Nippon Steel (5401) Investor Day 2026 summary

Strategic vision and carbon neutrality targets

• Aims for carbon-neutral steelmaking by 2050, with a 30% CO2 reduction by 2030 compared to 2013 levels, leveraging both technology development and market creation.

• Pursues a multi-pathway approach: large-scale EAFs, hydrogen reduction in blast furnaces, and hydrogen-based direct reduction.

• Investments exceed ¥860 billion for EAF conversions at key sites, supported by government incentives and tax credits.

• Group-wide CO2 reduction targets set for domestic and overseas operations, with tailored plans per region.

• Advocates for societal and stakeholder cooperation to share the cost and value of decarbonization across the supply chain.

Technology roadmap and innovation

• Commercial operation of pilot EAFs and hydrogen reduction furnaces underway, with full-scale EAFs to be operational by 2029.

• Hydrogen reduction in blast furnaces achieved a 45% CO2 reduction in pilot tests; commercial-scale trials begin in 2026.

• Developing direct reduced iron (DRI) production using hydrogen and low-grade iron ore, targeting industrial-scale readiness by 2040.

• Overcoming technical barriers in EAFs and DRI, such as impurity removal, productivity, and hydrogen supply infrastructure.

• Decarbonization of in-house power generation through efficiency upgrades and transition to non-fossil fuels.

Market creation and policy advocacy

• GX Steel market creation is central, with pricing mechanisms to reflect CO2 reduction value and ensure investment recovery.

• Early demand creation measures include government procurement, CEV subsidies, and incentives for construction and shipbuilding sectors.

• Public sector demand alone is insufficient; further private sector demand stimulation and value chain-wide rule-based measures are needed.

• Mass balance and allocation methods for CO2 reduction are standardized, with guidelines aligned to international standards.

• Active advocacy for regulatory frameworks, international standardization, and incentives to support GX Steel adoption.