2024/06/14

Nippon Steel Co., Ltd.

Nippon Steel Co., Ltd. (hereafter, Nippon Steel) collaborates with Sumitomo Corporation (hereafter, Sumitomo Corporation), and Qatar National Petroleum Company QataRenergy (Headquarters: Qatar, hereafter “Qatar Energy”) is leading Blue Ammonia in the Qatar Country/Mesaid region^{(Note 1)}CCS for manufacturing plant construction projects (commonly known as Generators 7)^{(Note 2)}We received an order for high-alloy seamless oil well pipes manufactured by Nippon Steel for the project, and the first product has now been shipped.
In this project, green steel applied the mass balance method provided by Nippon Steel^{(Note 3)}(hereafter, Green Steel) “NSCarbolex Neutral (NS Carbolex Neutral)”^{(Note 4)}will be adopted.
This is the first order acceptance for high-alloy seamless oil well pipes and NSCarbolex Neutral for large-scale CCS projects for the Middle East region.
Qatar is a natural gas producing country that boasts abundant natural gas reserves and accounts for about 30% of the global market share in LNG exports, and while supplying natural gas as transition energy, it is also working on ammonia production and CCS projects aimed at decarbonization. The blue ammonia production plant construction project promoted by Qatar Energy is CO from methane gas emitted from the Mesaid region, which is one of Qatar's leading industrial regions₂Ammonia is produced after separating and storing it in the ground. The plant has an annual output of 1.2 million tons and is scheduled to start operation in 2026, making it one of the world's largest ammonia production plants.
CO pressurized into the ground₂Various impurities are mixed in, which increases the corrosive properties of oil well pipes. Nippon Steel's high-alloy oil well pipes have shown excellent corrosion resistance in harsh oil and gas development environments until now, and in recent years, in addition to conventional oil and gas fields, they have also been used in decarbonization and new energy fields such as CCS in other regions.
As part of efforts to realize a carbon-neutral society by 2050, Nippon Steel will use CO in steel manufacturing processes₂Steel product NSCarbolex Neutral for which emission reduction amounts have been allocated and CO in society₂High-performance product/solution technology that contributes to reducing emissions “NSCarbolex Solution^{(Note 5)}By providing the two values of”, we will contribute to customer decarbonization and competitiveness improvement, and in turn, the realization of a carbon-neutral society.
(Note 1) Blue ammonia
CO generated during the ammonia manufacturing process₂Carbon-neutral ammonia collected and utilized
(Note 2) CCS
An abbreviation for Carbon Dioxide Capture and Storage. CO emissions from industrial activities₂Collecting and storing
(Note 3) Green steel using a mass balance method
CO due to additional reduction projects implemented by steel manufacturers₂It is a steel product in which GHG (Greenhouse Gas, greenhouse gas) emission reductions, etc. are pooled within the organization, and the reduction amount is distributed to any of the company's products and supplied together with a certificate, and it complies with the “Guidelines on Green Steel Applying a Mass Balance Method” established by the Japan Iron and Steel Federation. We interpret that customers who have purchased green steel using the mass balance method can report it as a deduction from their own Scope 3 emissions under the GHG protocol.
(Reference) Japan Iron and Steel Federation “Guidelines for Green Steel Using the Mass Balance Method”
https://www.jisf.or.jp/business/ondanka/kouken/greensteel/
(Note 4) NSCarbolex Neutral
CO in steel manufacturing processes using the mass balance method₂Steel products for which emission reduction amounts have been allocated
https://www.nipponsteel.com/product/nscarbolex/neutral/

(Note 5) NSCarbolex Solution
CO in society₂High-performance products and solution technologies that contribute to emissions reduction
https://www.nipponsteel.com/product/nscarbolex/solution/

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