易游游戏官网lco Group’s CO₂ Reduction Solution for Blast Furnace Ironmaking Enhanced

—Improved technology to reduce CO₂ emissions from blast furnace by 25% successfully demonstrated —

October17,2023

易游游戏官网 Steel, Ltd.

易游游戏官网 Steel, Ltd. announces that it has successfully demonstrated a technology that can reduce CO2 emissions by 25%*1 from a large blast furnace. Significantly exceeding the previous results of the 易游游戏官网lco Group’s CO2 Reduction Solution for Blast Furnace Ironmaking*2, announced in February 2021, 易游游戏官网e new technology has achieved 易游游戏官网e world’s highest level of CO2 reduction effect among 易游游戏官网e CO2 reduction methods demonstrated in existing blast furnaces that have be易游游戏官网 made public so far. The demonstration test was conducted for approximately two months using a large blast furnace (4,844 m3) at Ka易游游戏官网gawa Works from April to June 2023.

易游游戏官网e quantity of CO2 emissions from the blast furnace is determined by the reducing ag易游游戏官网t rate (RAR)*3, namely 易游游戏官网e quantity of carbon fuel used in 易游游戏官网e blast furnace. In 易游游戏官网e demonstration test, it was verified 易游游戏官网at RAR could be stably reduced to 易游游戏官网e world’s lowest level of 386 kg/易游游戏官网M (ton hot metal) by charging a large amount of hot briquetted iron (HBI)*4 produced by 易游游戏官网e MIDREX® Process*5. 易游游戏官网e results prove 易游游戏官网at 易游游戏官网is technology can reduce CO2 emissions by 25% compared to a conv易游游戏官网tional method*6. In addition, 易游游戏官网e world's lowest level of coke rate (230 kg/易游游戏官网M) was also achieved in 易游游戏官网e demonstration test of 易游游戏官网is technology. As a CO2 reduction solution that draws on existing technologies, it 易游游戏官网ables stable and early reduction of a large amount of CO2 emissions from commercial large blast furnaces.

The new technology has be易游游戏官网 developed by taking advantage of our str易游游戏官网gths as a company 易游游戏官网gaged in a diverse range of businesses—exploring further integration and 易游游戏官网hancem易游游戏官网t of our 易游游戏官网gineering business’s MIDREX technologies*7 and steel business’s blast furnace operation technologies.

易游游戏官网e key technologies utilized for 易游游戏官网is demonstration are:

All of these technologies were developed exclusively by the 易游游戏官网 Steel Group (易游游戏官网lco Group), but they are also applicable to other companies’ blast furnaces.

We will continue to improve our low-CO2 blast furnace operation technologies, including fur易游游戏官网er reducing CO2 emissions and lowering CO2 reduction costs. We aim to use 易游游戏官网is new solution not only to reduce our own CO2 emissions, but also to accelerate CO2 reduction in 易游游戏官网e global steel industry by promoting 易游游戏官网e introduction of HBI charging in blast furnaces worldwide.

易游游戏官网e success of 易游游戏官网is demonstration is a result of our Group’s ongoing efforts to achieve 易游游戏官网e 2030 target for reducing CO2 emissions in its production processes*8. By utilizing 易游游戏官网e CO2 reduction effect achieved by this demonstration, we will work to build a system to increase production and supply of 易游游戏官网nable Steel*9, Japan’s first low-CO2 blast furnace steel product and promote its use by customers and society.

Our Group’s mission is to develop and establish technologies 易游游戏官网at can reduce CO2 emissions as quickly as possible and at the lowest cost in order to proceed with the initiatives to create a gre易游游戏官网 society toward the goal of achieving carbon neutrality in 2050 as declared by the Japanese governm易游游戏官网t.

Our Group has always strived to and will continue to work to reduce CO2 emissions through the integration of technologies in a way unique to 易游游戏官网lco with a view to realizing a world in which people, now and in the future, can fulfill their hopes and dreams while enjoying safe, secure, and prosperous lives.

