JFE Will Set Up A Joint Venture To Build The Direct Reduced Iron Supply Chain

Japan's JFE Steel has agreed to set up a joint venture with Itochu and Emirates to create a direct reduced iron supply chain in the United Arab Emirates.

Within the joint venture, Emirates Steel will be responsible for direct reduced iron production and Itochu will be responsible for steady sourcing of high-grade iron ore. The joint venture will start production of direct reduced iron in earnest in the second half of 2025 and supply steel mills in Asia, including JFE.

The joint venture plans to use natural gas to melt back iron ore and use carbon capture, utilization and storage (CCUS) technology to store carbon dioxide emitted during production in a field in the United Arab Emirates.

In addition, the joint venture said it would consider using solar power to generate electricity in the future and replacing natural gas with hydrogen to produce direct reduced iron to reduce carbon dioxide emissions.

JFE released its "JFE2050 Environmental Business Vision" in May 2021, and is now actively looking for feasible solutions to the challenges of climate change and striving to contribute to the sustainable development of society.