Japan: METI unveils draft 7th Strategic Energy Plan, outlining decarb roadmap for steel industry

• Govt to cut GHG emissions by 73% against FY'13
  
  
• Plan to boost investments in steel decarb efforts
  
  

Japan Metal Daily: The Ministry of Economy, Trade and Industry (METI) has unveiled the draft of the 7th Strategic Energy Plan, which includes a comprehensive outlook for Japan's power supply mix by FY'40. The plan underscores the government's commitment to reducing greenhouse gas (GHG) emissions by 73% compared to FY'13 levels.

Notably, the draft plan assigns significant importance to the steel industry's decarbonisation, recognising it as a high-emission sector. The government aims to promote the development and deployment of innovative technologies, such as electric arc furnaces (EAFs), to reduce CO2 emissions during iron ore reduction. This initiative is expected to encourage capital investments in decarbonised facilities, driving the steel industry's transition towards carbon neutrality.

The plan also outlines a power supply mix for FY'40, which includes the expansion of renewable energy sources (approximately 40-50%) and the maximum utilisation of nuclear power (approximately 20%). The remaining share will be allocated to thermal power generation and other energy sources.

Eiji Hashimoto, Chairman and CEO of Japan Steel, welcomed the draft plan, praising its predictability and flexibility. He emphasised the need for the steel industry to respond adaptively to internal and external conditions, citing the European steel industry's deceleration in decarbonisation efforts as a cautionary example.

The 7th Strategic Energy Plan marks a significant step towards Japan's decarbonisation goals, providing a clear roadmap for the steel industry's transition. As the government moves forward with the plan's implementation, it is likely to have a profound impact on Japan's energy landscape and the steel industry's commitment to sustainability.

Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.