Japanese steelmaker Kobe Steel has adjusted its investment plans for the financial period between 2024 and 2026, citing rising global uncertainty and a slowdown in emissions reduction efforts. The company aims to prioritize financial stability and economic rationality in the short term.
Kobe Steel has revised its total investment from approximately 950 billion yen ($6.23 billion) to 750 billion yen ($5.53 billion). As part of this adjustment, its allocation for decarbonization initiatives will be reduced to 150 billion yen ($1.05 billion), down from the originally planned 300 billion yen ($2.09 billion).
Despite scaling back its investments, Kobe Steel remains committed to reducing carbon emissions by 30-40% by 2030, compared to 2013 levels, and achieving carbon neutrality by 2050. To reach these targets, the company plans to implement large-scale electric arc furnaces and ammonia co-combustion technology in blast furnaces by 2030. Additionally, Kobe Steel intends to expand its use of scrap, integrate biomass in blast furnace operations, and adopt energy-efficient processes.
Kobe Steel’s decision reflects broader trends in the steel industry, as other producers, such as Třinecké Železárny in the Czech Republic, also face delays in major decarbonization projects due to economic and regulatory uncertainties.
