JFE Steel & Mitsubishi to launch demonstration project in Japan

JFE Steel Corporation (Headquarters: Chiyoda-ku, Tokyo; President: Masayuki Hirose, hereinafter referred to as "JFE Steel"), Mitsubishi Gas Chemical Company, Inc. (Headquarters: Chiyoda-ku, Tokyo; President: Masashi Fujii, hereinafter referred to as "Mitsubishi Gas Chemical"), and Mitsubishi Chemical Corporation (Headquarters: Chiyoda-ku, Tokyo; Representative Directors: Yasuo Shimodaira and Nobuo Fukuda, hereinafter referred to as "Mitsubishi Chemical")—collectively referred to as "Three Companies"—have signed a Memorandum of Understanding (MOU) concerning a demonstration project (hereinafter referred to as "the Demonstration Project") at the Mizushima Complex (Kurashiki City, Okayama Prefecture). The project aims to produce methanol from by-product gases emitted during steel manufacturing processes and further utilize the methanol to produce propylene, a key raw material for plastics.

The Demonstration Project is slated to begin in FY2026. JFE Steel will supply by-product gases generated in the steel manufacturing process to Mitsubishi Gas Chemical, which will conduct demonstrations of methanol production using these gases as raw material at a new demonstration plant to be constructed. Mitsubishi Chemical will utilize this methanol to evaluate the compatibility with their propylene production technology (DTP) at its existing demonstration facilities and consider applications for other chemical products.

Reducing greenhouse gas (GHG) emissions in the industrial sector is a critical societal issue in addressing climate change. In the steel industry, efforts to cut CO2 emissions in steel manufacturing processes include developing cutting-edge technologies, such as ultra- innovative blast furnaces and large-scale high-efficiency electric arc furnaces, and exploring CCUS (Carbon Capture, Utilization, and Storage).

Methanol, a key basic chemical, can be synthesized from captured CO2 and other sources. It has gained attention as a next- generation energy source, including as fuel for ships, and is expected to play a significant role in achieving GHG reductions and advancing a carbon-recycling society due to its broad applications in the chemical market.

Ethylene and propylene, essential raw materials for plastics widely used in daily life, are currently produced from fossil based raw materials in Japan. Therefore, the Methanol to Olefin (MTO) process, which produces these materials from methanol, is attracting attention as a promising technology to achieve carbon neutrality.

The Demonstration Project represents a new initiative within the Mizushima Complex to promote collaboration among Hard-to-Abate industries (industries where GHG emissions are difficult to reduce). By utilizing CO2 contained in by-product gases from steel manufacturing processes to produce valuable chemicals, the project provides a model for collaborative CO2 utilization. Looking ahead, the initiative aims to develop into a conceptual framework for carbon recycling through the collaboration of the steel and chemical industries. This approach is expected to reduce GHG emissions compared to traditional fossil resource-based methods for chemical production.

The Mizushima Complex, home to business operations of all three companies, is a high- density industrial area where diverse industries have concentrated. It is a promising region for cross-industry collaboration on CO2 utilization. Through the supply chain established within the Mizushima Complex, the three companies will strengthen their collaboration to contribute to building a sustainable society and advancing the Demonstration Project.

Furthermore, the three companies will explore broader opportunities for collaboration with other businesses within the Mizushima Complex. By promoting initiatives aimed at achieving carbon neutrality across the entire Mizushima Complex, they aim to drive meaningful contributions to tackling global environmental challenges.

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Fibre2Fashion News Desk (HU)