Japan’s biggest steelmaker is considering a major investment in a green steel project powered by hydrogen as a global push to decarbonize one of the world’s most polluting industries gathers pace.
Nippon Steel is exploring a project outside its home market that may cost an estimated ¥100 billion ($733 million) or more, according to Takahiro Mori, executive vice president who oversees global operations. Australia and Brazil are among possible sites, where high-grade iron ore is accessible along with cheaper electricity than in Japan, he said in an interview.
Steel is one of the building blocks of the global economy — needed for infrastructure, autos and appliances — and while demand is set to go on rising, producers are exploring ways to cut their carbon footprints. The industry is one of biggest polluters as it currently relies on coal-fired blast furnaces, particularly in Asia, which accounts for more than 70% of global output.