Jfe Holdings, Inc. · TSE:5411

Jfe — ESG Presentation (May 2021)

51 slides from Jfe's sustainability presentation, May 25, 2021

Slide 3: JFE Group Environmental Vision for 2050: Towards Carbon Neutrality
SDGs JFE Group Environmental Vision for 2050 Towards Carbon Neutrality  Climate change is an extremely important issue from the perspective of business continuity.  Global climate-change issues, such as increasingly abnormal weather, must be addressed urgently. 2020 was the starting point for resp
Slide 4: JFE Group Environmental Vision for 2050: Towards Carbon Neutrality
SDGs JFE Group Environmental Vision for 2050 Towards Carbon Neutrality (Group‐wide investment in GX in the 7th Medium‐term Business Plan: 340 billion yen) R&D, etc. 50 billion yen ST CAPEX for electrical steel sheet in Kurashiki 49 billion yen EN monopile approx. 40 billion yen ST: JFE Steel 1. 7th
Slide 5: Initiatives in Carbon Neutrality by 2050
Initiatives in Carbon Neutrality by 2050 Steel business: Reduce CO₂ emissions in FY2024 by 18% vs. FY2013 Drive JFE’s carbon neutrality by decarbonizing steel processes, etc. GX investment in steel business: 160 billion yen over 4 years Engineering business: Support carbon neutrality in society thro
Slide 8: Steel Manufacturing Process
Steel Manufacturing Process Scrap Cokes Coke Oven Sintered Ore Coking coal Large 1.35 billion t/year Ship Wharf 1.28 billion t/year Pig Iron Sintering Machine Blast Iron Ore Converter Furnace Continuous Casting Machine Scrap Pellet Plant Iron Ore 1.87 billion t/year 0.11 billion t/year 0.52 billion
Slide 9: CO₂ Emissions in Steelmaking
CO₂ Emissions in Steelmaking Blast furnace and converter method: Carbon (reducing material) used to remove oxygen from iron oxide in iron ore Combustion of carbon (heat resource) provides heat to melt iron →More CO₂ generated compared to direct‐reduction or electric‐arc‐furnace methods *1 JFE Group
Slide 10: CO₂ Emissions in Steelmaking (Blast furnace and converter method)
CO₂ Emissions in Steelmaking (Blast furnace and converter method)  14% of domestic CO₂ emissions come from steel manufacturing  CO₂ reduction in ore reduction process is important to achieve carbon neutrality Ratio of CO₂ emissions from steel manufacturing processes (t‐CO2/t‐crude steel) Most (ove
Slide 11: Outlook for Global Steel Production and Accumulation
Outlook for Global Steel Production and Accumulation  Demand for crude steel will increase  Obsolete scrap will also increase, but not enough to meet steel demand  Constant supply of pig iron is essential for supply of high‐performance steel products Pig iron and crude steel production and scrap
Slide 12: Advantages and Problems of Current Steelmaking Process
Advantages and Problems of Current Steelmaking Process Each method has advantages and disadvantages that require multi‐track technological development. Blast furnace Electric arc furnace Direct reduction High‐purity ore pellets Sintered Coke ore Scrap Byproduct gas Electricity Byproduct gas Reduced
Slide 13: Roadmap to Carbon Neutrality in 2050
Roadmap to Carbon Neutrality in 2050 • Accelerate research and development for early establishment of new technologies • Adopt multi‐track approach to develop super‐innovative technologies, focusing on carbon recycling blast furnace + CCU and hydrogen ironmaking (direct reduction) • Maximize utiliza
Slide 15: Carbon-recycling Blast Furnaces
Carbon‐recycling Blast Furnaces • To maximize the blast furnace method for mass, high‐efficiency production, including for high‐grade steel, technologies for reducing CO₂ emissions from blast furnaces are vital. • Combining carbon‐recycling blast furnaces with carbon dioxide capture, utilization and
Slide 16: Concept of Carbon-recycling Blast Furnace
Concept of Carbon‐recycling Blast Furnace CO₂ Reuse of carbon Green hydrogen (Maximize benefits of carbon) Blast furnace process Methanation Carbon‐recycling Blast Furnace CO₂ from blast furnaces is converted into carbon‐neutral reductant (methane) by using hydrogen, thereby replacing coal‐derived r
Slide 17: Carbon-recycling Blast Furnace and Carbon Cycle (CCU)
Carbon‐recycling Blast Furnace and Carbon Cycle (CCU*)  Carbon recycling maximized in blast furnace to reduce CO₂ emissions  CO₂ emissions minimized through society‐wide carbon recycling of excess CO₂ Renewable energy, etc. Green hydrogen Using surplus CO₂ H2 Replace conventional petrol‐based chem
Slide 18: CO₂ Emissions Reduction Using Carbon-recycling Blast Furnace
CO₂ Emissions Reduction Using Carbon‐recycling Blast Furnace  CO₂ generated from blast furnace is converted to methane and used repeatedly as reducing material.  CO₂ emissions are reduced by replacing coke with carbon‐neutral methane as the reducing material. Blast furnace gas CO2 CO H2 Effective
Slide 19: Overview of Methanation Technology
