Japan’s Kobe Steel has initiated formal evaluations to add a 700,000-ton annual capacity scrap melting furnace at its Kakogawa Steel Works. This project requires an estimated investment of 100 billion yen.

A final investment conclusion will take place during the next medium-term management plan period, starting in fiscal year 2027. Approximate operations are projected for the early 2030s.

The technology enables a mixed molten metal method, combining melted scrap steel with traditional blast furnace hot metal inside the converter. This process significantly increases scrap utilization, curtails reliance on traditional blast furnace outputs, and lowers carbon dioxide emissions.

The approach preserves existing equipment compatibility while satisfying growing consumer requests for green steel products. This multi-pronged decarbonization strategy works with biomass injection and electric arc furnace technologies.