ENEOS Corporation (President: Saito Takeshi; "ENEOS") and JFE Steel Corporation (President and CEO: Kitano Yoshihisa; "JFE Steel") announce that they have started a collaborative study for the utilization of CO₂-free hydrogen at the Mizushima Industrial Complex (Kurashiki City, Okayama Prefecture).

The Mizushima Industrial Complex, where both companies have their business facilities and where businesses in many industries are concentrated, has the potential for large-scale use of hydrogen in the future. The two companies will conduct studies on the development and utilization of a facility to receive, store, and supply CO₂-free hydrogen in this area. With the aim of establishing a CO₂-free hydrogen supply chain by 2030, the two companies will also conduct studies on how to expand the supply chain toward the growing use of hydrogen after 2030 and how to effectively use hydrogen to realize a decarbonized society.

In the ENEOS Group’s Long-Term Vision, ENEOS states that it will take on the challenge of achieving both a stable supply of energy and materials and the realization of a carbon-neutral society. As a part of this effort, ENEOS is conducting a study to establish a hydrogen supply chain using a type of organic hydride (LOHC)^*1, methylcyclohexane (MCH)^*2, which is a hydrogen carrier suitable for the storage and transportation of hydrogen. Specifically, the study will be conducted at the Mizushima Refinery for the reception, storage, and supply of hydrogen. MCH is a liquid with properties similar to petroleum, and by utilizing existing infrastructure such as refineries, it can reduce investment and enable a cost-competitive hydrogen supply in the future.

Meanwhile, the JFE Group has formulated the JFE Group Environmental Vision for 2050^*3 and has positioned climate change initiatives as one of the most important management issues, making concerted efforts to solve this issue. JFE Steel has been conducting a multipronged study on the development of various ultra-innovative technologies such as carbon recycling blast furnaces and direct hydrogen-reduction steelmaking. Under the New Energy and Industrial Technology Development Organization (NEDO)’s commissioned and subsidized research and development project JPNP21019 "Green Innovation Fund Project^*4 / Hydrogen Utilization in Iron and Steelmaking Processes," JFE Steel is working on the development of low-carbon technologies using external hydrogen and CO₂ contained in blast furnace exhaust gas. JFE Steel is currently studying a test blast furnace at West Japan Works (Kurashiki District) with the aim of starting a demonstration in 2029, and expects to utilize hydrogen as a fuel in this test furnace and in the iron mill.

The two companies aim to achieve carbon neutrality at the earliest date possible by leveraging their existing infrastructure and other assets, as well as the technologies and knowledge they have cultivated over the years. The two companies will also collaborate with other parties on various initiatives to promote carbon neutrality in the region as a whole, and contribute to the realization of a sustainable society.

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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