Climate activists raise concerns about Nippon Steel's acquisition of U.S. Steel - The Times of Northwest Indiana
Climate activists raise concerns about Nippon Steel’s acquisition of U.S. Steel
Climate activists are raising concerns about Nippon Steel's $14.9 billion acquisition of U.S. Steel and whether it will slow the steel industry's decarbonization.
Both Nippon Steel and U.S. Steel have been pursuing climate reduction goals, including by shifting more production away from coal-fed blast furnaces to electric arc furnaces.
Nippon Steel operates 10 blast furnaces in Japan and will gain eight blast furnaces from U.S. Steel, including six in the United States. Blast furnaces are fueled with coke, a purified form of coal, and are considered to be one of the major sources of carbon emissions worldwide.
The Hague, Netherlands-based SteelWatch, an international group dedicated to the decarbonization of the steel industry, expressed concerns that "Nippon Steel has no plans to end their coal-based blast furnace production."
People are also reading…
SteelWatch said the Japanese steelmaker plans to be running blast furnaces in 2050 at which point new technology would cut emissions by an estimated 50% at most. In the meantime, it will continue to emit carbon in an uncontrolled fashion until new technologies are implemented starting in the 2040s.
The group said the company's carbon emissions of two tons of carbon per ton of steel would be in line with 2.4 degrees of global warming for decades.
“Within Japan, Nippon Steel portray themselves as an industry leader and innovator, even on decarbonization. The reality is so very different. They are doubling down on coal-based blast furnaces production and have shoddy inadequate targets for 2050,” said Caroline Ashley, director of SteelWatch. “It will set back global decarbonization if they export this coal-addiction and backwards-facing mindset to their new U.S. operations.”
SteelWatch said Nippon Steel has blocked climate policies like carbon pricing in Japan, has not developed a timeline for using cleaner direct reduced iron and has not looked at using green hydrogen in conjunction with direct reduced iron.
Nippon Steel said in a news release it will have reduced carbon emissions by 30% as compared to 2013. SteelWatch said that's largely the result of the steelmaker shuttering blast furnaces because of declines in demand.
NWI Business Ins and Outs: Tethan's Candy & Confections, Next Level Events and Duneland Pottery open
NWI Business Ins and Outs: Jet's Pizza and vegan restaurant open; Chase Bank closes; Crown Point Toys and Collectibles moves
The United Steelworkers union was told not to expect any changes after Nippon Steel buys U.S. Steel for $14.9 billion but still has many unanswered questions, including how committed the new owner is to making steel in America.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”