https://www.nedo.go.jp/news/press/AA5_101957.html
—Contributing to CO2 Emission Reductions in the Steel Sector—
July 31, 2026
New Energy and Industrial Technology Development Organization (NEDO)
JFE Steel Corporation
Yamanashi Hydrogen Company, Inc. (YHC)
Tomoe Shokai Co., Ltd.
Kanadevia Corporation
Yamanashi Prefectural Enterprise Bureau
Hydrogen Steelmaking Consortium (GREINS)
Under the “Development of Direct Hydrogen Reduction Technology” Green Innovation Fund project titled “Hydrogen Utilization in Ironmaking Processes”, Japan has successfully produced a prototype of reduced iron using green hydrogen for the first time. This prototype production was achieved by combining the development of green hydrogen production technology with utilization technology; it utilized green hydrogen supplied from a production facility built under NEDO’s technology development project for establishing a hydrogen-based society, and a direct hydrogen reduction test facility constructed as part of this project.
Moving forward, the consortium will continue to advance the development of direct hydrogen reduction technology with the aim of achieving practical implementation in society. In addition, the group will focus on collaboration that transcends individual project boundaries, aiming to realize carbon neutrality in the steel sector by 2050 and contribute to the reduction of greenhouse gas emissions.
Background
The steel industry is the largest emitter of carbon dioxide (CO2) within the industrial sector, accounting for approximately 14% of Japan’s total CO2 emissions; consequently, there is a strong demand for emission reductions. In 2022, Nippon Steel Corporation, JFE Steel Corporation, Kobe Steel, Ltd., and the Japan Research and Development Center for Metals (JRCM) formed the Hydrogen Steelmaking Consortium (GREINS*1) and have been working on developing technologies to drastically reduce CO2 emissions under this project. This project is characterized by a cross-industry framework and initiatives that encompass both technological development and practical social implementation; development is proceeding in collaboration with numerous domestic research institutions.
Supply of Green Hydrogen
The Yamanashi Prefectural Enterprise Bureau constructed and has operated the “Yonekurayama Power Storage Technology Research Site” in Yonekurayama, Yamanashi Prefecture, as part of NEDO’s project titled “Technology Development for Power-to-Gas Systems Aiming to Build a CO2-Free Hydrogen Society”*. At this site, a system has been established to produce green hydrogen using renewable energy and a 1.5 MW PEM water electrolysis system manufactured by Kanadevia Corporation, followed by the transport and sale of the hydrogen as high-pressure gas. For this initiative, green hydrogen was supplied via Yamanashi Hydrogen Company (YHC) and Tomoe Shokai Co., Ltd., and was used to produce trial quantities of reduced iron.
Under this project, a small-scale pilot plant with a production capacity of 15 kg/h was constructed at JFE Steel’s East Japan Works (Chiba District), and hydrogen reduction testing began in December 2024. Green hydrogen produced at Yonekurayama, Yamanashi Prefecture, was transported to the site by trailer; hydrogen reduction tests using this green hydrogen were conducted from June 29 to July 1, resulting in the production of approximately one ton of reduced iron—a first for Japan. In this instance, we confirmed the feasibility of producing reduced iron through a stable reduction reaction of iron ore using green hydrogen.
Future Plans
NEDO will continue to advance this project, aiming for the early practical implementation of the developed technologies. Meanwhile, achieving carbon neutrality in the steel industry requires securing large quantities of low-cost hydrogen and collaborating across sectors—beyond just steelmaking—on technologies such as the separation, recovery, effective utilization, and storage (CCUS) of emitted CO2. NEDO will further strengthen collaboration among projects and contribute to reducing greenhouse gas emissions in the steel sector, aiming to achieve carbon neutrality by 2050.
JFE Steel is advancing the development of ultra-innovative technologies—leveraging resources such as the Green Innovation Fund as outlined in its 8th Medium-Term Business Plan—with the goal of establishing the necessary technologies for carbon neutrality by around 2035. Moving forward, the company will pursue a multi-track approach, developing ultra-innovative technologies like carbon-recycling blast furnaces alongside the direct reduction technology using green hydrogen demonstrated here, all with the aim of achieving carbon neutrality by 2050.
Yamanashi Hydrogen Company (YHC), Tomoe Shokai, Kanadevia, and the Yamanashi Prefectural Enterprise Bureau will work to strengthen the production and supply systems for green hydrogen by expanding the adoption of the “Yamanashi Model P2G System”—a green hydrogen production facility developed jointly with participating companies. They will also contribute to realizing a carbon-neutral society by 2050 through the establishment of a stable supply infrastructure.
The Hydrogen Steelmaking Consortium (GREINS) will continue its multi-track efforts regarding technology development and practical implementation for this project. By jointly utilizing and sharing resources—such as human capital, facilities, equipment, and know-how—among the member companies, the consortium will contribute to achieving carbon neutrality by 2050.