Japan: Tokyo Steel launches near-zero emissions steel for domestic market

• The steel brand, ‘Almost Zero’, has a CO2 intensity of 0.1 t
• Company sets JPY 6,000/t ($37) premium for new brand
• Premium based on potential carbon prices in the developed world

Tokyo Steel Co., Ltd. has announced the launch of its new green steel brand ‘Almost Zero’ recently. This initiative aims to significantly reduce CO2 emissions during steel production, setting a new standard in the industry. The new brand promises to cut emissions from 0.4 tonnes (t) of CO2 per tonne of steel to 0.1 t, demonstrating Tokyo Steel’s commitment to environmental sustainability and innovation.

New era of low-carbon steel

The ‘Almost Zero’ brand covers all products manufactured at Tokyo Steel’s four plants in Japan. Utilising the characteristics of electric furnace materials, the company has managed to keep the additional cost at just JPY 6,000/t, making green steel a financially viable option. This initiative has received validation from Socotec Certification Japan, the subsidiary of the French third-party organisation, ensuring the scheme’s credibility.

Significant reduction in emissions

Historically, Tokyo Steel’s electric furnace steel products reduced CO2 emissions to 0.4 t/. The new approach reduces this further to 0.1 t, primarily by producing electricity that is substantially non-fossil. This aligns with the GHG Protocol’s Scope 2 (indirect emissions) standards, reflecting the company’s rigorous environmental standards. Furthermore, CO2 emissions from non-fossil fuel certificates can be incorporated into customers’ Scope 3 calculations, enhancing the overall sustainability profile.

Compliance with international standards

The non-fossil fuel certificates for ‘Almost Zero’ steel are mainly derived from solar power generation, including FIT-tracking certificates. This compliance with international initiatives like RE100 ensures “additionality” and “traceability”, bolstering the brand’s credibility. Additionally, Tokyo Steel plans to utilise electricity generated through the ‘Demand Response’ initiative with Kyushu Electric Power Co., aiming to adjust electricity supply and demand, further contributing to renewable energy usage.

Pricing strategy

The pricing of JPY 6,000/t is based on the carbon price and non-fossil fuel certificate purchase fees projected for developed countries by 2030, according to the International Energy Agency’s net-zero emissions scenario (NZE scenario). This approach ensures that Tokyo Steel’s green steel remains competitively priced while supporting global decarbonisation efforts.

Certification and customer assurance

Customers purchasing ‘Almost Zero’ steel will receive an ‘almost zero certificate’ within two months of shipment, verifying the product as a green steel product. Tokyo Steel plans to use CFP (carbon footprint) calculations and third-party verifications annually to ensure the accuracy and integrity of these certifications.

Industry impact and future prospects

Yuji Komatsuzaki, Director, Managing Executive Officer, and General Manager of the Sales Division of Tokyo Steel, emphasised the societal significance of ‘Almost Zero’, expressing hope that it will attract customers dedicated to carbon neutrality. Executive Officer Soichiro Tsuda highlighted the appeal of offering green steel options as an electric furnace manufacturer, committing to continue efforts in this direction.

This article, which originally appeared in Japan Metals Daily, is published as part of an article-sharing agreement with BigMint.