will accelerate its efforts to achieve its green production targets by fiscal 2029.

The electric furnaces to be installed as part of the investment are expected to significantly reduce the carbon footprint of steel production. With these investments, the company aims to commission an additional production capacity of approximately 2.9 million tons.

Electric arc furnaces offer lower emission production compared to conventional blast furnaces, while supporting environmental sustainability through the utilization of scrap steel. These investments will strengthen Nippon Steel's ambition for low-carbon steel production in both the domestic and global market.

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