JFE, Itochu, Emirates Arkan to study 'green' ironmaking

JFE Steel, Japan's second-largest integrated mill, has agreed with Japanese trader Itochu Corporation and Emirates Steel Arkan, the largest steelmaker in the United Arab Emirates (UAE) to start detailed feasibility studies to establish a 'green' ironmaking venture, the Tokyo-headquartered mill announced on September 1.

The three will supply a form of reduced iron from their so-called Green Ironmaking with Low-carbon Emission venture that is planned to produce 2.5 million tonnes/year of the material in UAE.

A JFE official explained that global supplies of ferrous scrap are expected to be short in future because steelmakers will lift their scrap consumption to reduce their carbon emissions, so the ferrous material supplied by the venture can be sold for use as an alternative and promises low-carbon emissions.

"Emirates Steel has experience and technologies to produce such material through a decarbonizing process," the official said, adding that JFE plans to take about 1 million tonnes of the reduced iron and consume at its works in Japan, and the balance would be sold to users elsewhere in Asia.

The plant will be built in Abu Dhabi and production of the feed material is targeted to start at the venture in the second half of Fiscal 2025 (October 2024-March 2025).

Itochu will be involved in procurement of the high-grade iron ore the venture will need, so three companies "will collaborate on developing solutions of decarbonization amid the accelerating global push toward carbon neutrality," the official said. Total investment by three would reach around Yen 100 billion ($713 million), he added.

"We should be able to use the reduced iron from UAE in our planned new electric-arc-furnace (EAF) in Japan, but also in our existing EAF mills, also blast furnaces or converters," the official added.

JFE plans to replace one of the blast furnaces at the Kurashiki Area of its West Japan Works sometime in 2027-2030 with a large-sized EAF, also to reduce carbon emissions, as reported, though details about this project remain undecided.

Written by Yoko Manabe, yoko.manabe@mysteel.com

This article has been published under an article exchange agreement between Mysteel Global and SteelMint.