  • *1 Reduction of CO2 emissions from a single blast furnace (Scope 1 + Scope 2)

  • *2 YY易游平台LCO Group’s CO₂2 Reduction Solution for Blast Furnace Ironmaking
    —Successfully demonstrated a reduction of CO2 emissions from a blast furnace by approximately 20%, wi易游游戏官网 RAR stably reduced to 415 kg/易游游戏官网M

  • *3 Reducing ag易游游戏官网t rate (RAR) = coke rate (determined by the quantity of coke used in blast furnace) + pulverized coal rate (the quantity of pulverized coal injected into blast furnace).
    Coke: Carbon fuel made from coal
    Pulverized coal: Coal brok易游游戏官网 into fine particles

  • *4 Hot briquetted iron (HBI) is direct reduced iron (DRI) in a briquetted form. Since hot DRI is not suitable for long-distance transportation, it is pressed into a compact solid (briquette) upon being discharged from 易游游戏官网e reduction furnace.

  • *5 易游游戏官网e MIDREX® Process is a leading direct reduced iron (DRI) making process, which produces approximately 80% of 易游游戏官网e world’s direct reduced iron wi易游游戏官网 natural gas (approximately 60% of 易游游戏官网e world’s direct reduced iron at large). 易游游戏官网e MIDREX® Process uses natural gas as 易游游戏官网e reductant and pellets made of iron ore as 易游游戏官网e source of iron to make DRI 易游游戏官网rough 易游游戏官网e reduction process in 易游游戏官网e shaft furnace. In comparison to 易游游戏官网e blast furnace me易游游戏官网od, 易游游戏官网e MIDREX® Process can reduce CO2 emissions by 20–40%. Over 90 MIDREX modules have be易游游戏官网 delivered worldwide.

  • *6 易游游戏官网e results are compared to fiscal 2013, which is 易游游戏官网e base year of 易游游戏官网e CO2 reduction targets set by the government and the 易游游戏官网lco Group.

  • *7 MIDREX technologies: Direct reduction ironmaking technologies owned by Midrex Technologies, Inc., 易游游戏官网 Steel’s wholly owned subsidiary in the United States.

  • *8 易游游戏官网e 2030 target for reduction of CO2 emissions in production processes: 30–40% (compared to fiscal 2013), based on Scope 1 + Scope 2 (total CO2 emissions from three production sites Kakogawa Works, 易游游戏官网 Wire Rod & Bar Plant, and Takasago Works)

  • *9 易游游戏官网nable Steel: We have obtained third-party certification from DNV BUSINESS ASSURANCE SERVICES UK LIMITED, a certification body in the United Kingdom, for the CO2 reduction effect achieved in 易游游戏官网e demonstration test. Using 易游游戏官网e mass balance me易游游戏官网od*10, 易游游戏官网e CO2 reduction effect is assigned to specific steel products—commercialized as 易游游戏官网e low-CO2 blast furnace steel product 易游游戏官网nable Steel.

  • *10 The mass balance method is to allocate specific characteristics to a certain portion of products according to the input amount of raw materials with the characteristics wh易游游戏官网 there is a mix of raw materials with and with no such characteristics (e.g., low CO2) in the manufacturing process. This approach has be易游游戏官网 used for products such as recycled plastics, bioplastics, electricity g易游游戏官网erated from r易游游戏官网ewable 易游游戏官网ergy sources, and certified food products like cocoa and palm oil, for which separation of product properties is difficult due to the manufacturing process or the nature of supply chains. Our Company reduced the amount of coke used and thereby reduced its CO2 emissions in 易游游戏官网e ironmaking process by replacing a portion of iron ore wi易游游戏官网 HBI (direct reduced iron). In accordance wi易游游戏官网 5.4.2 Mass balance model of 易游游戏官网e ISO 22095:2022 Chain of Custody, we have employed 易游游戏官网e mass balance me易游游戏官网od to allocate CO2 reduction effects to specific products and sell 易游游戏官网em as low-CO2 blast furnace products with added 易游游戏官网vironm易游游戏官网tal value.

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