JFE Steel Corporation announced today that its JGreeX^™ green steel products have been selected for exclusive use in the construction of dry bulk carriers (large cargo ships) that will be built in Japan. Under the initiative, participating shipping companies will require that shipbuilders exclusively use JGreeX^™ for all steel materials they directly purchase for the construction of the world’s first ships made entirely of green steel. The unprecedented collaboration will help to reduce CO₂ emissions in global shipping and encourage other cost-sharing initiatives to combat global climate change.

The Japanese shippers participating in the initiative include NYK Bulk & Projects Carriers, Ltd., MOL Drybulk Ltd., Toko Kaiun Kaisha, Ltd., Kawasaki Kisen Kaisha, Ltd., Kawasaki Kinkai Kisen Kaisha, Ltd., Daiichi Chuo Kisen Kaisha, Ltd., Daiichi Chuo Kinkai Kaisha, Ltd., and Eastern Car Liner, Ltd.

For JGreeX^™ green steel products, which significantly reduce CO₂ emissions in steelmaking, JFE Steel uses the mass balance approach to allocate emission reductions to specific steel products. In accordance with Japan Iron and Steel Federation guidelines, JFE Steel allocates the environmental values of CO₂ emission reductions across an entire manufacturing process to specific steel products, which are then considered to have low CO₂ emission intensity.

As the worldwide push for carbon neutrality accelerates, international shippers are looking for ways to reduce their CO₂ emissions. But despite the strong need for the use of low-carbon steel in shipbuilding, until now there has been no business model for sharing the costs of using green steel.

All parties involved in the new business model will share the associated costs of reducing CO₂ emissions. JFE Steel, which itself is also engaged in shipping activities, will support the business model as both a shipper and a steelmaker, contributing to the realization of a distributed model in which the costs of CO₂ reduction are shared across the entire supply chain within a sustainable framework.

In the current fiscal year ending in March 2024, JFE Steel expects to deliver 14,000 tons of JGreeX^™ products to two shipbuilders, Onomichi Dockyard Co., Ltd and Higaki Shipbuilding Co., Ltd., for use in four vessels to be commissioned between September 2024 and January 2025 by shippers NYK Bulk & Projects Carriers, MOL Drybulk and Toko Kaiun.

Going forward, in addition to expanding sales of JGreeX^™, JFE Steel expects to continue contributing to decarbonization by further reducing CO₂ emissions through the use of advanced low-carbon technologies as well as energy-saving and high-efficiency technologies.

About JFE Steel Corporation

JFE Steel Corporation, one of the world’s leading integrated steel producers, was established through the consolidation of NKK Corporation and Kawasaki Steel Corporation in 2003. The company operates several steelworks in Japan and numerous branch offices and affiliates throughout the world. JFE Steel leverages world-class technologies and know-how to produce a wide range of products based on its “Only One, Number One” strategy of focusing on unique and best-in-class products. The company reported consolidated sales of 2,255 billion yen and consolidated crude steel output of 23.96 million tons in the fiscal year ended March 2021.

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