Overview of Methanation Technology  Methanation: Technology for using green hydrogen to convert CO₂ (blast furnace exhaust gas) into methane (carbon‐neutral reducing material)  Key CCU technology expected to help realize carbon‐neutral society H2 Heat‐transfer oil Heat‐transfer oil cooler Cooling
Slide 20: Effectiveness of Oxygen Blast Furnace (1)
Effectiveness of Oxygen Blast Furnace (1) An oxygen blast furnace can maximize the amount of methane blown in by heating carbon‐neutral methane with combustion heat that conventionally is used to heat nitrogen gas. Challenge Need to develop an all‐new technology to reduce CO₂ emissions by blowing in
Slide 21: Effectiveness of Oxygen Blast Furnace (2)
Effectiveness of Oxygen Blast Furnace (2) Zeroing out nitrogen in blast furnace gas reduces amount of exhaust gas by about ½, and increasing CO₂ concentration enables CO₂ separation process to be downsized since less energy is required Challenge • Interlock operation with large‐scale methanation fac
Slide 22: High-efficiency CCU Methanol Production Technology
High‐efficiency CCU Methanol Production Technology Application in carbon‐recycling blast furnaces with CCU for CO₂ emissions reduction currently is jointly being developed by JFE and Research Institute of Innovative Technology for the Earth (RITE). New type of reactor for CCU methanol synthesis uses
Slide 23: Roadmap for Developing Carbon-recycling Blast Furnace and Technology
Roadmap for Developing Carbon‐recycling Blast Furnace and Technology Conduct elemental technology development and small‐scale testing for both carbon‐recycling blast furnaces and CCU methanol synthesis, targeting completion of proof‐of‐principle process by 2027 2020 Proof of principle to be 2030 com
Slide 25: Effectiveness of Hydrogen-reduction Technology
Effectiveness of Hydrogen‐reduction Technology  Oxygen is removed from iron ore in a reduction furnace to produce reduced iron (Fe), which is then melted in an electric arc furnace.  The amount of CO₂ generated with the current direct‐reduction method is about 1/2 that of the blast furnace method.
Slide 26: Problems and Solutions for Hydrogen Reduction (1): Endothermic Reaction
Problems and Solutions for Hydrogen Reduction (1): Endothermic Reaction Problem Endothermic reaction inhibits reduction (Hydrogen reduction causes endothermic reaction) Solution Develop raw material preheating and hydrogen heating technology Problem Solution Endothermic reaction inhibit reduction ・D
Slide 27: Problems and Solutions for Hydrogen Reduction (2): Limited Raw Materials
Problems and Solutions for Hydrogen Reduction (2): Limited Raw Materials Problem High‐grade raw materials are produced in limited quantities and difficult to obtain. Solution Expand sourcing through collaboration with raw material supplier (BHP*) Problem Solution Currently, direct reduction can only
Slide 29: Production of High-grade Steel in Electric Arc Furnace Process
Production of High‐grade Steel in Electric Arc Furnace Process ・Steel products are manufactured by melting steel scrap and direct‐reduced iron in an electric arc furnace. ・The resulting CO₂ amount is about 1/4 that generated by the blast furnace‐converter method. ・CO₂ emissions should be reducible t
Slide 30: Electric Arc Furnace Process: Problem and Solution (1)
Production of High‐grade Steel in Electric Arc Furnace Process: Problem and Solution (1) Improve productivity of electric arc furnaces, currently 30% less than that of Problem blast furnace‐converters Reduce electric power intensity Solution High‐speed, high‐efficiency melting technology for use in
Slide 31: Electric Arc Furnace Process: Problem and Solution (2)
Production of High‐grade Steel in Electric Arc Furnace Process: Problem and Solution (2) Problem Quality constraints for products with electric arc furnaces (Many steel types are difficult to manufacture in terms of quality) Solution Technology to remove impurities and detoxify impurities Problem So
Slide 33: Technology for Scrap Use in Converters
Technology for Scrap Use in Converters Problem Need more robust melting technology to increase use of scrap in converters (1) Design and engineer larger and more durable burners for use in large converters Solution (2) Utilize carbon‐free fuels (hydrogen or carbon‐recycled methane) to reduce CO₂ emi
Slide 35: Summary of Process Development
Summary of Process Development Accelerate R&D for (1) blast furnace technology, (2) direct‐reduction technology, (3) electric arc furnace technology and (4) conventional technology → Develop innovative technologies multilinearly, aiming to achieve carbon neutrality Blast • Carbon‐recycling blast fur
Slide 37: Eco-products: JFE's Electrical Steel Sheets Strategy
