Kobe Steel has revised its investment strategy for the 2024–2026 period, scaling back its decarbonization spending in response to growing global economic uncertainty. The decision reflects the Japanese steelmaker’s focus on preserving financial stability while navigating evolving environmental and market conditions.

Investment Plans Reduced by ¥200 Billion

The company will now invest ¥750 billion ($5.23 billion) over the three years, a significant cut from its initial projection of ¥950 billion ($6.63 billion). Notably, the firm’s decarbonization budget has been halved, with ¥150 billion ($1.05 billion) now allocated, down from ¥300 billion ($2.09 billion) in the original plan.

Climate Goals Remain in Sight

Despite the cutbacks, Kobe Steel remains committed to its long-term environmental targets:

• 30–40% reduction in CO₂ emissions by 2030, compared to 2013 levels
• Carbon neutrality by 2050

Technologies & Strategies on the Horizon

To reach these goals, Kobe Steel is planning to:

• Adopt large-scale electric arc furnaces (EAFs) and ammonia co-firing technology in blast furnaces starting from 2030
• Increase use of steel scrap
• Integrate biomass into blast furnace operations
• Enhance energy efficiency throughout its production processes

Additionally, it will invest ¥10–20 billion ($70–140 million) to expand renewable energy usage within its operations.