Japan: Tokyo Steel unveils Almost Zero green steel, eyes carbon neutrality

Japan Metal Daily: Tokyo Steel, a leading steel manufacturer, has introduced Almost Zero, a green steel material designed to significantly reduce carbon emissions. The company unveiled its new product at an online sustainability briefing, alongside its long-term environmental vision, 'Eco Vision 2050'.

Almost Zero is a low-carbon steel product that utilises non-fossil fuel certificates to offset carbon emissions from electricity used in steel production. The company has priced the product at an additional 6,000 yen/tonne (t), a move that has generated significant interest from potential customers.

To achieve its ambitious sustainability goals, Tokyo Steel is actively pursuing renewable energy sources. The company has plans to increase the number of solar power plants at its Japanese facilities to a total of 17 megawatts by this summer. While the generated electricity is currently consumed internally, the company acknowledges the need for further expansion to meet its growing energy demands.

To address this challenge, Tokyo Steel is collaborating with electric power companies to implement Demand Response (DR) programs. By optimising electricity usage during periods of high renewable energy generation, the company aims to reduce its reliance on fossil fuels and contribute to the overall decarbonisation of the energy grid. Beyond internal initiatives, Tokyo Steel is also exploring partnerships with other industries to leverage surplus renewable energy. The company is considering off-site Power Purchase Agreements (PPAs) and Virtual Power Purchase Agreements (VPPAs) to source renewable energy from external sources.

The additional JPY 6,000 pricing for Almost Zero is not fixed and will be adjusted based on fluctuations in CO2 prices and changes in the amount of renewable energy procured. Tokyo Steel emphasises the importance of open dialogue with customers to determine the appropriate pricing and facilitate the transition to a more sustainable steel industry.

President Nobuaki Nara of Tokyo Steel highlighted the company's commitment to addressing social issues related to resource recycling and decarbonisation. He emphasised the need for collaboration and partnerships to tackle the global challenge of climate change. By expanding its circle of influence and working with various stakeholders, Tokyo Steel aims to accelerate the adoption of sustainable steel production practices.

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