Eco‐products: JFE’s Electrical Steel Sheets Strategy JFE Steel JFE Shoji Electrical steel Electrical core World's No. 1 global distribution sheet Expand supply system for highly processing and and processing system for manufacturing value‐added electrical steel sheets distribution electrical steel s
Slide 38: Eco-products: Strategy for Electrical Steel Sheets in Japan
Eco‐products: Strategy for Electrical Steel Sheets in Japan 海外 Japan Total Approx. 49 billion yen Expand manufacturing facilities for investment non‐oriented electrical steel sheet (N/O)* *Announced on April 1, 2021 Operation start First half of FY2024 Increase capacity of West Japan Works (Kurashik
Slide 39: Eco-Products: Overseas Strategy for Electrical Steel Sheets
Eco‐Products: Overseas Strategy for Electrical Steel Sheets Overseas MOU with JSW of India to study 2009 Signed strategic comprehensive agreement feasibility of electrical steel sheet JV* 2012 Licensed manufacturing technology for non‐oriented *Announced on May 7, 2021 electrical steel sheets (N/O)
Slide 40: Carbon Neutrality Initiatives in Engineering and Trading Businesses
Carbon Neutrality Initiatives in Engineering and Trading Businesses Copyright © 2021 JFE Holdings ,Inc. All Rights Reserved. 40
Slide 41: Commercialization of Offshore Wind-power Business
Commercialization of Offshore Wind‐power Business • By commercializing our manufacturing of foundation structures (monopiles), we will become the forerunner in the business of offshore wind-power generation and establish a supply chain across the entire group, including foundation manufacturing and
Slide 42: Offshore Wind Demand and Monopile Market Trends
Offshore Wind Demand and Monopile Market Trends Offshore wind power has been introduced mainly in Europe and China (24 GW as of 2018), but significant growth is expected in Asian countries (including Japan) and North America. Total installed offshore wind power (GW) Source: "Future of Wind," IRENA (
Slide 43: JFE Engineering's Initiatives: Study Monopile Production
JFE Engineering’s Initiatives: Study Monopile Production Study of monopile foundation‐structure manufacturing Approx. size of main machine (12MW class) Establish monopile plant, first of its kind in Japan, deploying technologies for designing offshore structures, processing and Strategy welding larg
Slide 44: JFE Steel Initiatives: Expand Large-scale Heavy-duty Plate Production Capacity
JFE Steel Initiatives: Expand Large‐scale Heavy‐duty Plate Production Capacity Larger wind turbines to reduce power costs require larger foundation structures ⇒ Contribute to offshore wind power business with large, thick, high‐quality cross‐section plates manufactured from world top‐class continuou
Slide 45: O&M Using Group Resources
O&M Using Group Resources Lifecycle cost structure for seabed‐fixed offshore wind turbines (European case: METI‐Mitsubishi Research Institute data) Manufacture of Manufacture Electrical Removal R&D wind turbines of foundation system Installation 2.9% structure 7.7% 15.5% 23.8% 6.7% O&M market size:
Slide 46: Contributions to CO₂ Reduction through Engineering Business
Engineering Business Contributions to Carbon Neutrality Contributions to CO₂ Reduction through Engineering Business Renewable Energy Carbon Recycling  Biomass, geothermal, solar, offshore wind  Conversion of CO₂ into synthesis gas and power (through group synergies), etc. chemical products  Waste
Slide 47: JFE Engineering's Support of Local Production for Local Consumption
JFE Engineering’s Support of Local Production for Local Consumption Support local energy production for local consumption (independent and decentralized) and regional carbon neutrality through biogas power generation from food waste and expansion of regional power producers and suppliers (PPS)* Sapp
Slide 48: Trading Business Contributions to Carbon Neutrality
Trading Business Contributions to Carbon Neutrality Leverage global network and corporate resources for carbon neutrality within JFE group and society JFE Shoji JFE JFE Steel Engineering Reduce CO₂ emissions Facilitate wider use in steel business of renewable energy Collaborate with JFE Steel Scrap
Slide 50: Proposals to Society
Proposals to Society JFE’s key business concern is developing carbon‐neutral steelmaking, but many other issues also must be resolved. Costs of Achieving Carbon‐neutral Steel  Massive research and development costs ⇨ Approximately 100 billion yen by 2030 and more by 2050 (will require maximum use o
Slide 51: Please do not reproduce, reprint, or upload this document to a website without permission.
This document is not a disclosure document under the Financial Instruments and Exchange Act, and the accuracy and completeness of the information is not guaranteed. In addition, the forecasts and other information presented are based on information available at the time of the briefing and include u

