The Japanese government’s budget for the next fiscal year includes an additional support for the Green Innovation (GI) fund project of JPY 456.4 billion ($3.4) to utilise hydrogen in steel. The upper budget for the project is JPY 193.5 ($1.45) billion for over about 10 years.
The GI fund will be promoted according to the development themes such as the use of hydrogen in the existing blast furnace, the use of hydrogen in the direct reduction steelmaking process and the production technology of high-grade steel using a large electric furnace. Moreover, the three major blast furnace companies promoting the project pointed out that an increase in budget was needed.
The budget allocated for technical development of steel and non-ferrous metals is JPY 2.4 billion for the next fiscal year. The budget allocated for the development of materials for aircraft engines and the development of systems for recycling resources is JPY 1.2 billion each.
The supplementary budget for the current fiscal year is JPY 958.2 ($7.19) billion, based on the Act to Promote Economic Security for the Stable Supply of Certain Essential Goods. Of this amount, JPY 25.3 ($0.18) billion is for permanent magnets which is intended to support the introduction of production facilities and recycling facilities, as well as research and development expenses that will lead to a reduction in the use of rare earths, the raw materials for permanent magnets.
To qualify for government support, the companies must submit a plan to ensure stable supply based on the government’s policy for initiatives. Once approved by the Minister of Economy, Trade and Industry (METI), the support will be implemented.
Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.
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