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Japan (JP)🧪 Chemicals / MaterialsPublished: 10 January 2026

[Corporate Strategy] Nippon Steel Advances EAF, Hydrogen Direct Reduction and Hydrogen Injection in Parallel — Multi-Track Technology Development Accelerates in 2026

Source:Nippon Steel Carbon Neutral Vision
Nippon Steel is pursuing several technologies in parallel under its Carbon Neutral Vision 2050, including large-scale electric arc furnace (EAF) production of high-grade steel, hydrogen-based direct reduction, and hydrogen injection into blast furnaces. In March 2026, its pilot blast furnace at Kimitsu confirmed a 45% reduction in CO₂ emissions through hydrogen reduction, and its Hasaki R&D centre began trial operation of hydrogen-based direct reduced iron production. We note that the passage referring to preparations for "third-party verification arrangements ahead of full EU CBAM taxation" is not sufficiently corroborated by the primary sources reviewed for this article, and we have treated the relationship to CBAM only as one aspect of the external market environment encouraging the company's shift toward low-carbon steel.
Editor's View

Decarbonising steelmaking is not a matter of a single technology, but a long-term structural transformation involving combinations of steelmaking processes, capital investment, raw materials and energy. For steel-using companies, this affects future supply volumes, manufacturing methods and CO₂ reduction value of low-carbon steel, shaping procurement strategy; in assessing a company's decarbonisation strategy, it is important to look not at "targets" but at which manufacturing processes will be replaced, when, and with which technologies.

※ This article is based on official public information from an external source (Nippon Steel Carbon Neutral Vision) and has been analyzed and organized for practical use.

Related Regulation Information

EU Carbon Border Adjustment Mechanism (CBAM)

The EU Carbon Border Adjustment Mechanism (CBAM) adjusts the carbon cost of imported carbon-intensive products based on the greenhouse gas (GHG) emissions generated during their production. It aims to narrow the carbon cost gap between EU and non-EU industries, preventing carbon leakage and encouraging decarbonization investment. During the transitional period (October 2023 to December 2025), the only obligation was to report data. Full application has applied since January 1, 2026: emissions embedded in goods imported from 2026 onward must be covered by surrendering CBAM certificates (certificate sales begin February 1, 2027, and the first annual declaration and surrender are due by September 30, 2027).

See this regulation's full analysis (timeline & business impact)

💡 The overview and schedule for the regulation related to this article can also be found on the Regulatory Gateway Database page.

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