JFE Holdings — ESG Presentation (May 2021) on 6ix

Jfe — ESG Presentation (May 2021)

Slide 1: JFE Holdings, Inc.

Slide 2: Outline of JFE Group Environmental Vision for 2050

Slide 3: JFE Group Environmental Vision for 2050: Towards Carbon Neutrality

Slide 4: JFE Group Environmental Vision for 2050: Towards Carbon Neutrality

Slide 5: Initiatives in Carbon Neutrality by 2050

Slide 6: Steel-business Initiatives for Carbon Neutrality

Slide 7: Outline of Steelmaking Process

Slide 8: Steel Manufacturing Process

Slide 9: CO₂ Emissions in Steelmaking

Slide 10: CO₂ Emissions in Steelmaking (Blast furnace and converter method)

Slide 11: Outlook for Global Steel Production and Accumulation

Slide 12: Advantages and Problems of Current Steelmaking Process

Slide 13: Roadmap to Carbon Neutrality in 2050

Slide 14: Carbon-recycling Blast Furnace Technology Development

Slide 15: Carbon-recycling Blast Furnaces

Slide 16: Concept of Carbon-recycling Blast Furnace

Slide 17: Carbon-recycling Blast Furnace and Carbon Cycle (CCU)

Slide 18: CO₂ Emissions Reduction Using Carbon-recycling Blast Furnace

Slide 19: Overview of Methanation Technology

Slide 20: Effectiveness of Oxygen Blast Furnace (1)

Slide 21: Effectiveness of Oxygen Blast Furnace (2)

Slide 22: High-efficiency CCU Methanol Production Technology

Slide 23: Roadmap for Developing Carbon-recycling Blast Furnace and Technology

Slide 24: Development of Technology for 100% Direct Hydrogen Reduction

Slide 25: Effectiveness of Hydrogen-reduction Technology

Slide 26: Problems and Solutions for Hydrogen Reduction (1): Endothermic Reaction

Slide 27: Problems and Solutions for Hydrogen Reduction (2): Limited Raw Materials

Slide 28: Development of Electric Arc Furnace Process Technology

Slide 29: Production of High-grade Steel in Electric Arc Furnace Process

Slide 30: Electric Arc Furnace Process: Problem and Solution (1)

Slide 31: Electric Arc Furnace Process: Problem and Solution (2)

Slide 32: Technology for Using Scrap in Converters

Slide 33: Technology for Scrap Use in Converters

Slide 34: Development of Process for Achieving Carbon Neutrality

Slide 35: Summary of Process Development

Slide 36: Eco Products (Electrical Steel Sheets Strategy)

Slide 37: Eco-products: JFE's Electrical Steel Sheets Strategy

Slide 38: Eco-products: Strategy for Electrical Steel Sheets in Japan

Slide 39: Eco-Products: Overseas Strategy for Electrical Steel Sheets

Slide 40: Carbon Neutrality Initiatives in Engineering and Trading Businesses

Slide 41: Commercialization of Offshore Wind-power Business

Slide 42: Offshore Wind Demand and Monopile Market Trends

Slide 43: JFE Engineering's Initiatives: Study Monopile Production

Slide 44: JFE Steel Initiatives: Expand Large-scale Heavy-duty Plate Production Capacity

Slide 45: O&M Using Group Resources

Slide 46: Contributions to CO₂ Reduction through Engineering Business

Slide 47: JFE Engineering's Support of Local Production for Local Consumption

Slide 48: Trading Business Contributions to Carbon Neutrality

Slide 49: Carbon Neutrality Proposals to Society

Slide 50: Proposals to Society

Slide 51: Please do not reproduce, reprint, or upload this document to a website without permission.