JFE Steel orders EAF from Danieli in first major switch from blast furnace technology

  • 2 mnt EAF will start operations in CY’28
  • Second BF in Kurashiki to be replaced with EAF

Japan Metal Daily: Danieli, an Italian steel plant manufacturer, has received an order from JFE Steel for one electric furnace for the Kurashiki area of the West Japan Steel Works (Kurashiki City, Okayama Prefecture). Since it is the first large-scale electric furnace in Japan to switch from blast furnace equipment for the purpose of decarbonisation, the industry has been paying attention as to which operator will receive the order.

The facility is expected to incorporate advanced technologies for high-grade steel manufacturing and automation, and is expected to start operations in FY’28.

‘Innovative arc furnace’

The contact point for the order was Danieli Engineering Japan, a Japanese corporation. In addition to the new electric arc furnace, the company will also supply out-of-furnace refining equipment for the post-process and the Q-ONE power supply system for electric arc furnaces that prevents voltage fluctuations (flicker) and is effective in saving energy.

JFE plans to create an “innovative electric arc furnace” capable of mass-producing high-quality, high-performance steel. In the competitive bidding conducted by the company, Danieli’s advanced technology, overseas order record, and price advantage are believed to have been highly evaluated.

Decarbonisation journey

In April of this year, JFE officially decided to convert one blast furnace to an electric furnace in the Kurashiki area. The electric arc furnace has one of the largest production capacities in the world, 2 million tonnes (mnt) per year, and the introduction plan has already been announced, with the operation period scheduled for April-June 2028.

With the aim of decarbonising the steelmaking process, the second blast furnace in the area (with an internal volume of 4,100 cubic metres) will be shut down and production will be switched to an electric furnace that can reduce carbon dioxide (CO2) emissions.

According to JFE, the scale of investment in the Kurashiki Innovative Electric Reactor Construction Project will total JPY 329.4 billion, including related equipment other than the reactor itself. Of this, up to JPY 104.5 billion will be provided by the government.

Danieli did not disclose the value of the order. The company is developing electric furnaces under the brand name ‘Digimelter’, and this machine will be equipped with a wealth of unique automation technology.

Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and BigMint.


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