Japanese steel giant Nippon Steel announced that it will launch sales of NSCarbolexTM Neutral, a steel product that is certified as reducing CO2 emissions in the steelmaking process, in the first half of fiscal 2023. NSCarbolexTM Neutral is a steel product that is certified as reducing CO2 emissions in the steelmaking process by allocating CO2 emissions that Nippon Steel has reduced in-house through these measures. With the rapid growth of decarbonization needs in society, we assume that for our customers, delays in decarbonization can be a factor in losing competitiveness. By quickly establishing a stable supply structure for NSCarbolexTM Neutral, Nippon Steel will contribute to decarbonization at its customers. Through research and development, Nippon Steel is working to reduce CO2 emissions by commercializing advanced and innovative manufacturing processes and will apply these results to the supply of NSCarbolexTM Neutral. In the near term, we plan to take advantage of the CO2 emission reduction effects of the new electric furnace in the Setouchi Works Hirohata Area, scheduled to start commercial operation within 2022, and we also plan to progressively take advantage of the effects of other CO2 emissions reduction measures to expand the supply volume of NSCarbolexTM Neutral. Nippon Steel has set forth the Nippon Steel Carbon Neutral Vision 2050 and is working to reduce CO2 emissions as its most important management issue. As a certification method of reducing CO2 emissions, we are considering adopting a method (the mass balance method) in which the total amount of CO2 emissions that Nippon Steel has actually reduced by reforming and improving manufacturing processes, etc. is determined and allocated to any given steel product. The steel industry has significant CO2 emissions in upstream processes (blast furnaces, etc.), which are essential for the manufacture of various steel products, and it is expected to take time to develop decarbonization technologies. However, the use of this method will enable us to respond quickly to customer needs for steel products with reduced CO2 emissions. In addition, unlike the procurement of CO2 emission allowances through emissions trading, this method is based on the actual reduction of CO2 emissions through process reform and improvement by steelmakers themselves and is therefore gaining attention and becoming more widespread as a method for promoting CO2 emissions reduction. In addition to the CO2 emission reduction certificate issued by Nippon Steel, NSCarbolexTM Neutral will be provided with a third-party certificate to ensure impartiality. We plan to use JIC Quality Assurance Ltd. (JICQA) as a certifying organization and have already confirmed validation of the mass balance method.
Japanese steel giant Nippon Steel announced that it will launch sales of NSCarbolexTM Neutral, a steel product that is certified as reducing CO2 emissions in the steelmaking process, in the first half of fiscal 2023. NSCarbolexTM Neutral is a steel product that is certified as reducing CO2 emissions in the steelmaking process by allocating CO2 emissions that Nippon Steel has reduced in-house through these measures. With the rapid growth of decarbonization needs in society, we assume that for our customers, delays in decarbonization can be a factor in losing competitiveness. By quickly establishing a stable supply structure for NSCarbolexTM Neutral, Nippon Steel will contribute to decarbonization at its customers. Through research and development, Nippon Steel is working to reduce CO2 emissions by commercializing advanced and innovative manufacturing processes and will apply these results to the supply of NSCarbolexTM Neutral. In the near term, we plan to take advantage of the CO2 emission reduction effects of the new electric furnace in the Setouchi Works Hirohata Area, scheduled to start commercial operation within 2022, and we also plan to progressively take advantage of the effects of other CO2 emissions reduction measures to expand the supply volume of NSCarbolexTM Neutral. Nippon Steel has set forth the Nippon Steel Carbon Neutral Vision 2050 and is working to reduce CO2 emissions as its most important management issue. As a certification method of reducing CO2 emissions, we are considering adopting a method (the mass balance method) in which the total amount of CO2 emissions that Nippon Steel has actually reduced by reforming and improving manufacturing processes, etc. is determined and allocated to any given steel product. The steel industry has significant CO2 emissions in upstream processes (blast furnaces, etc.), which are essential for the manufacture of various steel products, and it is expected to take time to develop decarbonization technologies. However, the use of this method will enable us to respond quickly to customer needs for steel products with reduced CO2 emissions. In addition, unlike the procurement of CO2 emission allowances through emissions trading, this method is based on the actual reduction of CO2 emissions through process reform and improvement by steelmakers themselves and is therefore gaining attention and becoming more widespread as a method for promoting CO2 emissions reduction. In addition to the CO2 emission reduction certificate issued by Nippon Steel, NSCarbolexTM Neutral will be provided with a third-party certificate to ensure impartiality. We plan to use JIC Quality Assurance Ltd. (JICQA) as a certifying organization and have already confirmed validation of the mass balance method.
